Private Sector Faces Fee Hike for Upgraded Home Affairs Verification Service

(The Post News)– The Department of Home Affairs has announced a fee increase for private sector users of its digital verification service, effective April 1, 2025. This move aims to ensure the continued maintenance and enhancement of South Africa’s National Population Register.

According to Home Affairs Minister Dr. Leon Schreiber, the fee increase aligns with the department’s strategy to fund ongoing investments in the National Population Register without burdening public finances. The upgraded verification service supports both public and private sectors in improving service delivery, ensuring dignity for all, and driving digital transformation.

The verification system plays a critical role in enhancing service delivery for social grants and banking services, supporting economic growth, and laying the foundation for a secure digital ID system. This vision was outlined by President Cyril Ramaphosa during the State of the Nation Address.

Private sector businesses, particularly financial institutions, rely heavily on this service to verify client identities using biometric features. While fees are increasing for private companies for the first time in over a decade, government departments and agencies will remain exempt from charges.

The upgraded verification system addresses longstanding inefficiencies, including a failure rate of up to 50% and lengthy response times. Testing has confirmed that the revamped system operates with an improved error rate of less than 1% and faster response times, marking a significant milestone in South Africa’s digital transformation.

The decision to exclude public sector users from the fee increase ensures uninterrupted essential government services. Private sector users will need to adapt to increased costs while benefiting from improved reliability and efficiency.

About the Author

Evaline Namuwaya

Author

View All Posts