24/06/2026
The Department of Trade, Industry and Competition South Africa The National Credit Regulator (NCR) framework appears to place significant challenges on small businesses seeking to enter the lending industry. The requirements of the National Credit Act (NCA) are often stringent and create substantial barriers to entry for emerging businesses.
Compliance obligations are complex and expensive, making it difficult for start-ups and small enterprises to meet the regulatory standards. At the same time, the regulated cost of credit provides limited margins, which can make it challenging for new entrants to achieve sustainability and long-term growth within the industry.
These are some of the regulatory red tape challenges within the South African business environment that make it difficult for ordinary entrepreneurs and small businesses to obtain a fair share of the economy. In its current form, the NCA appears to favour established and well-capitalised businesses, making it increasingly difficult for new entrants to compete effectively.
I propose that the relevant authorities review these regulations with the aim of reducing unnecessary compliance costs and simplifying the regulatory process. This would make it easier and more affordable for start-ups and small businesses to enter the market, promote competition, encourage entrepreneurship, and contribute to broader economic participation and growth.
