South Africa has banned the cash sales of all scrap metal. New regulations which came into effect as part of a phased approach to combat metal theft require all transactions to be concluded via electronic payment methods, such as Electronic Fund Transfers (EFT). 

Key Details of the Ban

Payment Method: All scrap metal transactions must use trackable electronic payment solutions (EFTs, etc.). Cash payments are strictly prohibited.

Purpose: The ban is a key government measure aimed at combating the high levels of infrastructure theft (e.g., copper cables from Eskom, Transnet, and municipalities) by making it easier to trace transactions and the origins of the material.

Implementation: The prohibition of cash transactions was part of "Phase 2" of the government's policy implementation actions, which also involved amendments to the regulations under the Second-Hand Goods Act, 2009 (SHGA).

Enforcement: Buyers and sellers found in possession of scrap metal not backed by an electronic payment record are subject to penalties, including potential withdrawal of their registration.

Registration: The new rules also mandate stricter registration requirements for all traders in scrap metal. 

The measure is a significant part of the government's broader strategy to disrupt criminal syndicates profiting from stolen public infrastructure.