South Africas telecommunications and banking industries are taking the government to court over a fee increase they call a regressive tax, while the state defends it as the essential cost of building a modern digital nation.
The Association of Communications and Technology ACT, representing major networks including Vodacom and MTN, has filed for a High Court review to overturn a new regulation from the Department of Home Affairs. The rule increases the cost for private companies to verify a customers identity against the National Population Register NPR from 15 cents to ZAR 10.00 USD 0.63 per real-time check-a jump of over 6,500.
The system, called the Online Verification System OVS, is a critical tool used by banks, mobile operators, and insurers to comply with anti-money laundering laws and prevent fraud when opening new accounts. The new fee structure, which also introduces a ZAR 1.00 option for off-peak batch checks, took effect on July 1, 2025.
