The Credit Association of South Africa (CASA) has welcomed the Department of Trade, Industry and Competition’s (DTIC) 2026/27 Annual Performance Plan (APP), which places a strong emphasis on inclusive growth, job creation, and reducing the cost of living.
“We support the DTIC’s commitment to creating over 100 000 jobs,” states Leonie van Pletzen, CEO of CASA. “We believe, however, that a critical, immediate lever to accelerate these outcomes lies in expanding access to regulated credit through targeted regulatory reform.”
“The APP explicitly recognises the need to create an enabling environment through targeted policy amendments to address the cost of credit, including the amendment of National Credit Regulations,” she explains. “We view this as a pivotal opportunity to unlock significant economic activity.”
Unlocking R350 billion through regulatory alignment
According to van Pletzen, CASA’s industry modelling indicates that aligning interest rates and fees with inflation and current cost structures could unlock up to R350 billion in additional formal credit annually.
“This is not a pricing intervention alone, it is a policy intervention on access,” she says. “Currently up to 70% of credit applications are declined, and millions of consumers are excluded from the formal market, with a significant portion of these turning to illegal lenders charging excessive rates.”
“By enabling sustainable lending within the regulated sector, approval rates can increase materially and more South Africans can access safe, transparent credit,” van Pletzen continues. “This means that economic participation will expand across MSMEs, households, and informal sectors.”
Direct impact on job creation and economic growth
Van Pletzen explains that the expansion of the regulated credit market will directly support the DTIC’s objectives:
- Increased consumer spending stimulates demand for goods and services
- SMMEs gain access to working capital, enabling growth and hiring
- Retail and service sectors expand, creating downstream employment
- Formalisation of credit reduces reliance on illegal markets, protecting vulnerable consumers
“Regulatory alignment could support millions of additional credit approvals annually,” she says. “It will also sustain and grow an industry supporting tens of thousands of direct and indirect jobs, and inject billions into productive economic activity.”
Supporting DTIC’s industrialisation and inclusion agenda
The expansion of regulated credit is directly aligned with:
- Industrialisation and enterprise development
- Transformation and inclusion of underserved communities
- Reducing the cost of living through access, not exclusion
- Building a capable and developmental state through effective regulation
A call for collaborative implementation
“We look forward to working with the DTIC, NCR, and other industry stakeholders to finalise evidence-based amendments to the cost of credit regulations,” says van Pletzen. “Together we can ensure balanced, sustainable outcomes for consumers and credit providers, and ultimately strengthen the role of the regulated credit market as a driver of economic growth.”
“By unlocking the full potential of the credit market, South Africa can accelerate job creation, deepen financial inclusion, and strengthen its economic resilience,” she continues. “We remain committed to supporting the DTIC in achieving these national priorities.”
“As South Africa seeks to rebuild growth and expand opportunity, access to formal, regulated credit must be part of the solution,” concludes van Pletzen. “Responsible credit is not a risk, it is an enabler of economic participation.”