Home Affairs in the docks over 6 500% fee increase

The Department of Home Affairs is facing a long and protracted legal battle. This week, the Association of Communications and Technology (ACT) began legal proceedings against the government department.

ACT is a powerful lobby group representing South Africa’s largest telecommunications network operators. And it takes issue with the 6 500% fee increase Home Affairs placed on access to the National Population Register (NPR).

HOME AFFAIRS HEADING FOR LEGAL BATTLE

The new regulations, published back in June 2025, increased the fee for identity verification checks from 15 cents to R10. Minister Dr. Leon Schreiber defended the increase, saying the fee had not changed in over a decade, while the cost of maintaining the system had continued to increase.

Worse still, the minister highlighted that this lack of funding put the system under immense strain, leading to numerous offline errors. However, a High Court review of the increase will go ahead after papers were served to both the Minister of Home Affairs and Digital Communications, Solly Malatsi.

ONLINE VERIFICATION SYSTEM

“A 6 500% increase in the cost of utilising the Home Affairs online verification system (OVS) will have a direct negative impact on ACT members and, ultimately, consumers. This huge increase will make it far more expensive for network operators, banks and other companies to verify customers identities,” explained the ACT.

It advised that the move would push up the cost of essential services for millions of needy South Africans. Moreover, ACT CEO Nomvuyiso Batyi says the lack of public consultation marks a ‘significant departure from the principles of cooperative governance and accountability.’

WHAT HOME AFFAIRS MUST ANSWER TO

As such, the ACT case against Home Affairs hinges on the following:

• Why the fee increase was taken without proper public consultation.
• The 6 500% fee increase is unjustified and disproportionate.
• Regulations will have a detrimental effect on the telecommunications and financial sectors.
• Insufficient transitional time to prepare for the new fees.

BAD NEWS FOR SASSA GRANTS

Furthermore, the actions of Home Affairs may have an unintended consequence for South African Social Security Agency beneficiaries. Coenraad Jonker, co-founder and CEO of Tyme Bank Group, actually wrote a letter to President Cyril Ramaphosa and Finance Minister Enoch Godongwana, urging them to urgently stop the increase. In the letter, he noted that the fee increase would cripple the banking industry.

Jonker explained that higher fees would simply make it no longer viable to serve low-income South Africans, like those living on SASSA social grants and/or informal workers. Every SASSA application requires a monthly NPR check. And due to the millions of grants paid, the banks will have to absorb a much higher cost all of a sudden.

But what do you think? Would you disagree with the Home Affairs NPR increase if it meant paying higher bank fees? Let us know in the comments section below …