'There needs to be capacity to implement because implementation of some of the complex reforms is not easy.'
It is no secret that Operation Vulindlela has made some progress since it was launched. But the slow pace of change has people asking whether the initiative can really fix South Africa.
Rudi Dicks, head of the Project Management Office in the Presidency and co-lead of Operation Vulindlela spoke about the country’s current reform efforts and how their implementation can be accelerated during a recent webinar with Ann Bernstein, Centre for Development and Enterprise’s executive director.
Operation Vulindlela is a joint initiative of the Presidency and National Treasury aimed at accelerating the implementation of structural reforms and supporting economic recovery. A recent progress report revealed that it delivered tangible wins in electricity and visa reform, although implementation has slowed on other critical reforms.
Has there been change?
Bernstein asked if the core reason that made the government establish the initiative has changed, to which Dicks said it has not changed, but has evolved.
“The core reason has not changed, but it has evolved, showing that the decisions we took on paper about the sectors were the right decisions,” he said. “But we’ve got to make sure we carry through the reform, we’ve got to do it fast, we’ve got to make sure we can create confidence.”
Dicks highlighted that, when it comes to reform in the country, the inability to implement decisions needs to be addressed. “There needs to be capacity to implement because implementation of some of the complex reforms is not easy.”
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Is it realistic to expect change?
Another thing Bernstein asked was whether it is realistic to expect meaningful reform from a weakened system, given how long it takes reforms to be implemented.
He answered, “Do you wait for capacity, then implement reform, or do you find a mechanism that says how we find the capacity while implementing reform?”
Dicks was acknowledging that the system is weak and slow to act, but if they keep waiting to fix capacity first, nothing will ever change. So maybe it is best to find a way to build capacity while already reforming.
SA in a low-growth trap
“Some people can say SA has fallen [into] a low-growth trap,” said Bernstein. “This is when no one genuinely expects faster growth, so no one invests in anticipation of benefiting from that growth, but later on, it turns out there [are] some benefits. Can Operation Vulindlela change this?”
Dicks said he does agree that the country is in a low-growth trap. He highlighted that what drives growth is capital formation. “Investment into infrastructure, into water, electricity, and transport. These are the things that drive growth,” he added.
“If you want to grow by 3%, you’ve got to have an investment rate of 18% to 20% of GDP. We are doing under 15% or 14% as it is right now. So you got a significant hurdle to climb.”
He said, in his view, the reforms can be a catalytic way of getting that investment.
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Operation Vulindlela’s key milestones in the second quarter
The report identified the below as some of the key milestones for Operation Vulindlela in the second quarter:
- The National Energy Regulator of South Africa (Nersa) is expected to make a decision on the application for a Market Operator license by the National Transmission Company of South Africa (NTCSA) in November 2025, after a public hearing was held on 30 September 2025.
- The revised Market Code, which outlines the rules to govern South Africa’s wholesale electricity market, was developed through an extensive process of consultation with key stakeholders ending on 11 September 2025. The code will be submitted to Nersa by the NTCSA once the Market Operator license is obtained.
- The 2025 South African Renewable Energy Grid Survey shows that 220 GW of solar, wind and battery storage projects are now in development, an increase from 134 GW in 2024. Of these, 72 GW are at an advanced stage, with environmental approval and a power purchase agreement signed or close to signature.
- A gap analysis of systems and processes required for the Market Operator function of the NTCSA was completed, and work is underway to establish the infrastructure and capacity required to operate the market. The NTCSA launched the South African Wholesale Electricity Market (SAWEM) School in July 2025 to support the training and accreditation of future market participants.
- Six additional preferred bidders with a total capacity of 1 290 MW were announced for the seventh round of the renewable energy procurement programme (REIPPPP 7) in July 2025, bringing the total capacity secured through the bid window to over 3200 MW.
- A Request for Qualifications (RFQ) for the first phase of Independent Transmission Projects (ITPs) was launched on 31 July 2025. These projects will enable private investment in transmission infrastructure for the first time, accelerating the rollout of new high-voltage power lines across the country.
- Eskom returned to profitability for the first time in eight years following its significant recovery in operational performance and the implementation of the Eskom Debt Relief Act.
- Eskom published a Congestion Curtailment Practice Note to unlock 3 470 MW additional grid connection capacity, particularly in the Eastern Cape and Western Cape, regions with significant renewable energy potential. This will enable the additional capacity to be allocated to qualifying projects.
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