Dr Leon Schreiber Welcomes Withdrawal of Legal Challenge to OVS Fees

Dr Schreiber described the withdrawal as an opportunity to build meaningful partnerships with the telecommunications sector, accelerating South Africa’s digital modernization efforts.

South Africa’s Minister of Home Affairs, Dr Leon Schreiber, has welcomed the decision by the Association of Comms and Technology (ACT) to withdraw its legal challenge against revised fees for the department’s Online Verification Service (OVS), marking a key moment in the country’s digital transformation journey.

The withdrawal, formally communicated to the Gauteng High Court on 8 April 2026, ends a dispute that began in December 2025 when ACT contested the updated pricing structure for private sector access to the national Population Register verification system.

From Legal Dispute to Strategic Collaboration

The development signals a shift from litigation to collaboration, with several mobile network operators—previously aligned with ACT—now engaging with the Department of Home Affairs to support digital identity initiatives.

This includes cooperation on:

• Digital Identity (Digital ID) systems

• SIM card registration frameworks

• Broader identity verification solutions

Dr Schreiber described the withdrawal as an opportunity to build meaningful partnerships with the telecommunications sector, accelerating South Africa’s digital modernization efforts.

Fee Reform: From Unsustainable Model to System Overhaul

The OVS, operational since 2013, had not seen a fee revision for over a decade. Prior to July 2025, private sector users paid just 15 cents per real-time verification, a pricing model that proved unsustainable.

Key challenges under the old system included:

• Severe underfunding, limiting system maintenance and upgrades

• Excessive usage, driven by low costs

• High failure rates, with over 50% of verification attempts failing by 2025

• Slow processing times, often taking hours even for successful requests

To address these issues, the government introduced a revised pricing structure effective 1 July 2025, following public consultation and approval by the Minister of Finance under the Identification Act.

The new structure includes:

• R10 per real-time verification

• R1 per off-peak batch verification for private users

Public sector access remains free of charge, ensuring continuity in essential government services.

System Transformation: From Breakdown to High Performance

The fee correction enabled a comprehensive upgrade of the OVS, transforming it into a high-performance digital infrastructure.

According to the Department of Home Affairs:

• System uptime has improved to 99%

• Response times have been reduced to seconds

• Reliability and service quality have significantly increased

Dr Schreiber noted that the reforms have effectively replaced a system “on the verge of collapse” with a “world-class verification platform.”

Enabling Financial Inclusion and Digital Services

The upgraded OVS is already delivering tangible benefits across sectors, particularly in banking and financial services, where identity verification is critical.

A new digital partnership with the banking sector has led to the rapid expansion of Smart ID services to 110 bank branches within just one month, with further rollout planned nationwide.

This integration is expected to:

• Improve access to identity services

• Reduce bureaucratic delays

• Enhance financial inclusion

Digital Identity: The Next Frontier

The resolution of the dispute clears the path for broader implementation of Digital ID systems, a cornerstone of South Africa’s digital governance strategy.

Collaboration with telecom operators is expected to play a key role in:

• Secure identity verification for SIM registration

• Expanding digital public infrastructure

• Enhancing cybersecurity and fraud prevention

A Turning Point for Public-Private Digital Partnerships

The withdrawal of ACT’s court application reflects a growing alignment between government and private sector stakeholders, particularly in sectors where data, identity, and digital services intersect.

Dr Schreiber expressed optimism that this renewed cooperation will accelerate innovation and service delivery:“This creates an opportunity for telecommunications companies to play a meaningful role in our digital transformation, which is already delivering real benefits to citizens.”

Strengthening the Foundation of a Digital Economy

As South Africa advances toward a more integrated digital economy, reliable identity verification systems like OVS are becoming critical national infrastructure.

The reforms not only ensure financial sustainability and system efficiency, but also lay the groundwork for:

• Digital governance reforms

• Improved service delivery

• Inclusive access to public and private services

With legal hurdles now cleared and partnerships strengthening, the OVS upgrade marks a significant milestone in South Africa’s journey toward a secure, efficient, and citizen-centric digital ecosystem.