Admin
11 Sep, 2025
NCA’s inclusion of educational institutions is a death knell for student credit records
Statement by Lucia Matomane, UDESMO Eastern Cape Provincial Chairperson The United Democratic Students’ Movement (UDESMO) in the Eastern Cape is deeply troubled about the Department of Trade, Industry and Competition’s, proposed amendment to the National Credit Act (NCA), which seeks to include educational institutions as data sources for credit reporting. We strongly oppose this amendment and its potential consequences for South African students and graduates. South Africa is already facing an unprecedented unemployment crisis, with graduates forming a significant part of the jobless population. Many young people, despite having completed their studies, remain unemployed and unable to service their crippling student debt. Instead of addressing the structural challenges that hinder youth employment, this amendment risks trapping graduates in a cycle of debt and financial exclusion. There is also a very real risk that negative credit records arising from unpaid student debt could prevent graduates from employment opportunities, particularly in the financial sector and other industries where a clean credit record is required. This policy could worsen youth unemployment and deny poor and previously disadvantaged graduates, access to already limited economic opportunities. Education must serve as a pathway to empowerment and upliftment. Instead, these proposed credit measures will deepen inequality and effectively oppress the financially vulnerable and economically marginalised youth, closing the door to economic participation and social mobility. The NCA is threatening to kill the future of our generation. Young people who wish to start businesses risk being blacklisted at the very beginning of their journeys, with their futures destroyed before they even have the chance to build them. As UDESMO Eastern Cape, we stand firm in advocating for fair and transparent credit practices, greater financial education, and meaningful support for vulnerable students. We call on policymakers to take into account the unique challenges students face and to work towards creating a more inclusive, just, and supportive financial environment that empowers rather than cripples young South Africans. The UDESMO Eastern Cape therefore calls for the withdrawal of this amendment and for the Department of Trade, Industry and Competition to engage with stakeholders on solutions that address the root causes of graduate debt and unemployment, such as debt relief measures and sustainable pathways to employment. South Africa’s future cannot be built on the financial exclusion of its youth.
Admin
14 Nov, 2017
UDM’s reaction on the report of the Commission of Inquiry into Higher Education and Training
Statement issued by Mr Nqabayomzi Kwankwa – UDM Deputy President and Chief Whip The United Democratic Movement (UDM) has noted the report of the Commission of Inquiry into Higher Education and Training released by the President on 13 November 2017. We welcome the Report’s reaffirmation of the clarion call and the need to make education accessible to all South Africans. We, however, reject the Report’s recommendation that Income Contingency Loans be adopted as the new funding model for students, as this commodifies education. This system will create an army of young graduates who are debt-trapped long before they even get an opportunity to earn an income. On the other hand, South Africa’s unscrupulous banks will be cash flushed by charging students exorbitant fees and interest rates on risk-free loans that are fully backed up by government guarantees. While we welcome the Report’s recommendation that there should be more resources allocated to the Vocational, Educational and Training Colleges (TVET) sector, we are concerned that throwing money at the problem without addressing the structural challenges facing this sector will compound the problem. South Africa needs to redefine this sector and reposition it so that it is able to respond to the labour market demands whilst contributing to economic growth. We agree that the Early Childhood Development (ECD) sector is the missing link in the current education system and much more must be done to integrate it into the mainstream education system with very clear goals and objectives. To this end, UDM does not find any concrete solution from the Heher Report and is disappointed that the Presidency took more than two months to release it and when it did release it eventually, it did so without a clear position and a clear way forward on it. Instead, it took a bureaucratic approach by referring it to yet another structure, the Inter-Ministerial Committee, to process it. These delaying tactics are indication that Presidency is using education as a pawn in the political factional battles of the ruling party in the run-up to its elective congress in December. The UDM believes that government should fund fee-free quality education by downsizing its executive, putting an end to the ever-increasing wasteful, irregular and fruitless expenditure, closing the tap on illicit financial flows and increasing corporate income tax, among others. End
