Remarks by Director-General in The Presidency at the Launch of the Operation Vulindlela Progress Report

We are today releasing a detailed progress report on the implementation of economic reforms through Operation Vulindlela, which reflects on the progress which has been achieved across government during this administration.

Operation Vulindlela is a Government-wide initiative, coordinated by The Presidency and National Treasury, which focuses on accelerating the implementation of structural reforms with a high impact on economic growth and job creation.

As the report demonstrates, significant progress has been made in reforming our economy since the President announced the establishment of Operation Vulindlela in October 2023.

In the energy sector, regulatory changes have resulted in a massive increase in private investment in electricity generation, with a pipeline of more than 22 500 MW of confirmed projects in development. The reform of the energy system is now far advanced, with the passage of the Electricity Regulation Amendment Bill and the establishment of the National Transmission Company of South Africa, among other key milestones.

We are already seeing the impact of these reforms in reduced load shedding, and in the proliferation of new energy projects across the country.

In the logistics sector, greater private sector participation in port terminal operations has been enabled and the freight rail network is being opened to competition. These reforms will allow more volumes to be transported via rail and support export growth, while making our logistics system more efficient and competitive.

The Freight Logistics Roadmap, which was adopted by Cabinet in December last year, continues to guide the implementation of these reforms.

In the telecommunications sector, one of the earliest milestones in the economic reform programme was the completion of the spectrum auction, ending a more than ten-year delay and contributing to reduced data costs and improved network quality and reach.

In the water sector, the backlog of water use licenses, which once stood at well over 1000, was cleared and the license application system improved to reduce processing times. Concrete steps have been taken to strengthen institutions in the water system, improve regulation, and invest in infrastructure.

Finally, reforms have been implemented in the visa system to encourage the growth of tourism and enable the economy to attract the skills that it needs to grow. The eVisa system is now available in 34 countries, while visas are waived for visitors from 135 countries. The recommendations of the work visa review, which was completed last year, are now being implemented, including the establishment of a Trusted Employer Scheme and a points-based system for work visas.

Our economic challenges are complex and deep-rooted. However, the progress that we have made in implementing economic reforms through Operation Vulindlela gives us confidence that they will be overcome.

While the impact of these reforms may not be immediate, it will be significant. 

Perhaps the most important lesson of Operation Vulindlela is that we can achieve significant progress by enabling collaboration across Government, by putting in place clear, time-bound plans, and by establishing systems to support delivery and ensure accountability. 

More than 15 Government departments and entities have contributed to the implementation of these reforms, through new ways of working and a singular focus on implementation and results.

Above all, this report demonstrates that Government is fully committed to staying the course on the reform agenda, and removing the constraints on growth.

Thank you.