top of page
Search

Understanding Mora Interest in South Africa

Updated: Jan 10


Mora interest is charged when payments are late, and no interest rate was agreed upon. It’s based on the common law right to claim damages for late payments. The Prescribed Rate of Interest Act, 55 of 1975, determines the rate, which is the Repo Rate plus 3.5%.



Key Cases


The Supreme Court of Appeal in Land Agricultural Development Bank of South Africa v Ryton Estates (Pty) Ltd and Others stated that interest is the "life-blood of finance." If not agreed otherwise, the mora interest rate is fixed at the time of default and remains constant.


Other key cases include:

  • Da Cruz v Bernardo (2022): Common law yields to statutory provisions.

  • Davehill (Pty) Ltd vs Community Development (1988): Fixed rate at time of default.

  • Crookes Brothers Ltd v Regional Land Claims Commission (2013): Confirms fixed rate at time of default.


Historical Prescribed Rates

Date Range

Rate of Interest

Gazette No

1 October 1993 – 31 July 2014

15.50% pa

Government Notice No. R.1814 of 1 October 1993

 1 August 2014 – 29 February 2016

9.00% pa

Government Notice No. R.554 of 18 July 2014

1 March 2016 - 30 April 2016

10.25% pa

Government Notice No. R.226 of 4 March 2016

1 May 2016 - 31 August 2017

10.50% pa

Government Notice No. 461 of 22 April 2016

1 September 2017 - 30 April 2018

10.25% pa

Government Notice No. 924 of 1 September 2017

1 May 2018 - 31 December 2018

10.00% pa

Government Notice No. 435 of 20 April 2018

1 January 2019 - 31 August 2019

10.25% pa

Government Notice No. R. 25 of 22 January 2019

1 September 2019 - 28 February 2020

10.00% pa

Government Notice No. R. 1212 of 20 September 2019

1 March 2020 - 30 April 2020

9.75% pa

Government Notice No. R. 397 of 27 March 2020

1 May 2020 - 31 May 2020

8.75% pa

Government Notice No. R.713 of 2020

1 June 2020 - 30 June 2020

7.75% pa

Government Notice No. R 987 of 2020

1 July 2020 - 31 August 2020

7.25% pa

Government Notice No. R 1067 of 2020

1 September 2020 - 30 April 2022

7.00% pa

Government Notice No. R 1182 of 2020

1 May 2022

7.75% pa

Government Notice No. R 2345 of 2022

1 May 2022 -

7.75% pa

Government Notice No. R 2378 of 2022

1 July 2022 - 31 August 2022

8.25% pa


1 September 2022 - 31 October 2022

9.00% pa


1 November 2022 - 31 December 2022

9.75% pa


1 January 2023 - 28 February 2023

10.50% pa


1 March 2023 - 30 April 2023

10.75% pa


1 May 2023 - 30 June 2023

11.25% pa


1 July 2023 - 31 October 2024

11.75% pa

Government Notice No. R 4075 of 2023

01 November 2024 - Ongoing

11.50% pa

Government Notice No. R 2816 of 2024


Understanding these rules helps in navigating financial obligations and avoiding legal disputes.



708 views0 comments

Recent Posts

See All

Comments


bottom of page