Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Home affairs pulls the plug on the green ID book - Leon Schreiber

      Home affairs pulls the plug on the green ID book

      1 October 2026
      South Africa's digital ID is here - but you can't have it yet - Leon Schreiber

      South Africa’s digital ID is here – but you can’t have it yet

      1 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      Eskom waives rooftop solar fees, but the registration fight isn't over

      Eskom waives rooftop solar fees, but the registration fight isn’t over

      1 October 2026
      Absa is moving cash out of its branches

      Absa is moving cash out of its branches

      1 October 2026
    • World
      BMW restructuring plan bets on AI and new models

      BMW restructuring plan bets on AI and new models

      1 October 2026
      OpenAI's rogue agent problem keeps getting bigger - Sam Altman

      OpenAI’s rogue agent problem keeps getting bigger

      28 September 2026
      The new battle over the desktop

      The new battle over the desktop

      23 September 2026
      AMD is now worth a trillion dollars - Lisa Su

      AMD is now worth a trillion dollars

      22 September 2026
      Anthropic weighs new model launch to blunt OpenAI's Astra surge - Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman

      Anthropic weighs new model launch to blunt OpenAI’s Astra surge

      21 September 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
      TCS | Octotel's Trevor van Zyl on the fibre merger question

      TCS | Octotel’s Trevor van Zyl on the MetroFibre merger question

      16 September 2026
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      W&W | Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
    • Opinion
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Regulating AI: apply the laws we have first - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
      What Revolut can and cannot take from South Africa's banks - Pambos Soteriades

      What Revolut can and cannot take from South Africa’s banks

      15 September 2026
      The end is nigh, and the shares go on sale in October - Duncan McLeod

      The end is nigh, and the shares go on sale in October

      14 September 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Jannie van Zyl » South African tech’s compounding debt problem

    South African tech’s compounding debt problem

    It’s the biggest liability on the South African tech balance sheet – and it keeps compounding.
    By Jannie van Zyl29 July 2026
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    South African tech's compounding debt problem

    Every shortcut a tech company takes is a loan. That’s the whole idea behind “technical debt”, a phrase programmer Ward Cunningham coined more than 30 years ago and the smartest bit of financial language software ever borrowed.

    In my last column, I argued that we sell products before we build them. This is what happens to those shortcuts after the deal closes: they don’t go away. They sit in the system, charging interest, until you can’t make the repayments.

    This is the second of three columns on the short-termism trap: how one habit – picking the quick win over the durable one – works its way through a tech business until it reaches the one place you can’t afford to lose ground: your customers.

    Technical debt is the cost of choosing the quick fix over the right one: the code written to hit a demo date, the architecture nobody revisited once it “worked”, the system never upgraded because the people who understood it left, the integration bolted on instead of designed in, the culture of “let’s just do something quick”.

    Each shortcut buys you time today. Each one taxes every job that touches it tomorrow. And the tax is real even when you can’t see it – which is most of the time, because it never shows up as a line item. It shows up as everything slowly getting harder. It’s the only debt you can carry for years without recording it. Right up until it records everything else.

    A messy system is hard to change, so the next change gets done quick and dirty, too

    It feeds itself. A messy system is hard to change, so the next change gets done quick and dirty, too – because doing it properly means untangling the last mess first. Complexity breeds complexity, and every new feature needs another hack piled on the last.

    The engineers who could fix it are too busy keeping it alive. A team can burn most of its time just stopping a fragile system from falling over, with almost nothing left for the work that grows the business. That’s the compounding. The debt doesn’t only grow. It eats your ability to pay it back.

    How to spot it

    You can read a company’s technical debt in its symptoms long before anyone says the words. Costs that should drop with scale go up instead. Simple features take absurdly long. Releases become things people dread, not routines they trust. Good engineers leave – nobody enjoys spending their days cleaning up shortcuts they didn’t take – and they walk out with the only memory of why the system is the way it is. Which makes the debt worse.

    South Africa has a rich collection:

    • Our banks run some of the most advanced digital services anywhere on top of core systems written in Cobol decades ago – proof you can service debt for a very long time, at enormous and permanent cost.
    • Our public sector IT is a museum of the same disease: systems that can’t talk to each other, budgets that fund the build but never the upkeep, and the same lesson every time – the cheapest bid carried the most expensive debt.
    • Telecoms billing is some of the most debt-laden software on Earth, because we kept bolting on new ways to bill for things the network was never built to sell.

    A leadership problem, not an engineering one

    Technical debt is a leadership problem wearing an engineering costume. It builds up because the incentives that create it sit above the engineers, who solve the problem in front of them. Debt is invisible on the financials, so it’s easy to defer. The executive who defers it usually gets promoted before the bill arrives. The one who insists on paying it down has to defend a quiet quarter with nothing shiny to show for it.

    As a result, taking on debt gets rewarded. Paying it down gets you blamed for going too slowly. That asymmetry – not a shortage of good engineers – is why there’s so much of it about.

    To be fair, some debt is smart. Taking a deliberate shortcut to test whether anyone even wants the thing is good business – building it perfectly first would be waste. Not all debt should be paid off, just like not all financial debt should. The trick is knowing which is which.

    Taking on technical debt gets you promoted. Paying it down gets you blamed for going slow

    The problem isn’t debt. It’s unmanaged debt – taken without a decision, tracked by nobody and serviced by accident. Smart debt is a choice you can see on a list, with a plan to pay it back. Most technical debt is neither. It’s the residue of a hundred small panics nobody wrote down.

    The fix isn’t a heroic rewrite. Those usually just refinance the debt on worse terms. Rather, it’s the dull discipline of treating quality as a standing commitment, not a phase:

    • Put real capacity into refactoring and upgrades every cycle;
    • Make the cost of the debt visible to the people holding the budget; and
    • Refuse the shortcut at the point of sale, where – as I argued last time – most of it is born.

    Defending the long term against the quarter is leadership’s job, because nobody else in the building is paid to.

    Sometimes the discipline is just walking away. When it’s clear a customer only wants a quick fix – and will blame you for the mess those hacks leave behind – the right answer is a polite “no thanks”. Business is a partnership. If one side is only looking to get one over on the other, there’s no deal worth taking.

    The author, Jannie van Zyl
    The author, Jannie van Zyl

    And here’s the sting. The final bill for technical debt is rarely paid by the company alone. It’s paid by the customer – a product that’s slow to improve, quick to break and expensive to trust. Customers don’t send reminders the way creditors do. They just, quietly, start to leave. Which is where this series goes next.

    • The author, Jannie van Zyl, has spent more than three decades in technology – founding several companies and holding senior positions in some of the industry’s largest. He’s a leading voice on innovation and the future, and writes here under his own name
    • Read more pieces by Van Zyl on TechCentral
    • Subscribe to TechCentral’s daily newsletter
    • Get breaking news alerts on WhatsApp
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Jannie van Zyl
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleRussia charges Telegram founder with terrorism
    Next Article Radical rethink for South Africa’s national AI policy

    Related Posts

    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Company News
    Cloud and AI won't deliver value on their own, executives warn

    Cloud and AI won’t deliver value on their own, executives warn

    1 October 2026
    Dell Technologies Forum 2026: what to expect in Johannesburg

    Dell Technologies Forum 2026: what to expect in Johannesburg

    1 October 2026
    What Smollan learnt moving 9 000 users to Google Workspace - Digicloud Africa

    What Smollan learnt moving 9 000 users to Google Workspace

    1 October 2026
    Opinion
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026
    The steam engine lesson AI doomsayers keep missing - Sam Clarke

    The steam engine lesson AI doomsayers keep missing

    28 September 2026
    Regulating AI: apply the laws we have first - Dirk de Vos

    Regulating AI: apply the laws we have first

    21 September 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Home affairs pulls the plug on the green ID book - Leon Schreiber

    Home affairs pulls the plug on the green ID book

    1 October 2026
    South Africa's digital ID is here - but you can't have it yet - Leon Schreiber

    South Africa’s digital ID is here – but you can’t have it yet

    1 October 2026
    Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

    TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

    1 October 2026
    Eskom waives rooftop solar fees, but the registration fight isn't over

    Eskom waives rooftop solar fees, but the registration fight isn’t over

    1 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter