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Operation Vulindlela update

24th June 2022

By: Riaan de Lange

     

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What do you know about Operation Vulindlela? The piece published in this column on April 2, 2021, headlined ‘Operation Vulindlela’, might provide some insight, or maybe not. The operation’s most recent ‘honorary’ mention appeared in the National Treasury’s media statement of June 7 about the International Monetary Fund’s 2022 visit to South Africa. Next week’s instalment will cover that visit.

Under the headline ‘Structural reform implementation’, the media statement notes: “The National Treasury remains committed to fast-tracking structural reforms to foster job-led growth, as supported through Operation Vulindlela. A total of 26 structural reforms were prioritised, and of this total, eight reforms have been completed, while another 11 are progressing well.”

When did the operation start? In the opening line of the operation’s summary booklet, it’s stated: “In his address to a joint sitting of Parliament on October 15, 2020, President Cyril Ramaphosa announced that, ‘to fast-track the delivery of economic reforms, Operation Vulindlela will be implemented as a joint initiative of the Presidency and the National Treasury.’” That gives you a date stamp.

The following are the 26 structural reforms: 1. Raising the licensing threshold for embedded electricity generation. 2. Implementing the emergency procurement of the 2 000 MW. 3. Procuring new generation capacity in terms of the Integrated Resource Plan 2019. 4. Enabling municipalities to procure power from independent power producers. 5. Restructuring State-owned utility Eskom. 6. Improving the energy availability factor to over 70%. 7. Addressing institutional inefficiencies in municipal electricity distribution. 8. Completing spectrum auctioning. 9. Completing the migration from analogue to digital signals. 10. Finalising the policy and policy direction on the rapid deployment of electronic communication networks. 11. Streamlining the process for wayleave approvals. 12. Improving the water-use licence application process. 13. Reviving the Blue Drop, Green Drop and No Drop water quality monitoring system. 14. Establishing an independent economic regulator for water. 15. Finalising the revised raw water pricing strategy. 16. Establishing a National Water Resource Infrastructure Agency. 17. Addressing institutional inefficiencies in municipal water distribution. 18. Corporatising Transnet National Ports Authority. 19. Improving the efficiency of ports. 20. Establishing a transport economic regulator. 21. Finalising the White Paper on the National Rail Policy. 22. Implementing third-party access to the freight rail network. 23. Publishing a revised critical skills list. 24. Reviewing the policy framework and processes for work visas. 25. Expanding visa waivers and exploring a visa recognition system. 26. Implementing an e-visa system in 14 countries.

The reforms completed to date (the number is actually seven, not eight) are the following: concluding the spectrum auction; opening Bid Windows 5 and 6 of the renewable-energy programme; publishing the draft Electricity Regulation Amendment Bill; Cabinet approval of the White Paper on the National Rail Policy; publishing of the Green Drop report to ensure better monitoring of water and wastewater treatment quality; publishing of the revised critical skills list; and the issuing of the request for proposals to initiate third-party access to the freight rail network. Concerning the reform relating to the procurement system and launching of the e-visa system, which is listed among the completed reforms, work is still ongoing. No details of the 11 reforms that are “progressing well” and the remaining seven reforms are given.

The release concludes: “Concerning energy security, the process of unbundling Eskom is under way. On December 17, 2021, the National Transmission Company South Africa SOC was executed. Eskom has also applied to the National Energy Regulator of South Africa for the transmission licence for the Transmission Company. On environmental matters, South Africa remains committed to addressing climate change based on science, equity and sustainable development. South Africa’s Presidential Climate Finance Task Team will advise the country on the execution of the just energy transition.”

As Boy Louw was famed for saying, “Look at the scoreboard”: 30.77% completed (assuming eight; otherwise, it’s 22.22%), 42.31% “progressing well”, and 26.92% not started.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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