Operation Vulindlela Progress Report shows momentum on economic reform

The Presidency and National Treasury have today, 11 July 2025, released a quarterly progress report for Q1 2025/26 on the implementation of economic reform through Operation Vulindlela. This report is the first to be released since the launch of Phase II of Operation Vulindlela this year.

Operation Vulindlela is a joint initiative of The Presidency and National Treasury, which aims to achieve more rapid and inclusive economic growth through a programme of far-reaching economic reform.

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 released today demonstrates sustained progress in the economic reform agenda, which serves as a counter to strong economic headwinds. Key milestones 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 (PSP) 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.

Further details on progress in each of the reform areas is available in the full report, which can be accessed here. https://www.stateofthenation.gov.za/operation-vulindlela

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.