WeeklySA_AdminBAROMETER: Quarter One report highlights progress in electricity, rail, water, visas and digital services, but the government concedes some key reforms remain slower than planned…
By Own Correspondent
The government’s flagship structural reform programme, Operation Vulindlela (OV), is gathering momentum across key sectors, with fresh progress reported in electricity, freight rail, water, local government and digital public services.
The programme, a joint initiative of the Presidency and National Treasury, is designed to accelerate structural reforms that drive inclusive economic growth, improve public service delivery and strengthen the state’s capacity.
According to the 2026 first-quarter report released on Friday, sustained reforms are improving South Africa’s competitiveness despite ongoing global economic uncertainty.
“This quarter saw continued progress in advancing reforms to improve the performance of network industries, address challenges in local government and create an enabling environment for investment,” the report said.
It added that the reforms are helping reduce constraints on economic growth while laying the groundwork for greater private investment and broader economic inclusion.
Government said significant strides have been made towards establishing a competitive electricity market.
The first phase of the Eskom Restructuring Task Team’s work has been completed, with President Cyril Ramaphosa endorsing recommendations to establish an independent state-owned transmission entity.
The report described the move as a critical milestone that will help minimise financial, operational and fiscal risks during Eskom’s restructuring while safeguarding energy security and lowering electricity costs through market reform.
Government also remains on course to launch the South African Wholesale Electricity Market, with work continuing on the required regulatory framework. In the freight sector, reforms aimed at opening rail infrastructure to greater private sector participation also advanced.
Key developments include publication of an updated Network Statement to facilitate access for multiple rail operators, the conclusion of Rail Access Agreements with 11 train operating companies, progress towards corporatising the Transnet National Ports Authority, and finalisation of the draft National Rail Bill.
Water and sanitation
The report highlighted the recent launch of the National Water Action Plan and the establishment of the National Water Crisis Committee (WATERCOM) as important steps towards tackling South Africa’s worsening water challenges.
Further progress was reported in establishing the South African National Water Resources Infrastructure Agency, advancing the Water Services Amendment Bill, implementing revised raw water pricing and expanding infrastructure financing through the Water Partnerships Office and the Infrastructure Finance and Implementation Support Agency (IFISA).
Visa reforms
Government said visa reforms continue to modernise South Africa’s immigration system to support tourism, investment and skills attraction.
The Electronic Travel Authorisation system is being expanded, while Phase II of the Trusted Employer Scheme now allows more qualifying employers to participate. New visa programmes targeting business events, tourism and the creative industries are also being rolled out.
Plans to redevelop major land ports of entry through public-private partnerships are progressing to improve cross-border trade and travel.
Meanwhile, reforms to strengthen municipalities continue through the Metro Trading Services Reform Programme, with the first group of metropolitan municipalities now implementing measures to improve governance and service delivery.
Work is also continuing on the White Paper on Local Government, amendments to the Municipal Finance Management Act, reforms to the local government fiscal framework and preparations to expand the Public Service Commission’s oversight role in municipalities.
Housing and rail
Government reported further progress in developing affordable housing programmes, releasing strategically located public land for housing developments and reducing the backlog in title deeds.
PRASA has also continued restoring passenger rail services and expanding its rolling stock fleet to improve urban mobility.
Digital public infrastructure reforms accelerated during the quarter, focusing on the MyMzansi platform, the MzansiXchange data integration layer, a national digital identity system and the payments modernisation programme.
According to the report, implementation has concentrated on building the technical and governance foundations needed to deliver integrated, citizen-centred digital services.
Challenges remain
Despite the progress, the report acknowledges that implementation has been uneven in some areas because of the complexity of institutional reforms and the need to coordinate multiple stakeholders.
However, it says the programme is entering a more mature phase, with the emphasis now shifting to faster implementation, removing remaining bottlenecks and ensuring reforms produce measurable improvements in infrastructure, public services and economic growth.
