Operation Vulindlela Q3 Update: What’s Working, What’s Delayed

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Operation Vulindlela (OV), the government’s flagship reform programme, continues to chip away at South Africa’s most pressing structural constraints. The latest Q3 2025/26 progress report issued by National Treasury confirms meaningful advances in key areas like electricity, logistics, and digital infrastructure, though some reforms remain behind schedule or slowed by complexity. Below is what professionals and practitioners need to note from the latest update.

What is Operation Vulindlela?

Launched in 2020 and now in its second phase, OV is a joint initiative by the Presidency and National Treasury to fast-track economic reforms that can unlock growth, attract investment, and improve service delivery. OV works across seven reform areas:

• Electricity

• Freight logistics

• Water and sanitation

• Visa and immigration

• Local government

• Housing and spatial integration

• Digital infrastructure.

Key Progress Highlights from Q3

• Electricity Reform: Grid rules approved, renewables added

  • NERSA approved the Market Operator licence for the National Transmission Company of SA (NTCSA).

  • New grid capacity allocation rules and draft electricity trading rules were published to guide access and investment.

  • 890 MW of renewable energy was secured in the latest bid window, while 365 MW became operational from earlier projects.

  • The Dassiesridge 55 MW wind and storage project came online under the Risk Mitigation programme.

  • Cabinet approved Eskom’s Distribution Agency Agreements to help municipalities stabilise electricity services.

  🟠 Still to come: A full roadmap for restructuring the electricity distribution sector is due in June 2026.

• Freight Logistics: Big port milestone, rail reform progressing

  • Transnet signed a 25-year concession with ICTSI to operate Durban Container Terminal Pier 2, unlocking over R11 billion in investment.

  • Rail volumes increased by 4.4%, showing early results from Transnet’s recovery plan.

  • 41 freight rail slots were allocated to private operators, with 7 expected to begin service in 2027.

• 💧 Water Reform: New agency on track, licensing overhaul launched

  • The National Water Resources Infrastructure Agency is on course to launch by April 2026.

  • The Water Services Amendment Bill was tabled in Parliament and public consultations are underway.

  • New draft regulations for licensing Water Service Providers were completed.

  • Water use licensing turnaround times are improving, with 90-day approvals now the standard and an estimated R34.7 billion in economic value unlocked in 2025 alone.

• Visa and Immigration: Tourism up, digital systems delivering

  • The Electronic Travel Authorisation (ETA) is now live for visitors from India, China, Indonesia, and Mexico—more than 60,000 travellers have used it.

  • Nearly 40,000 tourists arrived via the Trusted Tour Operator Scheme (TTOS).

  • Tourist arrivals for 2025 hit 10.48 million, up 17.6% from 2024.

  • New digital platforms like STAGES for the film industry cut visa wait times from weeks to 24 hours.

• Local Government: First metros begin service reform pilots

  • 12 trading services in 7 metros are piloting performance-linked reforms with support from the Urban Development Financing Grant.

  • Over 260 submissions were received during consultations on the White Paper for Local Government.

  • A review of the local government fiscal framework and new MFMA Amendment Bill are in the pipeline.

• Housing and Land: Rental model tested, land audit underway

  • An affordable rental housing model was tested in Johannesburg.

  • Government is auditing public land and developing a new release model to speed up housing development.

  • The massive title deed backlog is being mapped to guide targeted interventions.

• Digital Infrastructure: Data-sharing and payments upgraded

  • The MzansiXchange pilot is live, enabling secure data-sharing between departments like SASSA and NSFAS.

  • The MyMzansi platform for digital government services reached working prototype stage.

  • Government platforms are now zero-rated for mobile data, while PayInc, the national payments utility, is being modernised in partnership with SARB.

Scorecard at a Glance

✅ On track: 14 reforms (47%)

⚠️ Delayed, but active: 12 reforms (40%)

🚨 Facing challenges: 3 reforms (10%)

✔️ Completed, ongoing work: 1 reform

While not all reforms are moving at the same pace, the cumulative effect is clear: OV is making government more capable, investment more attractive, and service delivery more efficient. In the words of Deputy Minister of Finance Dr David Masondo:

“Structural reforms require consistency, collaboration, and a commitment to sustained execution… Every step forward strengthens the foundation on which growth and investment depend.”