The South African Human Rights Commission (SAHRC) advocates for a complete ban on cash payments for copper scrap as part of intensified measures against cable theft and the destruction of public infrastructure.
In a recently published analytical review, the SAHRC proposes that all transactions involving copper scrap be conducted exclusively in electronic format, requiring payment records to be kept for at least five years.
This proposal comes amid illegal copper trade, which costs South Africa over 45 billion rand annually, according to a study by Genesis Analytics commissioned by the Department of Trade, Industry and Competition.
Furthermore, Transnet has recorded significant losses from railway cables, and Eskom reports that thefts and vandalism continue to threaten energy supply and public safety.
The SAHRC argues that the use of cash complicates the tracking of stolen copper's origin and the flow of funds from its sale. The Commission insists on implementing electronic payments to create a transaction trail that regulators and law enforcement can use to identify suspicious activity.
The Commission stated: 'Cash transactions reduce traceability and can facilitate the movement of stolen metal through ostensibly legal operations. The Commission recommends that amendments to the SHGA include a mandatory requirement for cashless payment for all copper scrap transactions, with electronic records retained for a minimum of five years.'
Bill aimed at closing regulatory loopholes
This call came amidst government efforts to tighten control over the second-hand goods and scrap metal industry. In August, the Cabinet approved a draft Amendment Bill to the Second-hand Goods Act of 2026 for public comment.
The proposed bill aims to address several regulatory gaps related to infrastructure vandalism, cable theft, and illegal scrap metal trading.
The SAHRC emphasized the need for the immediate publication of this Act for public discussion and demanded that regulations under the Second-hand Goods Act be finalized with a clear implementation schedule by the end of December 2026.