Payment Terms Legislation In South Africa

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South Africa

Please see below for a summary of payment terms in South Africa and the various industries across which payment term legislation appears.

To access the complete international payment terms data, download the international payment terms whitepaper.

Industries Laws Codes Notes Interest Rate
Government
Comm_terms_law
Construction
Manufacturing
Retail_agriculture
Services

Laws

Treasury Regulation 8.2.3 requires the government to pay suppliers within 30 days.

Government
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Codes

Run by the National Small Business Chamber of South Africa the Prompt Payment Code champions the importance of big business and government paying small suppliers within 30 days.

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Notes

The Construction Industry Development Board Act limits ‘pay when paid’ clauses and provides for adjudication and resolution time limits but does not specify a maximum term.

Construction
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Interest Rate

Default interest for late payments is the Prescribed Rate of Interest which is set periodically by the Minister of Finance. As at 1 July 2023 the rate was 11.75%. The National Credit Act also sets out a number of criteria for maximum interest under incidental credit agreements which apply to late payment of invoices.

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