Operation Vulindlela Phase II is a joint initiative of the Presidency and National Treasury to accelerate the implementation of priority structural reforms that support economic growth, improve service delivery, and strengthen state capability. This progress report for the third quarter of 2025/26 sets out key milestones achieved between October and December 2025 across seven reform focus areas.

During this quarter, significant progress was recorded in the electricity sector, with regulatory approvals and institutional developments that advance the transition to a competitive electricity market. NERSA approved the Market Operator licence for the National Transmission Company of South Africa, published electricity trading rules for public comment, and approved grid capacity allocation rules to ensure fair and non-discriminatory access to constrained network infrastructure.

Additional renewable energy capacity reached commercial operation, further projects were secured under the renewable energy procurement programme, and steps were taken to enable private sector participation in transmission infrastructure. The pace of Eskom restructuring has been slow, including that of electricity distribution industry (EDI). The introduction of the Distribution Agency Agreements is a critical component of reform, and government’s focus will now be on releasing the EDI Roadmap to enable implementation of key reform proposals.

Report by National Treasury