President Cyril Ramaphosa launched the second phase of Operation Vulindlela on 7 May 2025. Building on the progress made in the first phase, Phase 2 of this growth focused initiative will address reforms in three further key areas: tackling the legacy of spatial inequality, enhancing local government performance, and accelerating digital transformation. 

Operation Vulindlela Phase 2 will continue the work of the first phase and extend to further sector reform for economic growth.

Ramaphosa emphasised that, as a country, we need rapid and inclusive economic growth for the benefit of all South Africans. 

“We need growth that serves the millions of people in our country who remain unemployed, and the young people who cannot see a way into the labour market. And we need growth that improves people’s daily lives by fixing the infrastructure that is broken. 

“In this next phase of Operation Vulindlela that we are launching today, we will implement reforms in three new areas,” the president said. 

He stressed that if these reforms are implemented swiftly and boldly, they will put South Africa firmly on the path of economic recovery and renewal. Acknowledging that the process of reform is never easy, and is often contested, especially by those with vested interests, he said: “We have a simple choice to make. If we do not reform our economy, it will not grow and we will not create jobs. Unemployment will rise and poverty will increase. On the other hand, if we implement these reforms – if we do so swiftly and boldly – we will place our economy on a path of growth and renewal. 

“There is a generation of South Africans that does not know what it is to live in a country that is growing. They have never experienced rising incomes, increasing jobs, thriving businesses and expanding opportunities. 

“It is our intention to ensure that every South African feels the benefits of rapid, sustained and inclusive economic growth,” the president said.

aims to address the apartheid legacy of spatial inequality which forced millions of South Africans to live far from economic opportunity. The country’s urban structure needs to be reshaped to enable citizens to live closer to where they work, where there are job opportunities and government services. This restructuring of the urban landscape will require government to change housing policies, to introduce demand-side subsidies for home ownership and affordable rental options, empowering people to choose where they want to live. 

Publicly owned land and buildings, particularly in inner cities, will be released for affordable housing, and the backlog of title deeds for affordable housing will be cleared. 

Reforms will also simplify the titling system, making it more accessible and affordable. Title deeds make home ownership an asset and enable households – especially poorer households – to access credit and use this asset to advance themselves. 

Additionally, the president said, a comprehensive regulatory review will be undertaken to remove barriers to low-cost housing development and encourage investment in urban centres rather than peripheral areas.

addresses another critical need – to fix the many municipalities around the country that are unable to deliver basic services to households and businesses. 

“Operation Vulindlela has set out a clear agenda for local government reform, which starts with improving the delivery of water and electricity services through professional utilities. Utilities must have the right technical skills, strong regulation and oversight, and full control of their billing and revenue functions to allow them to invest in infrastructure and maintenance,” Ramaphosa said. 

Another key step is strengthening local government administration. “We will work to ensure that capable, qualified people are appointed to senior positions in municipalities, such as municipal managers and CFOs,” he said. This will be done by extending the mandate of the Public Service Commission to local government and taking action against municipalities that fail to comply with minimum competency standards. 

The Minister of Cooperative Governance and Traditional Affairs has initiated the process to update the White Paper on Local Government, which includes a review of the institutional structure of local government. 

Additionally, National Treasury will review the local government fiscal framework, including the design of conditional grants, to ensure that the revenue of municipalities matches their responsibilities. 

Ramaphosa noted that Cabinet has recently approved a Digital Transformation Roadmap to drive the adoption of digital technologies in government and to build digital public infrastructure that can be used by all South Africans. This will include a digital identity system, rapid payments to expand financial inclusion, and enabling people to access services like applying for an ID or passport online. 

Ramaphosa said, referring to the first phase of Operation Vulindlela and continuing work, “We have established significant momentum. We have seen the green shoots of recovery. It is our responsibility to grow a flourishing crop and to ensure that all South Africans reap the benefits of its harvest.”

In its first phase, Operation Vulindlela has focused on reforms in five key areas: energy, logistics, telecommunications, water, and the visa system.

Through far-reaching reforms in the electricity sector, government has substantially reduced the severity and frequency of load shedding, relieving a constraint on growth which had strangled the economy for years. 

These reforms have also enabled private investment in energy generation, unlocking billions of rand in new investment in renewable energy in every part of the country. 

Major reform of the country’s ports and rail system, through the Freight Logistics Roadmap, is also under way. Successes achieved include the opening of the rail network to competition and the invitation for private sector participation in port terminals, while ensuring that the network infrastructure remains state owned. 

The completion of the spectrum auction enabled significant investment in telecommunications infrastructure, improving network quality and reducing data costs for every South African. 

The water-use licence system, which once served as a barrier to investment, now works efficiently and has allowed projects in forestry, mining and other sectors to proceed. 

As of last year, the country has implemented an entirely new framework for ‘skilled visas’ to attract investment and encourage businesses to establish themselves in our country and create jobs. 

“This progress has been made possible through the cooperation and commitment of the relevant government departments, state owned enterprises, public entities and social partners.” Ramaphosa commended particularly the Ministers, Deputy Ministers, Directors-General and CEOs that have provided leadership in these efforts. “Over the last four years, Operation Vulindlela has become a government-wide initiative. We are making meaningful progress and it will enable higher growth in the years to come,” the president said.

For more information visit: www.sanews.gov.za