South Africa’s Economic Growth and Job Creation: Operation Vulindlela

In October 2020, President Ramaphosa launched Operation Vulindlela to accelerate the implementation of 35 priority reforms that would impact economic growth and job creation. This initiative has played a crucial role in driving necessary structural reforms across key sectors such as energy, logistics, digital communication, water, and visas.

Energy Reforms:

The National Energy Crisis Committee, chaired by the President and overseen by the Minister of Electricity, is responsible for implementing energy sector reforms. The report shows several key achievements, including the removal of licensing requirements for generation projects, faster procurement of new generation capacity, and easier procurement of independent power by municipalities. Additionally, Eskom will be unbundled into separate entities for generation, transmission, and distribution, and energy sector transformation will take place to achieve long-term energy security.

Freight Logistics Reforms:

The Department of Public Enterprises, the Department of Transport, and Transnet are working with Operation Vulindlela to finalize a roadmap for the freight logistics sector. Some key milestones achieved so far include partnerships with private terminal operators and the passing of the Economic Regulation of Transport Bill in the National Assembly.

Digital Communications Reforms:

Reforms in the digital communication sector have been implemented following the successful completion of the spectrum auction last year. Some notable changes include the gazetting of the Rapid Deployment Policy, the publishing of the proposed Next Generation Radio Frequency Spectrum Policy, and the approval of a final date for the switch-off of analogue transmission.

Water Reforms:

The Department of Water and Sanitation is responsible for implementing key reforms in the water sector to address challenges at the municipal level, improve water quality, and ensure long-term water supply security. Progress made during the last quarter includes the establishment of a Water Partnerships Office (WPO) in the Development Bank of South Africa (DBSA) and public consultation on the National Water Infrastructure Agency Bill.

Visa Reforms:

Operation Vulindlela has worked with the Department of Home Affairs to undertake a comprehensive review of the work visa system. The implementation plan outlines key changes such as introducing a trusted employer scheme, streamlining application requirements, establishing a points-based system, and creating new visa categories for remote workers and start-ups.

The Operation Vulindlela progress report demonstrates the South African government’s commitment to implementing necessary reforms to address immediate challenges and drive fundamental transformation in the economy. With significant progress made in various sectors, South Africa is well on the way to achieving higher rates of economic growth and job creation.