This Week In The News

NEWS IN SHORT

• South African digital banking group TymeBank has sent an open letter to Minister of Home Affairs Leon Schreiber urging him to reverse the decision to hike verification fees by 6,500% as from 1 July 2025. Under the current system, it costs a client 15 cents per check. From 1 July, this fee will increase significantly to R10, with an option for ‘offline’ bulk checks at R1 per field.
  
  
• Electricity and energy minister Kgosientsho Ramokgopa says municipalities with a combined debt of over R100 billion with Eskom have made little progress in reducing the amounts they owe.
  According to the minister, the ongoing problem will result in the total collapse of the South African electricity complex.
  The municipal debt owed to Eskom makes it difficult for the utility to invest in its infrastructure, forcing it to apply for higher annual electricity price increases.
  
  
• Old Mutual has opened pre-registrations for OM Bank, its upcoming digital bank that aims to compete with Capitec in the same market segment.
  
  
• Old Mutual pays out an average of R29 million per working day to clients who claim on its various life insurance policies and other life underwriting activities.

• Several companies and individuals are lobbying the Information Regulator to crack down on Truecaller in South Africa. Aggrieved business owners have said that Truecaller has harmed their companies by flagging their numbers on the platform and charging them a fee to be whitelisted.

• Bank Zero chairman and co-founder Michael Jordaan announced that Lesaka Technologies bought their bank for R1.1 billion, pending regulatory approvals.

• Three banks hit with sanctions in South Africa The Prudential Authority has given HBZ Bank Limited, Citibank and Bank of Taiwan administrative sanctions for failing to comply with the Financial Intelligence Centre (FIC) Act.
  1. The administrative sanctions imposed on HBZ consist of three cautions not to repeat the conduct, which led to the non-compliance, two reprimands and a financial penalty totaling R9 million.
  2. The administrative sanctions imposed on Citibank consist of a caution not to repeat the conduct, which led to the non-compliance and a financial penalty totalling R6 million.
  3. Bank of Taiwan, South Africa Branch (BOTSA) received no financial penalty from the Prudential Authority.

• The South African government has been quiet about its plans to review the fuel price formula, which it hopes will ease the strain of high prices on motorists in the country. In October 2024, Mantashe said South African motorists should be paying around R14 per litre of fuel.

• South Africa’s largest banks are facing a R60 billion class action lawsuit from former homeowners claiming their properties were sold unlawfully for much less than market value. The long-standing case, initiated in 2017, is expected to be heard in February 2026.

• On Tuesday, 24 June, the rand was trading at R17.78 to the dollar, R24.11 to the pound and R20.64 to the euro. Oil was trading slightly lower at $69.68. a barrel.

• The National Union of Metalworkers of South Africa, the country’s largest labour group, has demanded employers in the motor industry, which includes component manufacturers and auto retailers, to give workers 10% raises ahead of talks that will agree wages for the next three years.

• Schreiber hits back at TymeBank CEO: Home Affairs Minister Leon Schreiber criticised TymeBank CEO Coenraad Jonker on social media for prioritising profits after he opposed the proposed fee increase for identity verification checks from 15 cents to R10. Jonker warned this could hinder the bank’s ability to offer real-time, no-fee account openings

• US auto safety regulators are looking into incidents where Tesla’s self-driving robotaxis appeared to violate traffic laws during the company’s first day offering paid rides in Austin.

 

Feedback on Last Week’s “Who Writes the Laws, and Who Enforces Them?”

We are still actively engaging with the relevant government authorities regarding the AARTO infringement notice issued to one of our members in Boksburg. In line with standard industry practice, the financing bank was listed as the titleholder, while the dealership was listed as the owner—a legal and widely recognized structure used for floor-planned vehicles.

This week, the same officer issued infringement notices to two additional dealerships, citing that "the motor dealer displayed a vehicle for the purpose of sale on his/her premises without such vehicle being registered in his/her name as dealer stock."

In some of these cases, however, the vehicles in question were, in fact, correctly registered with the dealer listed as both the titleholder and the owner.

We continue to engage at the highest levels with government agencies. Unfortunately, we are seeing little indication of urgency or resolution from their side.

We remain committed to defending our members’ rights and will pursue all appropriate avenues to ensure lawful and fair enforcement practices are upheld.

 

This Toyota SUV is twice as powerful as the Fortuner.

South Africa will soon receive a new Toyota SUV that is far more powerful than anything you’ll find in a local showroom.

Autogroup International, a company that specializes in converting American cars to right-hand-drive, recently announced that it is importing several new models that otherwise wouldn’t be available in our market.

It should therefore come as little surprise to learn that the Tundra’s SUV counterpart – the Sequoia – is also heading our way.

The SUV will be imported to South Africa in two specifications – TRD Pro and Capstone – which are described as the “off-road ready” and “luxury flagship” options, respectively.

Like the Tundra, the SUV will be imported to South Africa in two specifications – TRD Pro and Capstone – which are described as the “off-road ready” and “luxury flagship” options, respectively.

Both versions are fitted with the automaker’s i-Force Max hybrid engine, which combines a 3.4-litre twin-turbocharged V6 petrol plant with an electric motor.

This gives the Sequoia a tremendous output of 325kW and 790Nm – roughly twice as much power and 35% more torque than the uprated Fortuner GR-Sport.

 

Unauthorized Repairs Undermine Consumer Protection and Supplier Liability:

Dealers across South Africa are increasingly faced with a recurring challenge: consumers bypassing formal complaint and resolution processes by taking their vehicles to third-party repairers without authorization. A recent ruling by the Motor Industry Ombudsman of South Africa (MIOSA) underscores the implications of this practice—not only for the complainant, but also for the supplier.

In the case at hand, the complainant opted to have the subject vehicle repaired by a third-party workshop before the supplier had an opportunity to assess or address the issues. This unilateral decision effectively released the supplier from all liability. As MIOSA confirmed, the complainant’s actions resulted in unauthorized repairs, which in turn invalidated the statutory implied warranty provided under the Consumer Protection Act.

From the supplier’s point of view, this situation is all too familiar. Consumers often act in frustration or urgency, without understanding that such actions compromise their own rights and protections. Once a third-party has intervened, it becomes nearly impossible to determine whether a defect is original or a result of the unauthorized repair work. This ambiguity leaves dealers unfairly exposed to potential claims for damage they did not cause—and often without the ability to defend themselves due to the altered state of the vehicle.

Suppliers are not opposed to consumers seeking redress; in fact, they are legally and ethically obligated to respond to legitimate complaints. However, this process must be followed correctly. MIOSA exists specifically to mediate such disputes fairly. Had the complainant in this case allowed MIOSA to intervene, the matter could have been resolved without forfeiting her statutory rights.

This ruling sends a clear message: consumers who take matters into their own hands by initiating unauthorized repairs do so at their own risk. From a supplier’s perspective, the expectation is simple—give us a fair opportunity to inspect, diagnose, and, where necessary, rectify any issues in accordance with the law.

In a market where accountability and transparency are key, both parties must adhere to the correct procedures to ensure fair outcomes. Suppliers urge consumers to exercise patience and engage the right channels before acting, to avoid undermining their own claims and protections.

 

Standard Bank’s Youth Barometer report.

The report breaks down the purchasing habits of the bank’s three million personal and private banking clients between the ages of 18 and 35 to highlight emerging patterns in the way young consumers are spending their money.

One of the takeaways from the report is that 18 to 35-year-olds are more pragmatic and financially responsible in their decisions than initially assumed. This was pointed out in the data for the most-finance car brands collected by Standard Bank’s vehicle and asset finance division, which noted that younger motorists prefer to boy used cars and practical models, rather than those with a more image-conscious appeal. In other words, younger audiences are not spending beyond their means to acquire prestige models from well-known or luxury brands. Affordability is obviously one of the primary factors that consumers in this age bracket are concerned with.

Additionally, most under-35s do not include a deposit on their car finance agreement as they lack the funds to do so. Standard Bank noted that 65.1% of youth buyers who financed a car between January 2024 and May 2025 did not put down an initial payment

Another important consideration is that persons in their early 20s tend to spend a far greater portion of their monthly budget on car payments relative to other banking clients. The average instalment-to-income ratio for 18 to 35-year-olds is 16.7%, compared to 11.4% for those older than 35.

 

What young motorists are buying

Standard Bank’s data shows that young South Africans prefer to buy second-hand, as only 27% of finance plans are for new vehicles.

While the make and model are still considerations for most buyers, they are less of a priority compared to concerns like features, quality, and practicality.

Standard Bank found that young individuals are willing to try out new brands that lack the established resale value and network support of a brand like Toyota.

Hatchbacks are exceptionally popular with motorists in their 20s because they are small, affordable, easy to park, and light on fuel.

 

Good news for Suzuki fans in South Africa

Suzuki has just announced that the Safari Town Festival will make its triumphant return to South Africa this year.

The second festival will take place on the weekend of Saturday, 27 September 2025, and the location has been changed from Clarens to the Karoo town of Oudtshoorn in the Western Cape.

“The first Suzuki Safari Town Festival exceeded all our expectations – the energy, the turnout, the sense of community. It set the tone for something truly special,” said Henk van der Schyf, event organiser.