Cape Town: Over the next year, the South African government will introduce a second wave of reforms aimed at enhancing the country’s economic potential. This announcement was made by President Cyril Ramaphosa during the State of the Nation Address (SONA) at the Cape Town City Hall.

According to South African Government News Agency, President Ramaphosa emphasized the impact of current economic reforms under Operation Vulindlela, which have fostered optimism and confidence. These reforms have progressed in restructuring several network industries, leading to improved functionality and increased investment opportunities, resulting in job creation. Ramaphosa highlighted the importance of collaboration among business, labor, and social partners to continue this progress, with plans to initiate further reforms for rapid and inclusive growth.

A primary focus of these reforms is on state-owned enterprises (SOEs), particularly Eskom and Transnet. President Ramaphosa described these entities as crucial for the optimal functioning of the economy. To advance this initiative, a dedicated SOE Reform Unit is being established to reposition these entities to provide world-class infrastructure and enable competition in operations across sectors like electricity generation, freight rail, and port terminals. The ongoing fundamental reform of SOEs aims to strengthen governance and oversight of public entities.

A significant reform area is South Africa’s energy sector, with the implementation of the Electricity Regulation Amendment Act this year. President Ramaphosa referred to this Act as the start of a new era, unlocking a competitive electricity market. The President expressed the need to eliminate the risk of load shedding by completing energy system reforms to ensure long-term energy security. The Act, effective from January 1st, is set to facilitate the emergence of multiple electricity generation entities competing in the market. The government plans to mobilize private sector investment in the transmission network to connect more renewable energy to the grid.

With these ongoing and upcoming reforms, President Ramaphosa stated that obstacles to meaningful and faster growth are being steadily removed, paving the way for a more dynamic economic future.