Bad news for anyone renewing their car licence in South Africa

The number of vehicle licence disc renewal services available to South African motorists has declined in recent years.

The long and tedious process of renewing licence discs at the country’s Driving Licence Testing Centres (DLTCs) previously created an opportunity for several third-party providers to enter the space.

These private companies offered a seamless way for motorists to renew their licence discs, offering to handle the renewal for those willing to pay extra for the convenience.

However, many of these companies have discontinued their services over the last four years, including Shoprite, PayCity, Pick n Pay, and the South African Post Office.

This is because the Road Traffic Management Corporation (RTMC) launched its own online renewal service in 2022 with lower prices.

While some companies ended their service because it was no longer competitive, others took advantage of a different strategy.

Most notably, FNB became the RTMC service’s payment gateway. The bank also used the new facility to reduce the cost of its own offering.

It slashed its licence disc renewal fee from R199 to R99 in 2023, and later implemented a promotional offer of R69 in 2024.

While the R69 fee was initially set as a limited-time promotion, it was extended multiple times and only came to an end on 30 June 2026, reverting to the original R99 price.

FNB told our sister publication MyBroadband that demand for the service remained strong despite the price increase.

“Since the return of standard pricing on 1 July, we have not seen a material decline in usage, reinforcing the value customers place on convenience and ease of use,” FNB CEO Clair Brenner said.

“In addition to a fully digital end-to-end renewal experience, customers have the option to pay using eBucks, providing added flexibility and value.”

The bank revealed that roughly 224,000 licence disc renewals were done on the service in 2024. FNB customers also redeemed R10.8 million in eBucks using the service.

New vehicle licence disc tax to pay for the Road Accident Fund

Earlier this year, Transport Minister Barbara Creecy announced that her department plans to introduce a new tax on motorists to pay for the Road Accident Fund (RAF).

The RAF is the state-owned entity responsible for compensating victims of road-related accidents. It is currently funded by a R2.25 per litre levy placed on every litre of fuel sold in South Africa.

It receives roughly R45 billion per year from the RAF Levy; however, the entity is in severe debt from years of financial mismanagement.

The RAF’s revenue is also expected to decrease over the coming years as hybrid and electric vehicle sales continue to grow in South Africa, leading to a drop in fuel sales.

Because of this, the Department of Transport wants to introduce a new tax to capture revenue from all road users as they move away from traditional combustion engine cars.

This tax would take the form of a new fee linked to vehicle registrations and licence disc renewals.

The announcement has been heavily criticized by civil action groups and political parties, who argue that motorists are already overtaxed and that the department should fix the RAF before pouring more money into a leaky bucket.