Operation Vulindlela Phase 2: Fourth Quarterly Progress Report Published

Posted 24 April 2026 Written by Acts Online
Category Presidency

Brought to you by SA Legal Academy: The Presidency has published the 2025/26 fourth quarterly progress report for Operation Vulindlela Phase 2, highlighting the status of regulatory interventions intended to reduce input costs and improve economic competitiveness.

In terms of the mandate established by the Presidency and National Treasury, Operation Vulindlela continues to oversee the implementation of structural reforms across network industries. The latest report indicates that local government reform initiatives are gaining significant momentum, with a primary focus on creating opportunities for private investment in key economic sectors.

Energy and Water Sector Reforms

The report confirms the government’s ongoing commitment to advancing the transition to a competitive electricity market. This transition is underpinned by the Electricity Regulation Amendment Act, No. 38 of 2024, which facilitates the establishment of a Transmission System Operator and a multi-market model for electricity trading. The progress report tracks the implementation of these market structures to ensure energy security and cost-efficiency.

Regarding water and sanitation, the report notes progress in institutional reforms aimed at improving infrastructure management. Key legislative and regulatory milestones include:

  • The operationalisation of the National Water Resource Infrastructure Agency SOC Ltd Act, No. 11 of 2024, which establishes a dedicated agency to manage national water assets.
  • Ongoing processing of the Water Services Amendment Bill to strengthen the regulatory framework for water service providers and ensure accountability at the municipal level.
  • Interventions to improve the quality of water services through the Blue, Green, and No Drop certification programmes.

Local Government and Logistics

Phase 2 of Operation Vulindlela places an increased emphasis on local government reform. The report details interventions to address service delivery failures and improve the financial sustainability of municipalities. Furthermore, the report tracks the implementation of the Freight Logistics Roadmap, which seeks to introduce third-party access to the rail network and improve the efficiency of South Africa’s ports through private sector partnerships.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; professional impact is channelled through the requirement to advise on the evolving regulatory landscape of the energy and water sectors.
  • For your business: Firms operating in the energy and infrastructure sectors should monitor the rollout of the Transmission System Operator and the new electricity trading platform to identify market entry or procurement opportunities.
  • For your clients: Clients in the manufacturing and mining sectors should prepare for changes in tariff structures and potential private-sector water and electricity supply options as these structural reforms reach maturity.

Originally published at https://legalacademy.co.za/news/read/operation-vulindlela-update-1

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