Operation Vulindlela Phase II faces hurdles in local governance, spatial integration reforms

LOCAL government and spatial integration have remained the two most pressing issues in which the government continues to struggle to implement reforms at the onset of Phase II of Operation Vulindlela (OV) even though momentum was gaining traction in other areas.

- SIPHELELE DLUDLA

According to the OV progress report for the first quarter for the 2025/26 financial year, reforms on these two were facing significant challenges and an intervention is required.

OV is a joint initiative of the Presidency and the National Treasury which aims to achieve more rapid and inclusive economic growth through a programme of far-reaching economic reforms.

Seven priority reform areas have been approved by Cabinet as part of OV Phase II, including energy, water, freight logistics, visa system, local government, spatial integration and housing, and digital public infrastructure reform.

"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," said Treasury.

"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."