.Za price increase 2024

The .ZA Domain Name Authority (Zadna) has declared increases in prices for the co.za, org.za, net.za, and web.za domains. Zadna CEO Molehe Wesi justified the decision by citing a thorough financial assessment and the effects of inflation and currency fluctuations on operational costs.

“This decision follows thorough consultations with industry stakeholders and aligns with current economic developments and operational needs,” says Wesi.

The ZA Central Registry (ZACR) has announced a significant price hike.

Zadna will implement a 5.23% price adjustment in the rate of Billable Transactions for all co.za, org.za, net.za, and web.za domains from 1 October 2024 to 30 September 2025.

It notes that the price adjustment is CPI-linked, and it will increase the registration and renewal fee from R55 to R61 per domain name.

This fee increase will impact domain registrations and renewals, with both being invoiced at the new price. Despite the fluctuation in domain pricing, Xneelo has stated that they will absorb these price increases in order to remain competitive in the market.

Additionally, ZACR has also mentioned that the price increase will affect other ZA domains such as web.za, org.za, and net.za. For resellers and registries looking to register or renew domain names within the .co.za namespace, this change in domain name pricing will need to be taken into consideration for their own domain registration and hosting services.

These .za prices are for bulk buyers and hosting providers.

These prices are for bulk buyers who purchase in large quantities. Hosting providers, on the other hand, will need to carefully assess whether it is economically viable for them to pass on the additional costs to their customers.

Considering the competitive nature of the hosting industry, providers may need to absorb some of the increased expenses in order to remain competitive in the market.

Factors such as price sensitivity among customers, the overall demand for hosting services, and the provider’s profit margins will all play a role in the decision-making process. It is essential for hosting providers to strike a balance between maintaining profitability and keeping their services affordable for customers.

This will trickle down to hosting resellers, and website design companies that resell hosting. As the demand for web hosting services continues to grow, hosting resellers and website design companies that offer hosting packages will also see an increase in business. With more individuals and businesses looking to establish an online presence, the need for reliable and affordable hosting solutions will only continue to rise. 

Future Pricing for .za domains. 

Juan Preuyt from New Perspective Design said: “It’s important to note that these TLDs have not seen a price increase in several years and will make the hosting industry even more competitive than it already is. The implications of an annual increase of 5% to 6% will cause the bottom of the hosting industry to struggle and might limit consumers’ options to bigger players.” 

Zadna also highlighted its expected price hikes for the 2025/26 and 2026/27 financial years. Over the next three years, the price increases for .ZA will be as follows:

• 2024/25 — 5.23%
• 2025/26 — 6.56%
• 2026/27 — 6.15%

“These figures will be confirmed annually in July, based on the prevailing Consumer Price Index (CPI), allowing for industry implementation in October of every year,” says Wesi.

This was long planned with it being strongly opposed by many key players in the hosting industry. 

Zadna also revealed the introduction of the Non-Commercial Development fund, where the ZA Registry Consortium (ZARC) will gather and transfer funds regularly to support non-commercial projects and capacity building.

The decision to proceed with this initiative was driven by individuals with a stake in maintaining the current situation.

Wesi stated that the organization will implement a new policy allowing multi-year registration and renewals for up to five years.

“This additional option will be available alongside the current annual registration system, giving registrants more flexibility and choices,” he explained. 

Zadna aims to roll out the new policy by October 1, 2024, working closely with ZARC and registrars to ensure a smooth transition.