Tau: Proposed changes to credit regulations not meant to prejudice indebted graduates

JOHANNESBURG - Trade and Industry Minister Parks Tau has moved to assure the country that the recently published regulations on changes to the credit environment were not intended to prejudice individuals who were indebted to institutions of higher learning.

This follows Tau's plans to open up access for credit bureaux to have access to information held by state organs involved in fraud investigation and consumers’ criminal records.

Consumers will also soon have the debt owed to universities appearing on credit reports, possibly affecting their access to credit.

As part of an ongoing process of ensuring that the credit environment is robust, draft regulations were published on 13 August 2025 for a period of 30 days.

These proposed regulations are provided for in the National Credit Act.

Minister Tau said that the proposed changes were meant to ensure access to finance for micro, small and medium enterprises and not prejudice graduates that owe universities fees.

Tau said that a lack of credit and risk history for micro, small and medium enterprisesimpeded their ability to access credit from formal sector providers, resulting in them falling prey to informal lenders that charge exorbitantly.

"Improving MSME financing is a key driver of economic growth, with a particular focus on ensuring transformed, inclusive and affordable financial services for women, underserved communities, and vulnerable groups. Bridging this financing gap will not only strengthen MSME resilience and expansion but also contribute significantly to the overall growth of the national economy."

Tau said he was aware of the public concerns and has vowed to ensure a fair public participation process.