R390bn in electricity investment ‘tangible evidence’ of benefits of reforms

The first phase of Operation Vulindlela, which was set up jointly by the Presidency and the National Treasury to oversee structural economic reforms, unlocked R390-billion worth of investment in the electricity sector.

The investment figure is included in the Medium-Term Budget Policy Statement released on Wednesday by Finance Minister Enoch Godongwana, who indicated the second phase would seek to build on previous efforts.

The investment in the energy sector, he stated, provided “tangible evidence that structural reforms can reduce economic bottlenecks”.

Under the second phase, which has been endorsed by the Government of National Unity, reforms in the electricity, freight logistics, visa, broadband and water sectors could be coupled to new initiatives.

“In the energy sector, we will continue to restructure the electricity supply industry, establish a competitive electricity generation market, and alleviate constraints on transmission infrastructure.

“In transport, we will open the freight rail network to private operators to reduce inefficiencies and costs.

“In water, the focus is on creating independent economic regulation and strengthening the local water services regulatory environment.

“The second phase will also introduce new focus areas that seek to strengthen local government, harness digital infrastructure and integrate urban environments to make cities more efficient,” the Minister said in his address.