In an ongoing effort to grow the economy, government will continue to implement growth enhancing structural reforms as part of Operation Vulindlela.
“Madam Speaker, a bigger, faster-growing economy, and the larger fiscal resources that come with it, are the key to building up the fiscal room we need to meet more of our developmental goals,” Minister of Finance, Enoch Godongwana, said on Wednesday during the re-tabling of the 2025 Budget Review, in Parliament.
Through the first phase of Operation Vulindlela, bold and far-reaching reforms were implemented in the network sectors and the visa regime.
“As a result, numerous economic bottlenecks have eased, new investments unlocked, and the growth potential of the economy enabled. Yet the economy still faces constraints,” the Minister said.
Operation Vulindlela is a joint initiative of the Presidency and the National Treasury to accelerate the implementation of structural reforms and support economic recovery.
The unit monitors progress and actively supports implementation. Its aim is to fast-track the implementation of high impact reforms, addressing obstacles or delays to ensure execution on policy commitments.
The first phase of Operation Vulindlela aimed to reduce power cuts, fix the transport system, lower data costs, increase water supply, attract skills and support tourism.
The second phase of Operation Vulindlela, launched by President Cyril Ramaphosa earlier this month, will not only prioritise new areas for implementation but will also deepen the implementation of current reforms.
Upcoming reforms will focus on making it easier to find work and hire people – particularly by addressing spatial inequalities, using cities to drive economic activity and improve municipal service delivery.
The second phase will therefore focus on the following areas:
- Seeing-through existing reforms in energy, water, logistics and in the visa regime.
- Improving the performance of local government. This includes professionalising utilities, appointing suitably qualified people to senior positions, and reviewing the local government fiscal framework.
- Harnessing digital transformation, in order to drive the adoption of digital technologies in government and build digital public infrastructure for use by all South Africans.
- Addressing the apartheid legacy of spatial inequality. Reforms will include changes to housing policy and accelerating the release of publicly owned land and buildings. This will also entail clearing the backlog of title deeds for affordable housing, and a comprehensive regulatory review aimed at removing barriers to the development of low-cost housing.
READ I Phase two of Operation Vulindlela to further drive reforms, economic growth
“Tackling these structural constraints will ensure that impediments to faster growth are removed,” the Minister said. - SAnews.gov.za
