President Cyril Ramaphosa says the government’s ambitious reform programme, Operation Vulindlela, is steadily unlocking South Africa’s economic potential by addressing longstanding constraints to growth and investment.

In his weekly newsletter to the nation, Ramaphosa highlighted that the initiative is already delivering tangible results and ushering in a second wave of reforms to accelerate inclusive and sustainable development.

“We established Operation Vulindlela in the Sixth Administration to remove the binding constraints that have long held back our economy’s growth: an unreliable energy supply, inefficient rail and ports, high data costs, and a visa system that had deterred investors and tourists,” he said

Ramaphosa noted that reforms in key sectors are already yielding positive outcomes. Load shedding has been significantly reduced, thanks to measures that opened electricity generation to private investment.

In the telecommunications sector, reforms have led to lower mobile data costs. Licensing processes for energy and water projects have been streamlined, and the visa backlog has been substantially cleared, with the eVisa system expanding.

The latest progress report on Operation Vulindlela, released last week, outlines key achievements since the initiative’s launch and sets the stage for Phase II, which began in April 2025.

This next phase includes critical reforms to boost investment in electricity transmission and modernise freight logistics, he said. 

“We are moving quickly towards a competitive electricity market, which will introduce greater competition in electricity generation and reduce the chances of experiencing load shedding again,” he said. 

He also confirmed that work is underway to establish an independent Transmission System Operator within the next five years, in line with the Electricity Regulation Act.

Efforts to open up the rail sector are also advancing. A separate Rail Infrastructure Manager has been established within Transnet, and private train operators have submitted 98 access requests so far.

A revised Network Statement will guide how capacity is allocated, signalling the start of open competition in freight rail.

He pointed to significant private sector interest in participating in South Africa’s rail and port infrastructure development. A new Private Sector Participation Unit at the Development Bank of Southern Africa is tasked with fast-tracking this involvement.

Reform of the visa regime is another priority area. An Electronic Travel Authorisation system is on track to go live in September 2025, and the Border Management Authority is enhancing border security as part of a wider reform drive to attract skilled migrants and tourists.

Local government reform is also central to Operation Vulindlela’s second phase. Several metros have submitted turnaround plans for their water and electricity utilities.

These will be used to unlock performance-based incentives from National Treasury, aimed at improving basic services and attracting further infrastructure investment.

“All of these reforms are designed to boost economic growth and create jobs for South Africans,” said Ramaphosa.

He dismissed claims by some opposition parties that these reforms amount to privatisation.

“The claims by some opposition parties that these reforms represent a form of privatisation are baseless and misguided. The measures we are taking are common sense reforms that will preserve public ownership of key infrastructure while introducing greater competition, dynamism and investment,” he said.

As global economic conditions remain uncertain, Ramaphosa expressed confidence that South Africa’s reform agenda will foster long-term growth, renew infrastructure, and build a more inclusive economy for future generations.

hope.ntanzi@iol.co.za

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