Vulindlela finds the path
PROGRESS REPORT: SEVEN MAJOR PROJECTS COMPLETED – BUT 12 ARE STILL LAGGING
Operation monitored and identified challenges and blockages.
The much-awaited Operation Vulindlela quarterly progress report reflected seven completed major projects, with 12 still lagging behind. Set up in 2020, Vulindlela, in what President Cyril Ramaphosa has referred to as a vehicle to drive reform, is an initiative to accelerate structural reforms in industries regarded as the bedrock of economic growth.
Overseen by Finance Deputy Minister David Masondo, reporting to Ramaphosa, the report was released yesterday by the presidency and National Treasury.
It aims to modernise and transform network industries, which include electricity, water, transport and digital communications.
Out of the 19 projects listed in the Vulindlela (meaning make way) milestone dashboard, the seven completed projects were:
► The increase in the role of independent power producers;
► The restructuring of Eskom into generation, transmission and distribution entities;
► The increase in the available digital spectrum;
► Improving the water-use licensing process;
► Strengthening the regulation of water pricing and service standards;
► The implementation of e-Visa and visa waivers; and
► The corporatisation of the Transnet National Ports Authority.
Projects flagged on amber included the improvement of energy availability in Eskom plants and addressing institutional inefficiencies in municipal electricity distribution management.
Writing in his Monday newsletter, Ramaphosa said the SA economy could not function or grow without efficient and competitive network industries, he described as “the arteries through which the oxygen of the economy runs”.
“Structural problems in these areas have long been cited as some of the main constraints on economic growth.
“Inefficiency and the high cost of network services are an impediment to doing business in the country.
“A factory can only operate effectively with a reliable and affordable supply of electricity.
“A farm with irrigated farmlands can only produce food if its application for a water-use licence is processed timeously.
“A mine can only transport its minerals for export if the railways are functioning properly.
“A small business cannot thrive if it lacks access to the internet or if the cost of data is too expensive,” said Ramaphosa.
While responsible government departments and entities drove the reforms, Ramaphosa said Operation Vulindlela monitored and identified challenges and blockages.
“Where needed, it facilitates technical support to departments.
“Across government, our focus is on reforms that are fundamental and transformative – reshaping the way our economy works.
“The establishment of the National Ports Authority as a separate subsidiary of Transnet last year had been delayed for more than 15 years.
“This was the necessary first step towards enabling private sector participation and increasing the efficiency of our port terminals.”
Through Operation Vulindlela, government has also been able to “take a more focused and holistic approach to reforms – ensuring better coordination where multiple departments and entities are involved”.
“The best example of this is in the energy sector, where a number of important, interconnected reforms are underway to change the way that we generate and consume electricity.
“Milestones include the raising of the licensing threshold for new generation projects to 100MW – allowing these projects to connect to the grid and sell power to customers.
“We have revived the Renewable Energy Independent Power Producer Procurement Programme through the opening of new bid windows,” said Ramaphosa.
“Changes to the regulations on new generation capacity have allowed municipalities to procure power independently for the first time.
“Legislative reforms will ultimately give birth to a new competitive electricity market, supported by the publication of the Electricity Regulation Amendment Bill and the work underway to amend the Electricity Pricing Policy,” he explained.