Jeremy’s weekly wrap: Ambition vs accountability: SA’s economic tug of war

This week on Moneyweb@Midday, we tackled several stories that speak to South Africa’s fault lines – crumbling infrastructure, tightening tax enforcement, a gambling epidemic, and a fiscal system bleeding from illicit trade. In a country struggling to balance ambition with accountability, the voices we heard offered sharp insights and stark warnings.

In Gauteng, a R550 million road upgrade has been hijacked by criminal syndicates. Provincial Government Spokesperson Lesiba Mpya told us how the Golden Highway project has been rocked by violence, extortion, and threats from so-called construction mafias, with ward councillors even accused of ordering police off-site. While an interdict is in place, Mpya admitted the province is walking a tightrope balancing safety, project delivery, and demands for inclusive procurement. The state, he insists, will protect law-abiding contractors, but exclusion of small businesses and vulnerable groups cannot continue unchecked.

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

In the tax arena, Sars is switching gears. With R4 billion in new funding and over 1 000 debt collectors being deployed, the tax authority is moving from education to enforcement.

Tax specialist Lee Dlamini described this as a “massive operational scale-up” aimed at recovering the R50 billion lost annually to non-compliance. While this may improve fiscal capacity and tackle unemployment, Dlamini warned of collateral damage. Small businesses and professionals could be blindsided by aggressive audits, especially as Sars leans into AI-driven red flags without necessarily fixing the gaps in its own systems. Checks and balances, she argues, will be critical.

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

Meanwhile, the scale of South Africa’s gambling problem came into sharp focus. Over R1 trillion is bet each year R700 billion on sport alone and according to Old Mutual’s John Manyike, gambling has become a desperate financial crutch for the working poor. With 40% of gamblers doing so to pay off debt, the toll is no longer just economic; it’s emotional, social, and sometimes fatal. Manyike called for tighter advertising rules, age checks, and mandatory contributions from betting companies to fund awareness and rehabilitation efforts before more lives are lost chasing impossible wins.

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

And with South Africa set to host the G20 presidency, economist Sifiso Skenjana sounded the alarm on policy blind spots. While there’s been some progress in curbing illicit trade, the tobacco sector remains a weak link. With 60% of cigarettes sold illicitly, and a proposed tobacco bill that ignores this reality, revenue loss and health risks are mounting. Skenjana says sin tax policy must evolve beyond political theatre – and fast. A more dynamic, risk-based approach could protect both the fiscus and the public, but time is running out.

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

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