South Africa’s flagship reform programme is picking up speed. The Operation Vulindlela 2026 first-quarter report, released on Friday, records progress across electricity, freight rail, water, visas, local government and housing — the network industries and systems that underpin growth and everyday service delivery, SAnews reports.
Operation Vulindlela is a joint initiative of the National Treasury and the Presidency that accelerates structural reforms to achieve rapid, inclusive economic growth, improve service delivery and strengthen state capability. “Sustained implementation of structural reforms is improving South Africa’s competitiveness, reducing constraints to growth, and laying the foundations for higher levels of private investment,” the report notes.
Powering a Competitive Electricity Market
The first phase of the Eskom Restructuring Task Team’s work is complete, with its report on establishing an independent state-owned transmission entity endorsed by President Cyril Ramaphosa. The report calls this a critical step to restructure Eskom while maintaining energy security and reducing the high cost of electricity. Key steps have also been taken towards a regulatory framework for the coming South African Wholesale Electricity Market.
Opening the Rails
Freight reform produced some of the quarter’s most tangible wins: publication of the latest Network Statement opening the freight rail network to multiple operators, Rail Access Agreements concluded with 11 train operating companies, an implementation plan for corporatising the Transnet National Ports Authority, and a finalised draft National Rail Bill. In parallel, PRASA continued restoring passenger rail services and expanding its rolling stock, supporting urban mobility and economic inclusion.
Water for All, Visas That Work
President Ramaphosa recently unveiled the National Water Action Plan, aimed at delivering running water to all South Africans regardless of location. Together with the new National Water Crisis Committee, the plan provides a coordinated framework for the sector, while the South African National Water Resources Infrastructure Agency is being operationalised and the project pipeline expands through the Water Partnerships Office and the newly established Infrastructure Finance and Implementation Support Agency.
Visa reform is also delivering. The Electronic Travel Authorisation system is being expanded, Phase II of the Trusted Employer Scheme has launched for all qualifying employers, new visa programmes are supporting business events, tourism and the creative industries, and major land ports of entry are being redeveloped through public-private partnerships to speed up cross-border trade and travel.
Stronger Municipalities, Better Housing
The first cohort of metros is implementing the Metro Trading Services Reform Programme to improve municipal water, electricity and sanitation services, while work advances on the White Paper on Local Government and municipal finance reforms. On housing, government is developing subsidy programmes to support affordable housing investment, releasing well-located public land and tackling the title deeds backlog.
The report is candid that progress in some areas has been uneven given the complexity of institutional reform — but its direction is clear: “the focus will increasingly shift towards accelerating delivery” so that reforms translate into measurable improvements in infrastructure, service delivery and inclusive growth.
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