Operation Vulindlela turning the economic tide

• Published date: 13 May 2022
• Publication title: South African Official News

South Africa's economic reforms are beginning to set the country's economy on a growth trajectory, an Operation Vulindlela (OV) progress report has revealed.

OV was established in October 2020 as a joint initiative of the Presidency and National Treasury to accelerate the implementation of structural reforms.

It is a government-wide approach through which Ministers, departments and entities implement structural reforms and a Vulindlela Unit in the Presidency and National Treasury monitors progress, addresses challenges and actively supports implementation.

OV sought to accelerate structural reforms in five key areas:

Stabilize the supply of electricity and noting how critical this is for economic growth and development.

Reducing the cost and increasing the quality of digital communications.

Ensure a sustainable water supply that meets demand in the short and long terms.

Ensure a competitive and efficient freight transport regime.

Ensure a visa regime that attracts skills and grows the tourism sector.

In the first quarter of 2022, OV recorded progress in various areas.

These, said Guma, included the conclusion of the spectrum auction.

She said: 'There was some concern that pending litigation from one of the players in the market would stymie the result and that would have been negatively impact that result. However, we've seen the settlement between industry players and the regulator reaching finality and bringing finality to the auction outcome. We're expecting a further flurry of investment to support this allocation in that sector'.

Renewable energy program

In the energy sector, OV in the quarter opened bid window six of the renewable energy program.

'Preferred bidders [from bid window five] have been announced and expected to reach financial close soon,' she said.

In the same period, there was publication of the draft electricity regulation amendment bill that open for public comments.

'The aim here is to ensure a more competitive electricity market. This reform is occurring alongside the unbundling of Eskom, which is proceeding according to schedule,' she said.

This period also saw the white paper National Rail policy approved by Cabinet, providing clear policy direction on critical third party access and the devolution of passenger rail.

Water progress

On water progress, Guma said OV had revived various water quality monitoring systems.

'We've had the green draft report published recently for the first time since 2014. This allows for better monitoring of water and...