More than half of the government’s flagship structural reform programme is progressing as planned, the first quarterly report of the second phase of Operation Vulindlela shows.
Of the 30 priority actions being tracked in Phase II, 16 are rated “on track” (53%), while eight are delayed but still moving forward.
According to the report, released on Thursday, two face “significant challenges” that require intervention, three (under the local government and spatial integration sections) have not yet started,, and one — in the visa section — has technically been completed but still needs follow-up work.
Launched in October 2020 as a presidency-National Treasury partnership, OV set out to clear the structural roadblocks holding back growth.
Phase 1 homed in on five high-impact bottlenecks — electricity, freight logistics, water, telecommunications and visas — because fixing them promised the quickest wins for investment, competitiveness and jobs.
Phase 2, unveiled this year, keeps the momentum on those fronts but adds digital transformation and spatial inequality, bringing the action list to 30.
Early phase 2 gains include rules that let private power onto the power grid, approval for 1,164km of new transmission lines, and 288MW of fresh wind power already online.
On transport and tourism, Transnet’s new rail unit drew 98 private bids to run trains, the state lender logged 162 offers to run rail and port routes, and a fast-track visa test has sped up more than 11,000 Chinese and Indian arrivals.
The cabinet has also backed a national digital plan, draft laws for a new water agency and watchdog, and metro turnaround plans that could unlock Treasury reward funding.
According to the report, the next steps involve the following:
Electricity
Regulators have now approved rules that let private companies move electricity across the national grid and amended the Electricity Regulation Act. The next step is to build a proper market for buying and selling power.
The National Transmission Company of SA needs a market-operator licence and must lodge the final rule book.
The energy department will seek full proposals in November for privately funded lines, unlocking investment in 1,164km of new high-voltage power lines.
Logistics
Regarding logistics, Transnet’s Rail Infrastructure Manager (Trim) and the National Ports Authority will establish their independence and publish a 2025/26 Network Statement and new access fees.
By August they must award open-access train slots after vetting 98 private bids, SA’s first independent trains in decades.
A National Rail Bill must be developed to give the open-access system full legal backing.
Water and sanitation
Meanwhile, the Water Services Amendment Bill must be introduced in parliament to separate municipalities (water service authorities) from the companies or utilities that actually run the systems.
“Preparatory work” for the National Water Resources Infrastructure Agency must be completed. This agency will absorb the Trans-Caledon Tunnel Authority, including its staff, by April 2026.
The National Water Action Plan detailing steps across all levels of government has to be finalised and released to secure long-term water supply.
Visas
The department of home affairs will complete and test its Electronic Travel Authorisation for visa-required tourists in September. This is an online pass that lets tourists be pre-cleared before they fly.
Local government
Regarding local government, six metros filed final turnaround plans for their water-and-power utilities that must be tabled for council approval.
Independent assessments will decide how much each city can draw from Treasury’s performance-based grant.
Officials must also draft a white paper on local government outlining institutional reforms to the local government system.
According to the Operation Vulindlela report, intervention is needed to “standardise and professionalise the appointment of senior officials in local government”.
The move to restructure municipal water and electricity services into stand-alone, financially stable utilities has not yet been implemented.
Spatial inequality and housing
Meanwhile, a review of planning and building rules will follow, aimed at clearing obstacles to low-cost, high-density projects in urban centres.
According to the progress report, intervention is needed to clear the backlog of title deeds and make the titling system more accessible and affordable.
Digital transformation
Finally, ll digital transformation reforms are on track.
One of the next steps is to build an integrated data-exchange backbone so that key government databases can “talk” to one another.
A digital ID will be introduced, allowing the old green bar-coded ID book to be phased out.
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