Activation fee on new contracts?

Zewp

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I'm looking for a new contract as my phone is getting a bit long in the tooth, but I see Vodacom charges a R202 activation fee. What the hell is this? Certainly it can't cost them R202 to activate the sim card? Prepaid sim cards are activated free of charge, so what is this fee for or is it just more money-grubbing?
 
The activation fee is R97.00 and is charged to your Vodacom account. The balance is what you pay for the sim in store. If you convert a prepaid number to contract then you do not pay for a new sim.
 
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