Jeremy’s weekly wrap: From Sars to Eskom – the barriers to growth

Key interviews this week on Moneyweb@Midday traced a clear and uncomfortable line through South Africa’s economic and political landscape.

From tighter tax enforcement and stalled energy reform to political instability and rising labour costs, conversations revealed a country facing growing pressure points where delay, denial or poor execution now carry real consequences for growth, jobs and confidence.

One of the sharpest warnings came from Roxanna Naidoo, head of global strategy at tax consultancy Latita Africa, who explained how the South African Revenue Service (Sars) has quietly but decisively expanded its reach into offshore income.

Naidoo said Sars is no longer playing catch-up with expatriate taxpayers. Through international information-sharing agreements and increasingly sophisticated data analytics, the tax authority is already receiving detailed financial information from foreign institutions. This includes income flows, account balances and ownership structures linked to South African tax residents.

Her key message was that many expats continue to confuse physical absence with tax non-residency, leaving themselves exposed to backdated assessments, penalties and interest. As enforcement becomes more targeted and data-driven, the margin for error or non-disclosure is shrinking rapidly.

You can also listen to this podcast on iono.fm here.

Energy reform emerged as another fault line. Rudi Dicks, head of the project management office in the Presidency, acknowledged that Eskom’s long-promised unbundling remains bogged down by complexity and risk. While policy direction is clear, separating generation, transmission and distribution is proving far harder in practice.

Eskom’s debt burden, ageing infrastructure and operational fragility mean reform must be carefully sequenced to avoid destabilising the grid or worsening fiscal exposure. Dicks highlighted transmission reform as the most critical step, yet institutional capacity and funding constraints continue to slow progress. The result is an energy system still unable to provide certainty to investors or industry.

You can also listen to this podcast on iono.fm here.

Political instability was placed under the spotlight by Sanusha Naidoo, political analyst at the Institute for Global Dialogue, following John Steenhuisen’s decision not to seek another term as leader of the Democratic Alliance.

Naidoo argued that the move reflects more than leadership fatigue or electoral disappointment. Instead, it exposes unresolved tensions inside the DA over ideology, strategy and coalition politics.

With a crowded leadership contest now under way, the party faces difficult questions about unity, direction and relevance. Whether it can reconcile internal divisions while presenting a credible alternative to voters remains uncertain.

You can also listen to this podcast on iono.fm here.

Labour market pressures rounded out the week’s theme. John Botha, Joint CEO of Global Business Solutions, warned that wage inflation continuing to outpace productivity growth poses a serious threat to employment.

Businesses facing rising labour costs without corresponding efficiency gains are increasingly incentivised to automate rather than hire. Botha stressed that productivity improvements require long-term investment in skills, management and technology, but without that progress, wage pressure risks eroding competitiveness and deepening unemployment.

You can also listen to this podcast on iono.fm here.