President Cyril Ramaphosa has hailed reform aimed at turning around the embattled economy, saying significant progress has been made as a result of Operation Vulindlela — a government initiative aimed at accelerating progress on economic reform.
This was echoed by Business Leadership SA CEO Busi Mavuso, who said there was still much work to do on reforms to support the economy. In their newsletters on Monday, the two leaders said SA was making progress on economic reform by addressing issues pertaining to reliable energy supply, rail and ports, high data costs and a visa system that has deterred investors and tourists.
“We have made significant progress since then in clearing these obstacles with a clear view to enhance economic growth. The reduction in load-shedding over the past year was supported by the reforms that we introduced to unlock private investment in electricity generation, while reforms in the telecommunications sector have brought down the cost of mobile data,” Ramaphosa stated.
“We have reduced the turnaround times for approval processes for water-use licences and energy projects, and have made great progress in clearing the visa application backlog and expanding the eVisa scheme.”
The government commenced the next phase of Operation Vulindlela recently to build “on these successes and initiate a second wave of reform”, the president said, adding: “We are moving quickly towards a competitive electricity market, which will introduce greater competition in electricity generation and reduce the chances of experiencing load-shedding again.”
Mavuso said the focus on structural reform remained paramount. “The recent launch of Operation Vulindlela Phase II by President Cyril Ramaphosa on May 7 2025 signals a renewed commitment to critical reforms. BLSA is steadfast in its pledge to provide technical support for the swift implementation of pro-growth reforms,” she said.
Ramaphosa said as part of Operation Vulindlela Phase II, “we are also reforming the local government system to ensure that basic services such as water and electricity — which are essential for economic growth — are delivered efficiently and reliably”.
“Several metros have submitted plans for the turnaround of their water and electricity utilities that outline a clear pathway for the ring-fencing of water and electricity services. Progress against these action plans will enable these municipalities to access a new performance-based incentive from National Treasury to drive much greater investment in water and electricity infrastructure. All of these reforms are designed to boost economic growth and create jobs for South Africans,” the president said.
Ramaphosa said the energy sector reform currently under way would introduce greater choice for consumers and drive down costs. “As part of this process, work is under way to establish an independent transmission system operator within the next five years, in line with the Electricity Regulation Act. We have also made significant progress towards enabling greater investment in our transmission network, including from the private sector, with regulations to govern these investments,” he said.
Mavuso said: “There is still much work to do on reforms to support our economy. The upcoming launch of the BLSA Reform Tracker in August 2025 will further enhance accountability and accelerate the reform agenda, a testament to our commitment to data-driven progress.”
Ramaphosa said the claims by some opposition parties that the reforms represented a form of privatisation “are baseless and misguided. The measures we are taking are common sense reforms that will preserve public ownership of key infrastructure while introducing greater competition, dynamism and investment”.
“A number of our peer countries introduced similar reforms, which have powered their economies to higher levels of growth. Even as the world faces difficult economic headwinds, our economic reform agenda will create the conditions for higher growth and investment, while renewing our infrastructure for generations to come,” said Ramaphosa.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.