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Brief historical look at Credit Law in South Africa

South Africa’s history of legislating consumer credit dates back in time; however it was only after the adoption of the Constitution in 1996 that credit became legislated under the democratic dispensation.

Written by MZWeekly 12 August 2025, 09:00 am. 3 min read Before 1994, credit law in South Africa was governed by the Usury Act (73 of 1968) and the Credit Agreements Act (75 of 1980) (Renke,n.d). When one considers the end of apartheid, it is easy to pay a lot of attention on the political aspect of the transition to a constitutional democracy and so the tendency is to often forget that the political environment created by apartheid had implications on the economic laws and policies of the time. An absence of consumer credit protection, let alone consumer protection was as a result of the Usury Act of 1968 and the Credit Agreements Act of 1980 enacted at the time when discrimination was legislated, while the independent homelands offered very little or no legislated protection to consumers at all, implication of this was that a majority of South Africans could not access credible credit facilities and services Replacing these acts was the National Credit Act 34 of 2005 which was given effect by the constitution. The national credit act was created to be uniquely South African, appreciating the past, and the act aims to be “responsiveness to social context” in other words, moving away from the past. Supervised and under the office of the National Credit Regulator and the National Consumer Tribunal, the act puts in its preamble the desire to promote fairness, a non-discriminatory marketplace for accessing consumer credit and the supporting of black economic empowerment and ownership on the consumer credit industry. Section 3 of the act sets its aim to be the creation of an accessible consumer credit to all people who otherwise were not owing to the Usury Act (73 of 1968) and the Credit Agreements Act (75 of 1980). The national credit act was preceded by the policy framework of 2004 which sought to take advantage of economic benefits of a larger credit market assisting people create new opportunities while expanding assets. This policy framework made South Africa the first African country to introduce a legal framework for consumer credit (Schraten, 2014). Furthermore, the existence of the policy framework would ensure to reduce chances of abuse towards the expanded consumers. The Usury Act (73 of 1968) and the Credit Agreements Act (75 of 1980) necessitated the exclusion of the majority of South Africans to acquire assets using credit. To an extent even those South Africans who may have covered by the acts did not enjoy the benefits presented by the National Credit Act. The credit act is not without any weaknesses, for example Schraten (2014) argues the creation of the competitive credit market anticipated with the introduction of the act has had unintended consequences such as over-indebtedness. Other drawbacks of the act according to Otto (2010) include unclear definitions of "mortgage" and "secured loan." These definitions are expected to be reviewed considering global experiences of the same in places such as Australia and Britain. Despite the criticism, the credit act has clearly played a role in allowing many people to access credit that is regulated and inclusive of all. The national credit act has had years of case law and amendments made. With regards to case law there is a long list of judgements where the South African courts have interpreted the act in line with the broad vision of promoting a fair and transparent credit industry that is accessible to all. Notable amendments are (i) the National Credit Amendment Act 19 of 2014 enacted to reexamine definitions, governance structures, regulate debt counsellors, and introduce mechanisms such as automatic removal of adverse consumer credit information, declarations of reckless credit agreements by the Tribunal and more. (ii) the National Credit Amendment Act 7 of 2019 which included major changes including debt intervention frameworks, new duties for the National Credit Regulator (NCR), creditor obligations, and other requirements for the Minister to regulate. Most recently, the Department of Trade, Industry & Competition has placed on the government gazette and called for input by 12 September 2025 on draft amendments to regulations under the 2005 National Credit Act. Once in effect, the proposed regulations will impact on the following: credit bureau maintenance and retention of consumer credit information and measures taken by credit providers when assessing consumers’ ability to pay the credit instalments anticipated by the credit (Department of Trade and Competition, 2025). References Schraten, J. 2014. Transformation: Critical Perspectives on Southern Africa (ISSN 0258-7696). The transformation of the South African credit; Issue: 85; Pages: 1-20. Otto, J. 2010. The History of the Consumer Credit Legislation in South Africa, Unisa Press. Pages: 257 – 259. Fundamina: A Journal of Legal History https://hdl.handle.net/10520/EJC34391 Renke, S. An analysis of the National Credit Act 34 Of 2005 as an instrument to achieve the Socio-Economic Transformation of Credit Law in South Africa Department of Trade, Industry & Competition 2025
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Revisiting Act (No. 108) of 1991

The group areas act of 1950 regarded as the bedrock of the apartheid system and as the name suggests, grouped and classified people in the cities and remote areas according to race in order to enforce its larger vision of creating separation famously termed “good neighborliness”. This act was not however without effects as it forced millions out of their homes and business premises through forced removals.

Written by MZWeekly 12 August 2025, 16:00 pm. 4 min read The implications of the forced removals were not only social but economical since the zones created separated people who otherwise would have found solutions together. Prior the introduction of the act different racial groups lived side by side and although racial prejudices of the time existed (owing to the 1913 and 1936 land acts) there was relative cooperation. Around 1980’s the apartheid government wanted to change how it is perceived around the world and undertook on a drive to be seen to be doing something about legislated separation. One of these cosmetic changes although coming late was the Abolition of Racially Based Land Measures Act of 1991. Introduced under the last apartheid president F.W. de Klerk the act scrapped the previous legislation related to land occupation and use (the 1913 and 1936 land acts). In particular the introduction of the act allowed the following to occur; (i) provisions to be made that allowed for the amendments and repealing of race based restrictions related to land use and acquisition; (ii) provided space for the restructuring and phasing out of racially based institutions; (iii) regulating of norms and standards in residential environments; (iv) the establishment of the Advisory Commission on Land Allocation. In 1997 the policy document on land known as the white paper on land reform was released, this document outlines the country’s strategy on land reform. As its structure, key themes are the following: justice, reconciliation, economic growth and household welfare. As its aims the policy centers on restitution (redirecting land or offering compensation to individuals or communities dispossessed by land act 1913), redistribution (providing poor South Africans with land for residential or productive use to elevate income levels and living standards ), and tenure reform(securing legal rights for those with historically insecure land tenure). From 1994 to date South Africa has set out laws and policies aimed at addressing the land dispossession, address inequality using land and deal with the consequences of forced removals necessitated by the legislation of the time. The following are the notable acts since passed by the South African parliament: (a) Restitution of Land Rights Act (1994) This act aimed to return land or provide compensation to people who were forcibly removed from their land after 19 June 1913. With a deadline of 1998 for the claims, this would be carried out by the Commission on Restitution of Land Rights and a land claims court. (b) Land Reform (Labour Tenants) Act (1996) This act aimed at protection of labour tenants i.e. farm workers who live on land in exchange for work, from eviction and give them certain rights of the land they live on or use. (c) Communal Property Associations Act (1996) This act aimed at allowing communities to hold and manage land collectively through Communal Property Associations (CPAs), with key focus on beneficiaries of land reform programs. (d) Interim Protection of Informal Land Rights Act (IPILRA) (1996) This act aimed at the protection of informal land rights namely; customary or traditional land rights. (e) Extension of Security of Tenure Act (ESTA) (1997) This act aimed at providing protection by security of tenure to people living on rural land especially farm dwellers (f) Traditional Leadership and Governance Framework Act (2003) Although not land specific, this act aimed at communal land governance more so areas under traditional leadership. Despite these steps towards redress of past land injustices, many have argued the process is slow. Most recently South Africa signed into law the land expropriation act 13 of 2024 (replacing the land expropriation act of 1975). This act seeks to provide a framework for the state to expropriate private property for public use or in the interest of the public and allowing for expropriation with equitable and just compensation. The act has drawn a lot of public debate around matters of compensation. In the event that process addresses past discrimination or facilitate land reform the act allows for zero or nil compensation. Others have also misinterpreted the act to mean expropriation of all land and this is not the case. References Kalley, J.A.; Schoeman, E. & Andor, L.E. (eds)(1999). Southern African Political History: a chronology of key political events from independence to mid-1997, Westport: Greenwood. SA History.org.za
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Understanding the Labour Relations Act of 1956

Before the discovery of gold and diamonds in South Africa, the main economic activity was agriculture. At best this economic activity was termed agrarian

Written by MZWeekly 10 November 2025, 15:00 pm. 4 min read There was a relationship between employers, domestic and farm workers which was supervised by acts such as the Master and Servants Act 15 of 1856 (Bhoola, 2002). The discovery of the minerals saw an increased movement of labour and workers to where the mines were located. Accordingly, the Carpenters’ and Joiners’ Union was established in 1881, making it the first trade union in the country. The union aimed at protecting the interests of skilled foreign workers working on the mines. As the industry grew so was the political power difference between races, making the area of trade unions to be mobilised on the basis of race. In 1911, the Mines and Works Act was passed which categorized work in terms of race. This period was marked by protests aimed at attempting to secure the position of white workers on the mines. Coupled with the economic depression of the time, the mining industry faced a number of a serious challenge and responded by restructuring leading to many white workers getting retrenched, these retrenchments in turn led to the abolition of the ratio between skilled white workers and unskilled black workers. After the general strike of 1914, the government responded by declaring martial law and trade union leaders were expelled from South Africa. Thereafter was a period of “calm” however this was short-lived, a circumstance made worse by the economic depression. The period of labour turbulence continued and in 1922 a watershed labour moment occurred. In 1922 a mine workers went on a strike and this had a major effect on the creation and passing of the Industrial Conciliation Act in 1924. This Act was therefore a direct forefather of the Industrial Conciliation Act of 1956. In other words, the Labour Relations Act of 1956 was derived from the earlier Industrial Conciliation Act of 1924 and the Industrial Conciliation Act of 1937. The 1956 act was an amendment that strengthened apartheid-era laws, as it was more restrictive and codified the racial segregation of the apartheid system. Conradie (2016) refers to the Industrial Coalition Act as the act that regulated labour relations at the time of Apartheid policy era, the act further provided way for a separation of workers union by means of race while forcing unions who refused to separate. The act imposed a prohibition for black and white workers from striking in “essential industries” while banning unions from politically affiliating. Specific clauses of the act gave legal meaning to the segregation of the place of work. Clause 77 gave legal backing to the reservation of skilled jobs (Hepple, 1963). This act was instrumental in the creation and maintenance of a racially based labour structure of apartheid. As one of the moves to ease the problem of labour militancy of the 70’s, a commission of inquiry was established in 1979 to investigate the labour situation in the country; this commission was called the Wiehahn Commission of Inquiry. The commission was created in response to growing African labor militancy, including the 1973 Durban strikes and the 1976 Soweto uprising(Bhoola, 2002). Out of the commission, its report recommended the extension of freedom of association to cover all persons irrespective of race or gender, thereby beginning a change in the face of labour relations in South Africa as trade unions representing black workers were now able to make use of the labour relations act of 1956. In 1956 the act was replaced by the labour relations act of 1995 (derived from Section 23 of the Constitution, the right to fair labour practices). Considered more progressive in comparison to the act of 1956, the labour relations act provides the legal framework for fair labour practices in South Africa. Guaranteeing the right to freedom of association, collective bargaining for employees and employers, the act also provides for trade union rights, strikes and dispute resolution avenues such as the Commission for Conciliation, Mediation and Arbitration (CCMA), a statutory body that is aimed at providing dispute resolution services. The Labour Courts are superior courts with exclusive jurisdiction to decide matters arising from the Act. The act as it currently stands is not without criticism as both the place of work and the place of business are forever evolving and changing. References Bhoola, U 2002. National Labour Law Profile: South Africa. International Labour Organization Conradie M (2016). The Constitutional Right to Fair Labour Practices: A Consideration of the Influence and Continued Importance of the Historical Regulation of (Un)Fair Labour Practices Pre-1977. Fundamina Volume 22 | Number 2 | 2016 pp 163-204. Hepple, A (1963). The Crime - Apartheid. Job Reservation – Cruel, Harmful and Unjust. The Blacksash, July 1963.