Significant milestones were achieved during the third quarter across seven reform focus areas.
The Operation Vulindlela (OV) task team has reported on progress made during the third quarter of the second phase of the government’s flagship economic reform initiative, which the government is satisfied with.
OV, launched in 2020, was designed to fast-track structural reforms aimed at removing constraints on investment, infrastructure development and job creation, areas widely seen as critical to unlocking higher growth.
The latest estimates by National Treasury for South Africa’s economic growth for 2026 is 1.5%, a rate which economists view as not enough to deal with the country’s challenges.
During the delivery of the progress report on Friday at the Johannesburg Stock Exchange (JSE), the task team sounded fairly satisfied with progress made thus far. However, if the economic reform initiative was established almost six years ago, and the country’s economy is still struggling to grow in a meaningful way, can OV really help and deliver?
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Operation Vulindlela’s work
Professor Waldo Krugell, an economist at the Faculty of Economic and Management Sciences at North-West University (NWU), told The Citizen that OV is doing good work and making progress. However, they still do not have actual investment resources, which is vital.
“They try to set up processes and unblock systems,” he said. “They are what they were really good at, for example, visa reforms, but make much slower progress with complicated practical stuff at Eskom and Transnet, where reforms are even sometimes contested.”
“So, their work is crucial for economic growth, but will drive growth in a very indirect way. The biggest win will be when the progress they are making ignites private sector business confidence and investment. Those are the actual drivers of growth.”
Focuses of Operation Vulindlela
Finance Deputy Minister David Masondo said the focus remains on transforming the electricity sector, modernising the freight logistics sector, ensuring reliable access to safe drinking water, attracting skills, investment and tourism, and improving the delivery of basic services and infrastructure.
“Third quarter has once again demonstrated how critical structural reforms are to our economic trajectory, and why we must continue to press forward with urgency,” he said.
“We recorded progress across several cross‑cutting areas, from regulatory and policy improvements to institutional restructuring, and the expansion of private sector participation and investment.”
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Achievements in energy sector
According to the progress report for the period, progress was recorded in the electricity sector, with Nersa approving the Market Operator licence for the National Transmission Company of South Africa, publishing electricity trading rules for public comment, and approving grid capacity allocation rules to ensure fair and non-discriminatory access to constrained network infrastructure.
“The pace of Eskom restructuring has been slow, including that of electricity distribution industry (EDI),” reads the report.
“The introduction of the Distribution Agency Agreements is a critical component of reform, and government’s focus will now be on releasing the EDI Roadmap to enable implementation of key reform proposals.”
OV’s achievements at Transnet
Regarding Transnet, the task team said the state-owned logistics company maintained improved operational performance during the period, as reflected in higher rail volumes and continued progress in fleet renewal.
The team said the biggest milestone was the signing of the long-term concession agreement for Durban Container Terminal Pier 2, unlocking investment in port capacity and technology.
“Preparatory work continued to enable private train operations on the freight rail network, while the technical assessment on the corporatisation of the National Ports Authority was finalised,” reads the report.
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One of the biggest challenges in SA
Water is one of the biggest challenges in the country, with some areas going weeks without it, but the OV task team assured that the water and sanitation reforms progressed toward institutional restructuring and stronger regulation.
“Preparations for the establishment of the National Water Resources Infrastructure Agency advanced, including completion of the national asset register and transition arrangements,” reads the report.
“Draft operating licence regulations for water service providers were developed, and standardised documentation was finalised to support performance-based contracts to reduce water losses. Work also continued to lay the groundwork for an independent economic regulator for the water sector.”
Visa by the TTOS
The task team said almost 40 000 group travellers from China and India have successfully obtained visas through the Trusted Tour Operator Scheme (TTOS). 65 tour operators joined the TTOS during the first phase and it is estimated that more than 3 000 employment opportunities have been created by TTOS tourists.
“The Electronic Travel Authorisation (ETA), introduced in September 2025 and rolled out to travellers from China, India, Indonesia, and Mexico in November 2025, enables online visa submissions, capturing of biometrics, and receiving real-time approvals,” reads the report.
“Following the reform of the visa system, 2025 saw a significant increase in the number of international tourist arrivals. From January 2025 to October 2025 some 8.56 million people visited the country, which marks an increase of 1.3 million new arrivals when compared to the same period in 2024.”