South Africa’s Economic Reform Agenda Picks Up Speed

By DSD News Reporter.

• President says progress on Operation Vulindlela will improve growth and job creation.
• Reforms in energy, logistics, water, and visas already showing positive results.
• New phase focuses on boosting infrastructure investment and improving local government service delivery.

Government’s flagship economic reform initiative, Operation Vulindlela, is steadily transforming South Africa’s economic landscape, laying the foundation for faster, more inclusive growth. That’s according to President Cyril Ramaphosa, who released an update last week highlighting key achievements and outlining the next wave of reforms aimed at removing long-standing constraints to growth.
Launched during the Sixth Administration, Operation Vulindlela was designed to target bottlenecks that have held back the economy; particularly in energy, rail, ports, digital infrastructure, and the visa regime. “We have made significant progress since then in clearing these obstacles with a clear view to enhance economic growth,” said the President.
Energy reform has already made a difference, with a noticeable reduction in load shedding over the past year. This progress is attributed to reforms that unlocked private investment in electricity generation. “We are moving quickly towards a competitive electricity market,” the President said, explaining that this would introduce consumer choice and lower energy costs. Plans are also under way to establish an independent Transmission System Operator within five years.
In rail, the establishment of a separate Rail Infrastructure Manager within Transnet is a major step forward. The unit has received 98 requests from private operators seeking access to the freight rail network signalling growing momentum towards open competition. A Private Sector Participation Unit housed at the Development Bank of Southern Africa will help fast-track further investment into rail and port logistics.
Another standout success is in the telecommunications sector. Reforms have significantly lowered the cost of mobile data, and more affordable connectivity is expected to unlock new opportunities, especially for small businesses and rural communities.
The President also noted meaningful strides in visa reform. Turnaround times for visa applications have improved, the backlog has been reduced, and an Electronic Travel Authorisation system is due to go live by September 2025. This will make it easier for tourists and skilled workers to visit or relocate to South Africa, further boosting economic activity.
Looking ahead, Operation Vulindlela Phase II will expand the reform focus to include local government. The aim is to improve the reliability of essential services like water and electricity, particularly in major urban areas. Several metros have already submitted turnaround plans that could unlock new performance-based incentives from National Treasury.
“These measures are common sense reforms that will preserve public ownership of key infrastructure while introducing greater competition, dynamism and investment,” said the President, rejecting opposition claims that reforms amount to privatisation. “Even as the world faces difficult economic headwinds, our economic reform agenda will create the conditions for higher growth and investment.”
With the reforms starting to bear fruit and a clear roadmap ahead, Operation Vulindlela remains a key pillar of Government’s strategy to stimulate growth, attract investment and generate jobs for all South Africans.