The African National Congress (ANC) has welcomed the withdrawal of the much-debated draft National Credit Act amendment regulations, calling on the private sector to contribute to the employment of young people and to facilitate their entrance into the labour market.

Earlier this month, the African National Congress Youth League (ANCYL) urged the Department of Trade, Industry and Competition (dtic) to withdraw its proposals to amend the National Credit Act, calling on government to rather pursue policies that expand access, write off historic student debt, and ensure financial inclusion.

The amendment regulations listed educational institutions as originators of credit information, meaning educational debt would appear on credit reports.

There was overwhelming public response to the proposal, with more than 20 000 submissions, the vast majority of which were opposed to the proposed regulations.

The ANCYL called the proposal “anti-poor” and “anti-youth”, and argued that it would make the chance of falling into the debt trap for young people more likely, particularly for those from working-class and black communities.

Last month, the dtic called for input on the proposed amendments to the National Credit Regulations, which it said aimed to strengthen the way credit providers, credit bureaus, and consumers interact in the financial environment.

ANC national spokesperson Mahlengi Bhengu said students should not be blacklisted for a debt owing to an educational institution.

She said the withdrawal of the regulations indicated the power of dialogue and the potency of the voices of the people.

“In our commemorative statement of the 6th September 2025 on the occasion of the 34th anniversary of the South African Students Congress, as an organisation we made it categorically clear that the regulations did not reflect the policy of the African National Congress as the regulations constituted a flagrant violation of access to higher education and the role of higher education in employment creation, based on the principle of ‘Opening the Doors of Learning and Culture’ as advocated by the Freedom Charter,” she added.