Slip of the finger? A CEO prepped an email to other executives on how they’re planning mass retrenchments, but then accidentally sent it to the whole company. Err, awkies… 😬

In Today’s Open Letter

Paying taxes should be smooth, effortless and cost way less in SA – that’s the real reason why Octoco and Twofold Capital bought out TaxTim…

SA’s ability to collect taxes weakened significantly in 2024, mainly due to worsening economic conditions, which even SARS’s auto assessments couldn’t fix. And with an R800bn collection shortfall by mid-2025, SARS is redoubling its efforts.

But this is nothing new, SA relies on an extremely concentrated tax base of just 1.66 million South Africans earning more than R500k a year to carry 76.2% of the country’s income tax burden – just 2.7% of the population; forcing one of the highest tax rates in the world. 

And if there’s one thing we can say with almost 99.9% certainty, SARS’s eFilling tech isn’t helping change the picture either.

But politics and sentiment aside, a cornerstone of a well-functioning country is efficient tax collection. And with a growing number of taxes and complexities, this often means that the one paying tax has to pay additional fees to service providers just to do the filing properly.

Making the already tax burden on individuals and small businesses even more, which could even lead to tax avoidance altogether.

So there’s a great opportunity to make tax submissions simpler and more affordable.

Which is why we were so intrigued to hear that Octoco and Twofold Capital bought TaxTim.

What’s the story?

Founded in 2011 by Evan Robinson (technical) and Marc Sevitz (tax pro), the idea behind TaxTim was to create an online tax-filing assistant, fully integrated into SARS, making it a new “user-friendly” tax interface.

Over the years, they helped process over R700 million in tax refunds, building trust and partnerships with the likes of Momentum, FNB eBucks, Sanlam Reality, Old Mutual Rewards and Capitec.

What’s the play?

For many individuals, taxes have become more complicated; more people earn additional income through side gigs.

For one, social media influencers, who are often not that accounting-savvy, are a sector SARS is starting to focus on heavily for under-reporting. Then there’s crypto, which many people now actively invest in. It’s a lot of data, and for many, a lot of unknowns.

So imagine an AI-powered tax-friend that can look at all your data and help you file more accurately, with less effort.

We spoke to Octoco CEO and founder Henirich De Lange, who says the first order of business is to grow by modernising the product.

It was built in a pre-AI era, and upon closer examination, there are some significant opportunities to unlock together with Octoco AI.

Helping with taxes is a great application of AI, and with a great headstart on tech and userbase, buying TaxTim might just be a very smart move… We’re watching this space…

What SME has time to file every tax receipt?

Huppi helps small and micro businesses run their whole back office on WhatsApp with 3 power features:

✅ Snap a receipt in WhatsApp, Expensabot extracts VAT and files it by category for tax
✅ Create invoices in chat & get a branded PDF with a payment link in seconds
✅ Upload a bank statement, and it converts and categorises for reconciliation.

No portals. No month-end panic. Just messages that keep you legal and paid.

It’s real SME empowerment that lives right inside WhatsApp.

What would you build on WhatsApp today?

🍎 New Apples in Time for Christmas. Apple announced a range of new products, including the new iPhone 17, which, for the first tim,e includes an Air model that is the thinnest iPhone ever at only 5.6mm thickness.

🧑🏼‍💻 Tech Savvy Moves. SA’s State Information Technology Agency is testing a Citizen “Super App” to jazz up ID verification, aiming to turbocharge public service delivery with sharp digital tools. Looks like Gov wants to go tech-savvy…

🤖 Social Media's Botpocalypse. Social media feels faker than it looks, according to Sam Altman, and it’s all thanks to bots. So was he not around for the influencer botpocalypse of the early 2010s?

🧀 SPAR’s Swiss Offload. SPAR is selling its Swiss operations for R1.03 billion, eyeing a narrow focus on core regions. Where will they get their cheese and Toblerone from now on?

🛒 Walmart’s SA Loading… Walmart is set to open its first branded stores in South Africa by 2025, promising groceries, apparel and tech with a local twist. The retail giant aims to merge its famous low prices with South African culture, teaming up with local suppliers and entrepreneurs. Cannot wait for the local flavour of Walmart pics...

✅ The Stack. Founders need reliable tools and suppliers. That’s why our Founder’s Stack gives you the best in IP offshoring and global market access with Finance Isle of Man, all your VC and startup legal sorted by Dommisse Attorneys, and loads more vital startup tools & services.

Yesterday, we showed you how Squirrel Away’s empowering investments as gift options for SA kids, asking what you’d rather gift. Most are on board for the savings/investment wagon…

⬜️⬜️⬜️⬜️⬜️⬜️ 🧸 Another toy that’ll break in a week (0)

🟨⬜️⬜️⬜️⬜️⬜️ 💸 Cold hard cash (11%)

🟩🟩🟩🟩🟩🟩 📈 An investment they can open at 18 (59%)

🟨⬜️⬜️⬜️⬜️⬜️ ❤️ Something useful like sports equipment (19%)

🟨⬜️⬜️⬜️⬜️⬜️ ✈️ A trip or experience to remember (11%)

Your 2 cents…

Hey, Carmen, Squirrel Away is an app via either the App Store or Google Play. 🙌

Indeed, Robert, we wouldn’t fight the urge to give a baby a tangible toy, either. Hmm, but maybe also squirrel some money away under Mom and Dad’s care. 🐿️

Win R300k for SME excellence. Lula and News24 are awarding R300k in various categories in the inaugural SME Excellence Awards. All you need to enter is a 12-month track record and annual turnover of R500k+. More details here.

SA Seed to Series? Today is the deadline for Google for Startups Accelerator Africa (SA-only cohort) applications. This 3-month hybrid with expert mentoring, up to $350’000 Cloud credits and R1m per startup. Apply by today (10 September) here.

Looking to raise $50’000? The MEST Africa Challenge 2025 is a pitch competition for early-stage startups in FinTech and digital value chains — from AgriTech to credit innovation. Enter before 26 September right here.

Need to get funding-ready? Investec and Outsourced CFO’s Founders Foundation Accelerator Programme is now accepting new applications: With over R79 million raised, this is ideal for SMEs of 2+ years and R1m+ annual revenue looking to scale. Apply here.

Women-led and ready to scale? Naspers & Prosus’ Tech FoundHER Africa Challenge offers $100’000 in equity-free grants, senior mentorship and JSE stage time (19 Nov) for revenue-generating startups with a woman founder. Apply here.

Want to promote your event/programme here? Let us know.

🛠 Tool to Try: LightX Editor is AI-powered photo edits (bg removal, headshots, retouching) + generative art for fast, pro results.

🤔 That’s Interesting: J.P. Morgan tightly controlled his photos; reportedly raging at unretouched shots, partly due to his rhinophyma condition (a bulbous, purplish nose).

🔥 Next Level: Watch this artist sculpt the Great Wall, on a wall, with cement.

🍔 Hack: Adding before:2020 to YouTube searches filters out Shorts and surfaces classic results.

🌐 Wow Site: UnmetNeeds is where people post ideas for tech they wish existed, hoping to match with builders who can make them real.

Come join SA’s premium community for founders and startup operators at The Founder Collab.

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