Operation Vulindlela Marks Major Economic Reform Progress: DG Phindile Baleni

“Significant progress has been made in reforming our economy since the President announced the establishment of Operation Vulindlela in October 2020.

Director-General in the Presidency, Phindile Baleni, highlighted significant advancements made by Operation Vulindlela in reforming South Africa's economy since its inception nearly four years ago. Speaking at a media briefing, Baleni provided an update on the initiative aimed at accelerating structural reforms for inclusive economic growth.

“Significant progress has been made in reforming our economy since the President announced the establishment of Operation Vulindlela in October 2020. Our economic challenges are complex and deep-rooted, but the progress in implementing these reforms gives us confidence that they will be overcome,” Baleni stated.

Electricity Sector Reforms

In the electricity sector, the government has removed barriers to private electricity generation, resulting in significant investments. “Regulatory changes have led to a massive increase in private investment in electricity generation, with over 22,500MW of confirmed projects in development. The reform of the energy system has advanced with the Electricity Regulation Amendment Bill and the establishment of the National Transmission Company of South Africa,” Baleni said. These reforms are already reducing load shedding and boosting new energy projects across the country.

Logistics Sector Reforms

Operation Vulindlela aims to enhance export growth through improved logistics efficiency. “Greater private participation in port terminal operations and opening the freight rail network to competition will transport more volumes via rail and support export growth, making our logistics systems more efficient and competitive,” Baleni noted. The Freight Logistics Roadmap adopted by the cabinet continues to guide these reforms.

Telecoms Sector Reforms

In the telecoms sector, reforms have led to decreased data costs and improved network quality. “The spectrum auction, which ended a more than 10-year delay, has contributed to reduced data costs and improved network quality and reach,” Baleni said.

Water Sector Reforms

Baleni reported that water sector reforms have cleared the backlog in water use license applications, previously standing at over 1000. The improved license application system has reduced processing times, and steps have been taken to strengthen institutions, regulation, and investment in water infrastructure.

Visa Reforms

The government has also reformed South Africa’s visa regime to attract skills and encourage tourism growth. “The e-Visa system is now available in 34 countries, and visas have been waived for visitors from 135 countries. Recommendations from the work visa review task team are being implemented, including the Trusted Employer Scheme and a points-based system for work visas,” Baleni stated.

Collaboration and Commitment

Baleni emphasized that collaboration across government departments and entities has been crucial to the progress of Operation Vulindlela. “More than 15 government departments and entities have contributed to implementing these reforms through new ways of working and a singular focus on implementation and results. This report demonstrates that the government is fully committed to staying the course on the reform agenda and removing constraints on growth,” she concluded.