South Africa’s reform progress continues to record progress, moving from plans to implementation in sectors including electricity, logistics and water, with Finance Minister Enoch Godongwana emphasising the importance of continuing the reform journey.
Government’s reforms programme is aimed at dismantling barriers to investment, economic growth and employment in South Africa.
“The structural reforms are not abstract policy measures. They affect the daily lives of South Africans. Take the water sector, for example. Poorly maintained infrastructure, high water losses and weak municipal capacity have undermined service delivery.
“Government’s response through the National Water Action Plan focuses not only on infrastructure, but on fixing institutions responsible for delivering water services. The priority is to restore operational performance, strengthen governance and technical capacity, reduce water losses, improve revenue collection and reform the way water infrastructure is financed.
“By addressing both infrastructure and institutional weaknesses, we are laying the foundation for reliable water services and stronger local economies,” Godongwana explained.
The Minister was delivering the Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday.
In the MTBPS documents, National Treasury noted the following progress in key sectors this year:
• Electricity: The wholesale electricity market was launched internally with 32 participants, while Eskom recorded a profit for a second year.
• Logistics: Transnet recorded a profit in the 2025/26 financial year, while the entity published its Revised Network Statement.
• Water: The SA National Water Resources Infrastructure Agency (SANWRIA) board and acting CEO was appointed and the WATERCOM was established.
• Local Government: In September, the Public Service Commission Bill was enacted into law while the eight metro municipalities became part of the Metro Trading Services Reform programme
• Cities and Housing: Passenger rail journeys increased by five times – up from 17 million in the 2021/22 financial year to 101 million in the 2025/26 financial year.
• Visas: The Electronic Travel Authorisation programme is now live, reaching 200 000 applications and allowing for 24-hour approvals.
“In energy…the Department of Electricity and Energy has also published policy guidance on the market design and a revised pricing policy. The work to create a fully independent transmission system operator is progressing well.
“Since the establishment of the task team in March 2026, the President has approved its Phase 1 report, and the detailed transaction structure and implementation plan will be delivered in a second report by year end,” Treasury stated.
The next step for the energy sector is to finalise the trading rules and open the wholesale electricity market externally in 2027.
Logistics
In 2027, eleven private train operators will start running on the freight network.
At the same time, Cabinet has approved the “approach to separating out the Transnet National Ports Authority as an independent entity”.
“Alongside this, the Transport Economic Regulator is working to establish the institution’s governance framework, design regulatory systems and build capacity for full functionality in April 2027.
“The Transnet Rail Infrastructure Manager has published the revised rules for private rail operators after industry feedback as new train operating companies prepare for operations from 2027,” Treasury noted.
Addressing the water crisis
To resolve challenges in the water sector, the National Water Crisis Committee was established this year and is tasked with overseeing the implementation of the National Water Action Plan.
“[SANWRIA] will finance and develop national dams and transfer schemes using its own balance sheet.
“The Water Partnerships Office has been incorporated into the Infrastructure Finance and Implementation Support Agency to unlock additional funding for water projects, with a pipeline exceeding R60 billion now in the financing stage of implementation,” the department said.
Rail
Passenger rail reforms continue to gain momentum with passenger journeys rising more than twofold from about 39 million in 2023/24 to 101 million in 2025/26.
“The improvements largely result from signal modernisation, strategic rolling stock replacement and other infrastructure rollouts.
“The Passenger Rail Agency of South Africa is targeting 232 million passenger journeys in 2028/29,” National Treasury said.
The coal face
In its determination to build a capable state, government has placed particular emphasis on reforms to local government.
This includes what the National Treasury described as “stronger action…to address financial mismanagement in municipalities alongside interventions to improve revenue collection”.
“The reforms…institutionalise financial discipline through amendments to the Municipal Finance Management Act [MFMA].
“They…also support improved infrastructure investment and service delivery, through new public-private partnership regulations as well as by incentivising municipalities to reinvest revenue from water, electricity and waste services into the infrastructure for these services,” the department stated.
Additionally, the assent of the Public Service Commission (PSC) Bill in September strengthens the PSC’s ability to monitor, investigate and intervene in municipalities and “separates political interference from administrative duties”.
Furthermore, the White Paper on Local Government will be launched this week and will strengthen the “regulation of service delivery and professionalise senior appointments”.
“These measures form part of a comprehensive reform programme that works at two levels: structural change to local government institutions, finances and legislation, and governance reform to improve how municipalities manage the delivery of basic services,” National Treasury explained.
The local government reform programme is at different stages of maturity.
“The Metro Trading Services Reform Programme and the Smart Meters Grant Programme are in implementation. The White Paper and the Public Service Commission Act are now moving to implementation.
“The local government fiscal framework review, the MFMA review, the Water Services Amendment Bill and digital transformation interventions are in design, drafting or processing,” the department stated. – SAnews.gov.za
