The latest BLSA Reform Tracker shows South Africa’s economic reforms reaching a 71.75% completion index, up 27% since March 2024, but quarterly progress has slowed and municipal dysfunction persists. Cooperative Governance Minister Velenkosini Hlabisa stated that local government failures are the main barrier to growth. National initiatives like Operation Vulindlela continue, yet execution at street level lags.
The Business Leadership South Africa (BLSA) Reform Tracker reports an overall completion index of 71.75, a 27% increase since March 2024. However, quarterly gains dropped to 0.4 points, governance showed no progress for two quarters, and freight logistics declined.
Operation Vulindlela has advanced reforms in electricity, with an Eskom restructuring task team and independent transmission plans; logistics, opening rail and ports to private participation; water, with R100-billion projects; and visas, introducing digital systems.
Cooperative Governance Minister Velenkosini Hlabisa highlighted municipal issues during a BLSA engagement. “We have agreed and confirmed that our main problem is at a local government space,” he said. “Any local government reform is an economic reform.” Businesses suffer unreliable services, raising costs and deterring investment.
National Treasury director-general Duncan Pieterse, at the March launch of the Metro Trading Services Reform Programme, noted R205-billion in planned municipal spending. He cited Johannesburg collecting R11.9-billion in water revenue but allocating only R1.3-billion to infrastructure, and eThekwini collecting R22-billion from electricity but spending R784-million on it.
BLSA CEO Busisiwe Mavuso warned of resistance from state-owned entities like Eskom and Transnet. The tracker underscores uneven progress, with governance as the weakest area.
