Operation Vulindlela (OV) is making strides in the implementation of reforms in various sectors in South Africa.
This according to the 2026 Quarter 1 report released on Friday.
The reform implementation programme is a joint initiative of the National Treasury and the Presidency aimed at accelerating structural reforms to achieve rapid and inclusive economic growth, improve service delivery and strengthen state capability.
“This quarter saw continued progress in advancing reforms to improve the performance of network industries, address challenges in local government, and create an enabling environment for investment.
“While the global economic environment remains uncertain, sustained implementation of structural reforms is improving South Africa’s competitiveness, reducing constraints to growth, and laying the foundations for higher levels of private investment and inclusive economic growth,” the report read.
Electricity and freight sector reforms
Progress in these sectors continued to gather pace with progress noted in the establishment of a competitive South African electricity market.
The first phase of the Eskom Restructuring Task Team’s (ERTT) work has been completed with its report on the establishment of an independent state-owned transmission entity endorsed by President Cyril Ramaphosa.
“This is a critical step to ensure that the restructuring of Eskom is conducted in a manner that minimises financial, operational, and fiscal risk while maintaining energy security and advancing the objectives of electricity sector reform to reduce the high cost of electricity.
“Government remains focused on completing the transition to a competitive electricity market by launching the South African Wholesale Electricity Market, with key steps taken to establish a regulatory framework for the market,” the report read.
On the freight front, institutional reforms to increase private sector participation are advancing.
“Progress during the quarter included the publication of the latest iteration of the Network Statement to enable access to the freight rail network for multiple operators, conclusion of Rail Access Agreements with 11 train operating companies, development of an implementation plan for the corporatisation of the Transnet National Ports Authority, and finalisation of the draft National Rail Bill to establish a modern legislative framework for rail reform,” the reported noted.
Water and sanitation reform
Last week, President Cyril Ramaphosa unveiled the National Water Action Plan aimed at ensuring the delivery of running water for all South Africans, regardless of their location.
“The establishment of the National Water Crisis Committee [WATERCOM] and publication of the National Water Action Plan provide a coordinated framework to address South Africa's water challenges.
“Progress was also made in operationalising the South African National Water Resources Infrastructure Agency, advancing the Water Services Amendment Bill, implementing the Revised Raw Water Pricing Strategy, and expanding the pipeline of infrastructure projects through the Water Partnerships Office and the newly established Infrastructure Finance and Implementation Support Agency [IFISA],” the report highlighted.
Visa and immigration reform
South Africa’s visa and immigration reforms continue to modernise and now offer better support to tourism, investment and skills attraction.
The expansion of the Electronic Travel Authorisation system is now underway.
“Phase II of the Trusted Employer Scheme was launched to enable all qualifying employers to participate, and progress was made in implementing new visa programmes to support business events, tourism and the creative industries.
“Government also advanced the redevelopment of major land ports of entry through public-private partnerships to improve the efficiency of cross-border trade and travel,” the Q1 reported noted.
Practical measures
Local government reform – aimed at improving service delivery and strengthening municipal governance – is also gathering pace.
“The first cohort of metros is now implementing reforms through the Metro Trading Services Reform Programme to improve the governance and performance of municipal trading services.
“Progress was also made towards finalising the White Paper on Local Government, the Municipal Finance Management Act Amendment Bill, the review of the Local Government Fiscal Framework, and preparations for implementing the expanded mandate of the Public Service Commission in local government,” the OV report stated.
Meanwhile, practical interventions to improve access to affordable housing and address spatial inequality are also being developed in furtherance of spatial integration and housing reform.
“Progress was made towards developing demand-side and capital subsidy programmes to support investment in affordable housing, releasing strategically located public land for housing development, and addressing the title deeds backlog.
“In parallel, PRASA made further progress in restoring passenger rail services and expanding the availability of rolling stock, supporting improved urban mobility and economic inclusion,” the report highlighted.
Turning to digital public infrastructure reform, the report noted accelerated implementation of the:
- MyMzansi platform
- The MzansiXchange data integration layer
- A digital identity system
- The payments modernisation programme
“During the quarter, implementation focused on establishing the technical and governance foundations required to deliver integrated, citizen-centred digital services while strengthening interoperability across government systems,” the report said.
The report acknowledged that some areas have borne “uneven progress” however, as implementation gathers pace, more can be achieved.
“With increasing emphasis on establishing new institutions, finalising enabling legislation and regulations, reforms can be expected to translate into tangible improvements in infrastructure investment, service delivery and economic performance.
“Progress in some areas has been uneven and, in certain instances, slower than initially anticipated due to the complexity of institutional reforms and the need to align multiple stakeholders.
“As implementation enters a more mature phase, the focus will increasingly shift towards accelerating delivery, resolving remaining bottlenecks, and ensuring that reforms translate into measurable outcomes that strengthen South Africa’s competitiveness and support higher, more inclusive economic growth,” the Q1 report read. – SAnews.gov.za
