Godongwana Unveils Phase 2 of Operation Vulindlela to Fast-Track Economic Reform

Finance Minister Enoch Godongwana has reaffirmed South Africa’s commitment to fast-tracking economic reforms aimed at catalyzing rapid and inclusive growth. Speaking at the Union Buildings during the official launch of the second phase of Operation Vulindlela (OV), the minister emphasized that bold and decisive action is necessary to address deep-rooted structural challenges and unlock the country's full economic potential.

Accelerating Reform for Growth and Inclusion

“In order to drive more rapid and inclusive growth over the next five years, we must accelerate economic reform,” said Minister Godongwana. He stressed that a whole-of-government approach is required to reduce the cost of doing business, eliminate regulatory bottlenecks, and provide much-needed policy certainty. These changes are intended to not only promote domestic and foreign investment but also to stimulate export-oriented growth, support job creation, and ensure South Africa remains competitive in the global marketplace.

The emphasis on structural reform comes amid economic stagnation, high unemployment rates, and ongoing infrastructure constraints that have hampered inclusive development. Godongwana noted that without swift and sustained implementation of reforms, South Africa risks falling short of its developmental goals.

Building on Progress: Phase Two Objectives

Operation Vulindlela, a joint initiative of the Presidency and the National Treasury, was first launched in October 2020 with the aim of accelerating priority structural reforms. The initiative has already made significant progress in areas such as energy sector liberalization, logistics modernization, water security, and immigration regulation.

The second phase builds upon these gains with renewed urgency and broader scope. “The immediate priority is to sustain the momentum already developed and follow through on the implementation of existing reforms to realize their full impact,” Godongwana stated. “This will require completing reforms already underway and deepening those which have already been initiated.”

New Strategic Priorities

The second phase of Operation Vulindlela will incorporate additional priority areas that align with South Africa’s broader developmental goals. These include:

• Strengthening Local Government: Improving the capacity and accountability of municipalities to enhance service delivery and restore public trust.

• Harnessing Digital Public Infrastructure: Leveraging digital technologies and platforms to facilitate innovation, drive inclusion, and support more efficient public services.

• Creating Dynamic and Integrated Cities: Developing urban areas into hubs of economic activity through integrated spatial planning, better transport systems, and housing development.

These new areas of focus are intended to remove persistent barriers to growth and deepen the structural transformation of the South African economy.

Enhancing Public Spending Efficiency

Beyond regulatory and institutional reforms, the government is also placing renewed emphasis on public financial management. Godongwana highlighted that over 240 spending reviews have been conducted since 2013, providing a strong foundation to not only implement cost-saving measures but also to align public expenditure more effectively with government priorities.

“Improving the effectiveness and efficiency of spending is crucial,” he said. “We must systematically assess whether public expenditure delivers the best value for money and is targeted where it is needed most.”

Commitment Amid Challenges

The Finance Minister acknowledged the formidable challenges that lie ahead but remained optimistic about the country’s ability to transform its economy through reform and resilience.

“The road ahead is challenging, but with agility and a firm commitment to reform, we can achieve greater competitiveness and a more inclusive economy in line with this administration’s priorities,” he concluded.

President Cyril Ramaphosa, who officially launched the second phase of Operation Vulindlela, echoed these sentiments and called on all sectors of society—government, business, and civil society—to play their part in ensuring that the reforms translate into tangible outcomes for all South Africans.