South Africa's National Treasury, jointly with the Presidency, published an Operation Vulindlela Phase II progress report covering milestones achieved between January and March 2026 across seven reform areas. The update highlights further preparation for a competitive wholesale electricity market, continued restructuring steps in freight rail and ports, accelerated water-sector institutional and regulatory reforms, modernisation of the visa system, and implementation measures in local government, housing and digital public infrastructure. In electricity, the National Transmission Company South Africa (NTCSA) submitted the South African Wholesale Electricity Market (SAWEM) Market Code to the National Energy Regulator of South Africa (NERSA) and an Eskom Restructuring Task Team was established under the National Energy Crisis Committee to develop an implementation plan toward a fully independent Transmission System Operator, with completion targeted by 31 December 2027. National Treasury designated the Development Bank of Southern Africa as a ring-fenced unit to support incorporation, licensing and capitalisation of the Credit Guarantee Vehicle, with an International Bank for Reconstruction and Development credit facility of USD 350 million (approximately ZAR 5.6 billion) confirmed. In freight logistics, Cabinet approved publication of the National Rail Master Plan for public comment, an implementation plan was developed for establishing an independent National Ports Authority, Transnet submitted a Public Finance Management Act pre-notification for the Transnet Infrastructure Manager subsidiary, and the Transport Economic Regulator entered an initial phase of operations from 1 April 2026. Water reforms included establishment of the National Water Crisis Committee, adoption by the National Council of Provinces of the National Water Resources Infrastructure Agency Amendment Bill (awaiting Presidential assent), implementation of the Revised Raw Water Pricing Strategy from 1 April 2026, resumption of Blue Drop, Green Drop and No Drop assessments, and growth of the Water Partnerships Office active pipeline to 30 projects in 18 municipalities valued at more than ZAR 43 billion. Visa reforms included full implementation of the Electronic Travel Authorisation system, Cabinet approval of the revised White Paper on Citizenship, Immigration and Refugee Protection, and preparations to expand the Trusted Employer Scheme to all qualifying employers. Next steps flagged in the report include the Eskom Restructuring Task Team providing a high-level proposal to the President by end-May 2026 and a set of electricity-market deliverables in June 2026, including finalising trading rules, publishing market-structure guidance, launching SAWEM with internal trading with Eskom entities, and publishing an Electricity Distribution Industry reform roadmap. The report also points to the launch of the National Water Action Plan and steps to operationalise the National Water Resources Infrastructure Agency in April 2026, further private-sector participation requests for proposals in rail and ports through December 2026, implementation of the next phase of the Trusted Employer Scheme in April 2026, and publication of the updated White Paper on Local Government for public comment in May 2026.
National Treasury (South Africa) 2026-04-22
South Africa's National Treasury publishes Operation Vulindlela Phase II progress report on structural reforms across energy, logistics, water, visas, local government, housing and digital infrastructure
The National Treasury of South Africa and the Presidency published an Operation Vulindlela Phase II progress report for January–March 2026, outlining reforms in electricity, freight logistics, water, visas, local government, housing and digital public infrastructure. Key developments include submission of the South African Wholesale Electricity Market Code to the National Energy Regulator, steps toward an independent Transmission System Operator, designation of the Development Bank of Southern Africa to host a ring-fenced Credit Guarantee Vehicle backed by a USD 350 million International Bank for Reconstruction and Development facility, and initial implementation of rail, ports, water and visa reforms.