- Progress recorded in Home Affairs and public services, including visa reforms and e visa rollout.
- Delays in electricity market rules and system operator separation raise investor concerns.
- Port concessions move forward with Durban Gateway reaching financial close, unlocking R11.1bn.
In her weekly newsletter, Business Leadership South Africa’s CEO Busisiwe (Busi) Mavuso reports that South Africa is showing mixed progress on structural reforms, with gains in administrative efficiency offset by setbacks in electricity and logistics, the two sectors most critical to economic growth.
According to the latest quarterly update of the BLSA Reform Tracker, improvements in Home Affairs and public service reform are helping to streamline the business environment. The extension of the Trusted Employer Scheme is enabling faster processing of skilled worker visas, while continued rollout of e visas is supporting tourism and job creation. These measures are seen as practical steps that enhance investor confidence and operational efficiency.
However, the report highlights growing concern over delays in electricity reform. Key milestones have been missed, including the implementation of wheeling frameworks that would allow private generators to sell power across the grid. Originally scheduled for April, these rules are now expected in September. At the same time, progress on establishing a competitive wholesale electricity market has stalled.
Independent power producers are also facing curtailment, with Eskom owing nearly R2bn for unused electricity. This development is undermining confidence in the private generation market. More critically, the planned separation of the independent system operator from Eskom remains delayed, despite clear government policy supporting the move.
While load shedding has eased, analysts warn that reduced urgency could slow reform implementation. Energy remains a central enabler of economic growth, and without increased capacity and competition, South Africa risks limiting its industrial expansion and job creation potential.
In logistics, there are notable developments. The concessioning of port terminals is progressing, with multiple facilities now included in the programme. Durban Gateway Terminal has reached financial close, unlocking R11.1bn in investment, signalling strong private sector interest in port infrastructure.
The publication of draft access conditions for the rail network marks another step forward, outlining how private operators can participate in freight transport. However, critical institutional reforms remain incomplete. The Transport Economic Regulator is not yet operational, and efforts to separate rail infrastructure management from Transnet are losing momentum.
Without these reforms, industry stakeholders warn that private sector participation will be constrained and efficiency gains limited. South Africa’s logistics system continues to require significant improvement to meet global benchmarks and support export competitiveness.
The overall pattern indicates that reform progress is strongest where government maintains clear direction and oversight. In contrast, implementation slows where state owned entities resist change. The unbundling of both the electricity grid and rail network remains central to unlocking large scale private investment and driving long term economic growth.
Author: Bryan Groenendaal
