National Treasury on Friday highlighted sustained structural reforms aimed at reviving the country’s network industries, fixing local governance, and building a highly competitive investment environment.

Briefing the media on the first-quarter progress report for Operation Vulindlela, Treasury said despite navigating a highly volatile global economic environment, the initiative is successfully laying the groundwork for inclusive economic growth, reducing systemic constraints, and scaling up private sector participation.

Operation Vulindlela is a joint initiative of the Presidency and National Treasury to accelerate the implementation of structural reforms and support economic recovery.

Treasury acknowledged that while progress across certain sectors remains uneven and slowed by institutional complexities, the broader strategy is entering a “mature phase”.

The State’s focus is actively shifting from legislative finalisation to accelerating delivery, eliminating administrative bottlenecks, and securing tangible infrastructure improvements, Treasury said.

KEY SECTORAL REFORMS

The overhaul of South Africa’s power sector continues to gather pace in establishing a competitive electricity market.

The first-quarter progress report shows that 60% of sector reform has been delayed but that work continues.

In that vein, the Eskom Restructuring Task Team successfully concluded the initial phase of its mandate to oversee the creation of a fully independent, State-owned transmission company.

Government is aggressively driving institutional shifts to boost private sector participation across rail and port networks, with Treasury noting the publication of the latest Network Statement to grant multiple private operators access to the freight rail network and the conclusion of formal Rail Access Agreements with 11 independent train operating companies.

Operation Vulindlela notes that 60% of reform progress in this sector is on track.

It also pointed to the finalisation of the draft National Rail Bill alongside an implementation strategy to corporatise the Transnet National Ports Authority.

Reforms are targeting stricter regulation, institutional frameworks, and accelerated infrastructure spending.

Treasury noted the establishment of the National Water Crisis Committee, the rollout of the National Water Action Plan and the operationalisation of the South African National Water Resources Infrastructure Agency.

Progress in this sector is 50% on track, 25% of work is completed and 25% of it delayed but continuing.

It highlighted the pipeline expansion for new projects managed through the Water Partnerships Office and the newly formed Infrastructure Finance and Implementation Support Agency.

To draw global talent, tourism, and foreign direct investment, the Department of Home Affairs is rapidly modernising its systems, including scaling the Electronic Travel Authorisation system to all eligible nations, multiple visa streams and the launch of Phase II of the Trusted Employer Scheme.

Reform in this sector is 50% completed with some work required and 50% is in progress on track for completion.

Treasury also pointed to the implementation of new visa regimes tailored for creative industries, tourism, and high-value business events and the advanced public-private partnerships to redevelop core land ports of entry for faster cross-border trade.

Treasury is focusing heavily on municipal financial sustainability and public spatial integration, noting that the Metro Trading Services Reform Programme is actively being deployed across a first cohort of metropolitan areas to improve the governance of municipal utilities.

Local government is tracking 50% of reform set for completion with 50% of work delayed but in progress.

There are advancements on the White Paper on Local Government, the Municipal Finance Management Act Amendment Bill, and preparations to expand the Public Service Commission’s mandate into local spheres.

Meanwhile, the Passenger Rail Agency of South Africa expanded its rolling stock and restored critical passenger rail corridors to boost urban mobility, while the housing initiatives advanced through targeted capital subsidy programmes, the release of strategic public land, and resolving the legacy title deeds backlog.

Implementation of the national Digital Transformation Roadmap accelerated to bridge systemic gaps across State systems, core development expanded for the MyMzansi platform and the MzansiXchange data integration layer.

Heavy focus is placed on building a robust digital identity system and updating State payment infrastructure.

Treasury said current work centres on establishing solid technical and governance foundations to guarantee interoperability across separate government databases.

Treasury reiterated that as these legal frameworks and new institutions solidify, the coming quarters will heavily focus on translating these microeconomic interventions into measurable, long-term economic performance.