Now, the government and the telecommunications industry want to overhaul the country’s SIM registration system for the first time since the Regulation of Interception of Communications and Provision of Communication-Related Information Act (RICA) introduced mandatory registration nearly two decades ago. 

The proposed reforms, developed by mobile operators and the Department of Justice and Constitutional Development, introduce stronger identity verification using real-time checks against the Department of Home Affairs (DHA) database. The goal is to make SIM registration as reliable as the identity checks banks already use.

The changes extend well beyond telecoms. A more trusted mobile identity system would reduce fraud on banking and fintech platforms while giving law enforcement a stronger tool to investigate cybercrime. 

“The enhanced verification measures operate through existing arrangements between the Department of Home Affairs and mobile network operators, enabling ACT members to verify customer identities against the DHA database,” Nomvuyiso Batyi, chief executive officer (CEO) of the Association of Communications and Technology (ACT), a telecoms industry body, told TechCabal on Friday.

Batyi said the industry concluded that RICA no longer reflects how digital crime has evolved. “It was driven by the rapid increase in sophisticated digital fraud from around 2019 onwards,” she said. 

Organised financial crime, identity theft and the widespread sale of pre-registered SIM cards have exposed weaknesses in the current system. Authorities have also linked improperly registered SIM cards to financial fraud and organised crime, leading to several crackdowns, including the 2024 arrest of suspects accused of selling pre-RICA’d SIM cards in Free State Province and the 2025 arrest of 48 people in KwaZulu-Natal province, for allegedly registering SIM cards using fraudulent identities.

The industry also believes anonymous communications have enabled organised crime and money laundering, concerns that gained urgency after South Africa’s grey listing by the Financial Action Task Force (FATF).

Today, RICA mainly requires customers to present identity documents when buying a SIM card. The proposed framework instead focuses on confirming that the person registering the SIM is the legitimate owner of that identity. ACT and the government have also proposed changes to RICA.

“The proposals to the Department of Justice are in line with the industry-led solution in the framework agreement,” Batyi said. “They identify legislative and operational reforms that may further improve the effectiveness and enforceability of Section 40 of RICA.”

The reforms follow an urgent meeting convened in March by Justice and Constitutional Development Minister Mmamoloko Kubayi, who brought together telecom operators, regulators and law enforcement agencies to address weaknesses in South Africa’s SIM registration system. 

The Department of Justice said improperly registered SIM cards have been linked to banking fraud, cash-in-transit robberies, kidnappings, contract killings, and cybercrime. Officials also warned that loopholes in RICA and weak registration practices have allowed bulk SIM registrations using false identities, making it harder for investigators to trace suspects. Kubayi said the government would step up enforcement.

“Given that the law already prescribes penalties of up to R5 million ($303,000) or imprisonment of up to 10 years for non-compliance, enforcement in this regard should commence from July 2026, supported by a dedicated and coordinated approach involving the police, the National Prosecuting Authority, and other relevant entities,” she said.

Leon Schreiber, the Home Affairs Minister, also told delegates at the meeting that the department’s identity verification systems, already used by banks, could strengthen SIM registration and support South Africa’s developing digital identity framework. Consumers are unlikely to notice immediate changes. ACT has not disclosed how the new verification process will work. 

“We unfortunately cannot comment at this stage as this information will be communicated to consumers through a coordinated consumer awareness campaign,” Batyi said.

Batyi noted the tougher checks will improve security without making mobile access more difficult. “The risks posed by SIM-enabled fraud now extend beyond individual consumers to the financial system and national security,” she said. “The measures do not create unjustifiable barriers to mobile access but simply ensure that the person obtaining the service is the legitimate holder of the identity presented.”

The framework will still operate under the Protection of Personal Information Act (POPIA), which governs how personal information is collected and processed. Batyi said the industry’s long-term goal is to eliminate identity theft in SIM registration, remove pre-registered SIM cards from circulation, and restore trust in South Africa’s mobile identity system.

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