South Africa accelerates economic reforms as Operation Vulindlela gains momentum

SOUTH Africa's ambitious reform drive under Operation Vulindlela gained significant traction in the second quarter of 2025/26, with notable progress in the energy, logistics, and digital transformation sectors, according to the latest progress report released on Friday.

- SIPHELELE DLUDLA

The government's structural reform initiative - jointly coordinated by the Presidency and the National Treasury - aims to remove key obstacles to economic growth by modernising critical sectors such as electricity, transport, water, and local government.

Operation Vulindlela Phase II covers 30 structural reforms, spanning energy, logistics, water, local government, spatial integration, visas, and digital transformation.

According to the second quarter dashboard, 44% of reforms are on track, while 40% are delayed but progressing.

The Presidency said the reform drive "continues to unlock private investment, build state capability, and place South Africa on a new growth trajectory."

Rudi Diks, head of project management office at The Presidency, said on Friday that Operation Vulindlela is still on track to help the economy achieve 3.5% growth by 2029.

"We've got to aim for the 3.5% and more. The reforms are just all but one of many of the strategies that we've got to implement, but it is the most key. It's what brings confidence. It's what brings private sector investment and eventually infrastructure investment growth and inclusiveness in the way that we're trying to build on the reform programme," Dicks said.