By Johnathan Paoli
Operation Vulindlela has reported progress on seven major government reform programmes, but its latest quarterly report highlights missed targets and delays in several key areas.
Released on Friday, the second-quarter report for the 2026/27 financial year acknowledges that electricity transmission targets were missed, rail restructuring remains behind schedule, and progress on housing and title deed reforms has been slow.
“As reforms move from design to implementation, the focus is increasingly shifting towards delivery and measurable outcomes. While progress remains uneven in some areas, continued implementation is expected to support higher infrastructure investment, improved service delivery and stronger economic growth,” the report stated.
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While the initiative says the reforms are helping to boost investment and economic confidence, the latest assessment raises questions about how quickly these interventions will translate into tangible improvements in service delivery and economic growth.
In the electricity sector, government is working towards establishing a competitive wholesale electricity market. The Electricity Sector Market Transformation Position Paper, revised Electricity Pricing Policy and regulatory framework for a trading platform have been published for public consultation.
President Cyril Ramaphosa has also approved a high-level proposal to establish an independent Transmission System Operator, with a detailed implementation plan still being developed.
However, electricity distribution reform remains behind schedule, while the National Transmission Company South Africa missed its targets for new high-voltage transmission lines in the previous financial year.
The report says work is underway to accelerate infrastructure construction, with the final request for proposals under the Independent Transmission Projects Programme now expected in the second quarter of 2027.
Freight logistics reform has recorded some gains at Transnet, which reported a R4.6-billion profit for 2025/26. However, the state-owned logistics company fell short of its targeted freight volumes, despite reversing a prolonged decline in performance.
Cabinet has approved the approach to establishing an independent National Ports Authority, while Transnet has launched a process to identify a strategic partner for the Ngqura Manganese Export Corridor.
The revised rail Network Statement is intended to open the freight network to private operators, with the first operators expected to begin services in early 2027.
However, the restructuring of the Transnet Rail Infrastructure Manager remains behind schedule, while the establishment of the Transport Economic Regulator has also been delayed. Operation Vulindlela is targeting March 2027 for the regulator to become fully operational.
Water reform is focused on addressing supply disruptions and water-quality challenges through stronger regulation, infrastructure investment and partnerships between water boards and municipalities.
The five work streams under the National Water Action Plan are operational, while the board of the South African National Water Resources Infrastructure Agency has been appointed.
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However, the agency is still being established and is expected to become fully operational by April next year.
Legislation aimed at strengthening water services regulation remains under development, while work is also continuing on the establishment of an independent economic water regulator.
Visa and immigration reform has delivered more immediate administrative gains, with the Electronic Travel Authorisation system launched in August.
More than 216,000 applications have been processed, with applications reportedly completed within 24 hours.
The system currently serves tourist visa applicants from 53 countries, with expansion to all countries and additional visa categories targeted for March 2027.
The department has also finalised 20,000 waiver applications within two months.
However, clearing the remaining backlog of waiver applications and appeals remains a target for March next year, while the second phase of the Trusted Employer Scheme is progressing through the appointment of qualifying employers.
In local government, Cabinet has approved a revised White Paper on Local Government, while the Municipal Finance Management Amendment Bill has been published for public comment.
The R54-billion Metro Trading Services Reform Programme, which incentivises eight metropolitan municipalities to ring-fence and professionalise their water, sanitation, electricity and waste services, is moving into implementation.
However, performance evidence submitted by participating metros is still undergoing independent verification.
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Spatial integration and housing reform remain at an earlier stage, with government developing an affordable inner-city rental pilot. Digital tools aimed at addressing the title deeds backlog are also being tested in Johannesburg and Ekurhuleni.
The report acknowledges that progress on title deed reform has been slower because of the complex coordination required across different spheres of government.
A shortlist of suitable state-owned land for affordable housing is expected by December, while a streamlined process for releasing public land is still being developed.
Digital public infrastructure reform has advanced through the development of a working MyMzansi prototype, which is being tested in a controlled environment.
A digital matric qualification service has been demonstrated, while the shared website platform is being tested by participating government departments.
The MzansiXchange data-sharing pilot is expected to be completed in December, although further testing and legal arrangements are required before additional services can be made publicly available.
The report acknowledged that the next challenge would be translating policy decisions, regulatory frameworks and pilot projects into operational infrastructure, improved municipal services and measurable economic benefits.
