Operation Vulindlela continues progress
· The South African
The National Treasury said Operation Vulindlela continues progress in the second quarter with 47% of structural reforms are on track, but 40% have been delayed. A total of 7% have been completed. Only 3% require intervention.
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The image is sourced from the National TreasuryOperation Vulindlela Phase II is a joint initiative of the Presidency and National Treasury to accelerate the implementation of priority structural reforms. These support economic growth, improve service delivery, and strengthen state capability. There are seven reform focus areas.
Challenging times
The National Treasury said that despite a challenging global economic environment, strong and sustained progress in implementing growth-enhancing structural reforms has lifted.
The reforms currently underway aim to reduce input costs, improve competitiveness, and create opportunities for private investment in key sectors of the economy.
Electricity sector
During the second quarter 2026, further progress was recorded in the electricity sector. Electricity sector reform continued to gather pace with significant progress towards establishing a competitive electricity market.
The Eskom Restructuring Task Team (ERTT) completed the first phase of its work to oversee the establishment of a fully independent state-owned transmission entity.
Government remains focused on completing the transition to a competitive electricity market by launching the South African Wholesale Electricity Market (SAWEM), with key steps taken to establish a regulatory framework for the market.
Freight sector
In the freight logistics sector, reform advanced through continued implementation of institutional reforms and measures to increase private sector participation.
Progress during the second quarter included the publication of the latest iteration of the Network Statement to enable access to the freight rail network for multiple operators.
Additionally, Rail Access Agreements with 11 train operating companies was concluded.
Water sector
The Treasury said water and sanitation reforms related to institutional restructuring, stronger regulation and the promotion of infrastructure investment gained significant momentum over the period.
Water and sanitation reform focused on strengthening institutions, improving regulation and accelerating investment in infrastructure.
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.
Consequently, progress was also made in operationalising the South African National Water Resources Infrastructure Agency (SANWRIA).
Visa reform
Visa and immigration reform continued to modernise South Africa’s visa and immigration system. This will support tourism, investment and skills attraction.
Work is underway to expand the Electronic Travel Authorisation (ETA) system to all eligible countries and multiple visa categories.
Government also advanced the redevelopment of major land ports of entry. This should improve the efficiency of cross-border trade and travel.
Local government
Local government reform focused on strengthening municipal governance, improving service delivery and enhancing the sustainability of municipal finances.
The first cohort of metros is now implementing reforms through the Metro Trading Services Reform Programme. This will improve the governance and performance of municipal trading services.
Housing reform
Treasury said spatial integration and housing reform continued to develop practical interventions to improve access to affordable housing and address spatial inequality.
Progress was made towards developing demand-side and capital subsidy programmes to support investment in affordable housing. It also aims to address the title deeds backlog.
Subsequently, PRASA made further progress in restoring passenger rail services. It has increased the availability of rolling stock. This supports improved urban mobility and economic inclusion.
Digital infrastructure
Digital public infrastructure reform accelerated with the implementation of the Digital Transformation Roadmap.
This was achieved by the continued development of the MyMzansi platform, the MzansiXchange data integration layer, a digital identity system, and the payments modernisation programme.