The second phase of Operation Vulindlela is progressing across the various reforms, it was highlighted during a Phase II progress report for the second quarter, on October 31.  

Operation Vulindlela is a joint initiative of the Presidency and the National Treasury, aimed at achieving more rapid and inclusive economic growth through a programme of far-reaching economic reforms.

Phase I focused on reforms in five priority areas of electricity, freight logistics, water, telecommunications and the visa system.

Phase II looked to continue the work in electricity, freight logistics, water and visa reforms; while work in telecommunications reform had been completed, the Presidency’s Rudi Dicks explained at the briefing.

Moreover, it also introduced three new areas in local government, spatial integration and housing, and digital infrastructure.

Phase II, which was adopted in March, aims to build on the successes and momentum of the previous phase, Dicks said at the briefing, indicating that it was now in full implementation mode, with the relevant departments and entities working on the myriad reforms.

In the energy sector, work to establish a competitive electricity market is now advanced, and the pipeline of private investment in new generation capacity, mainly from renewable-energy sources, continues to grow.

A framework to enable independent transmission projects (ITPs) in support of the Transmission Development Plan is now in place and work is under way to launch the first phase of ITP procurement.

The National Transmission Company South Africa has submitted its application for a market operator licence to the National Energy Regulatory of South Africa (Nersa) and has finalised a draft Market Code.

Nersa is expected to finalise Grid Capacity Allocation Rules by the end of the year and Electricity Trading Rules by January 2026, to mitigate the impediments to wheeling electricity and the treatment of electricity traders in the interim grid capacity allocation rule.

Operation Vulindlela is collaborating with Treasury and the Department of Electricity and Energy to implement a detailed plan for the establishment of a fully independent Transmission System Operator aligned to the requirements of the Electricity Regulation Act.

In the logistics sector, the report shows considerable progress towards enabling open access to the freight rail network with the allocation of capacity to 11 private train operating companies across 41 routes.

The revised Network Statement is expected to be published by the end of January 2026, which will establish an effective framework for operators to access the network on fair and commercially viable terms.

The development of opportunities for private sector participation in strategic rail and port corridors is now underway towards the release of the first request for proposals.

A board has been appointed for the Transport Economic Regulator (TER) to enable its establishment in the 2026/27 financial year.

The Durban High Court has dismissed an application by a losing bidder to halt the implementation of a partnership for the Durban Container Terminal Pier 2. This will enable private sector participation to be introduced in South Africa’s largest container terminal, with Dicks highlighting it as major opportunity for investment.

Dicks pointed out that Transnet’s financial results for the 2024/25 financial year showed the impact of the recovery interventions that were implemented from 2023, with freight volumes increasing to over 160-million tons, reflecting a 5.5% increase compared with prior financial years.

Next steps in this area include launching the first request for proposals for private sector participation projects in strategic rail and port corridors, operationalising the TER, and completing preparatory work for the unbundling of the National Ports Authority from Transnet, with all of these slated for March 2026.

In the water sector, progress to establish the National Water Resources Agency is advanced and the Water Services Amendment Bill has been introduced in Parliament to reform water service delivery.

Reforms to the visa system are said to have yielded positive results, with a backlog of over 300 000 visas cleared and processing times reduced for all visa categories.

There had been reports that this figure was disingenuous, with visas being rejected indiscriminately, and the backlog actually transferring to the appeals system. While Dicks was unable to clarify the split between accepted and rejected visas, he said that there had been a definite increase in visas issues across categories.

The Electronic Travel Authorisation system has been developed and is now in implementation for the G20 Summit, enabling more remote application and issuance of visas for applicable countries.

The Trusted Tour Operator Scheme is indicated to have supported 35 000 tourist arrivals since its inception.

Progress was also highlighted in the new reform areas.

The review of the White Paper on Local Government is underway, with 266 responses received to the discussion paper published in May, that will inform the review of the institutional structure.

The Metro Trading Services Reform Programme is in full implementation, providing an incentive for metros to ring-fence, professionalise and turn around the performance of their electricity and water services.

Detailed work has been undertaken to identify and remove the barriers to investment in affordable housing and to accelerate the release of public land.

Moreover, implementation of the Digital Transformation Roadmap is under way, with the launch of the MyMzansi data exchange to enable the secure sharing of data across government.