Minister Tau Withdraws Controversial Credit Regulations After Public Backlash

Trade, Industry and Competition Minister Parks Tau has withdrawn draft regulations that sought to classify educational institutions as originators of credit information under the National Credit Act. The regulations, published in the Government Gazette on 13 August 2025, triggered strong public opposition, with the department receiving over 20,000 submissions before the 12 September deadline.

Most responses opposed the proposal, prompting the Minister to halt the process. Tau said the overwhelming feedback demonstrated the strength of South Africa’s democracy, where the public can openly engage government decisions.

While the regulations have been withdrawn, the Minister confirmed that government remains committed to protecting students and improving access to finance for micro, small and medium enterprises (MSMEs) to address existing funding gaps. Tau added that further engagement with stakeholders will take place to clarify the way forward and reassure affected sectors.