A progress report on the implementation of economic reform through Operation Vulindlela for the first quarter of the 2025/26 fiscal year, published on July 10, demonstrates sustained progress in the economic reform agenda, countering to strong economic headwinds, according to the Presidency and the National Treasury.

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

Phase I of Operation Vulindlela focused on unlocking progress in five priority areas: electricity, freight logistics, water, telecommunications and the visa system. These reforms were selected for their high potential to catalyse investment, enhance economic competitiveness and create jobs.

Phase II represents a second wave of structural reform aimed at unlocking more rapid, inclusive, and sustained economic growth. While continuing to drive implementation of reforms initiated during Phase I, the second phase introduces new focus areas that respond to evolving challenges in the economy.

The report is the first to be released since the launch of Phase II of Operation Vulindlela this year.

Key milestones achieved during the past quarter include the publication of a Ministerial Determination and associated regulations to enable the first round of Independent Transmission Projects, as well as a request for information for major private sector participation projects in the freight logistics sector.

Progress has also been made in the new areas of reform included in Phase II, with a comprehensive review of the White Paper on Local Government to reform the local government system and the introduction of a performance-based financing mechanism to support the reform of municipal water and electricity services.

The Digital Transformation Roadmap has been approved by Cabinet and is in implementation, with the development of a digital identity system and other core elements of the roadmap already advanced.