‘This is not progress’: Operation Vulindlela report sparks debate

Against the background of decaying infrastructure – potholes, the collapse of the Post Office, vandalism and widespread theft of copper – the release last weekend of the Operation Vulindlela 2023 quarterly report by the presidency and National Treasury served as a reflection of how the ANC government has run down the economy since taking over power in 1994, according to a leading economist.

President Cyril Ramaphosa in 2020 announced the establishment of Operation Vulindlela (open the way) as a joint initiative of the presidency and National Treasury to accelerate the implementation of reforms aimed at reviving economic growth and creating jobs.

Describing the report as “quite disconcerting”, University of the Witwatersrand economics professor Jannie Rossouw said items listed as being fixed had “functioned perfectly well and delivered the necessary results in 1994, when the ANC government took over”.

“The report on progress made towards the restoration of the South African economy is quite disconcerting, when looking at some of the initiatives now taken under the guise of fixing the economy.

“What the Presidency and National Treasury claim as Operation Vulindlela successes can, in many instances, be viewed as restoring what was in place before.

“We had a functioning railroad system and the Post Office, among others – infrastructure which was run down by the ANC government.

“It is not as if there are major new achievements, merely efforts to bring South Africa – in terms of public service delivery – back to the standard we had in 1994.

“If anything, this is a clear indication of how much damage the ANC has done to the South African economy in the past 29½ years – not something the government should be proud of.”

Detailing progress in areas, the report’s milestones included:

v Gazetting of the final date for analogue switch off, which enabled analogue transmission to be switched off for all frequencies above 694 megahertz (MHz) on 31 July, which cleared the spectrum for mobile telecommunications, improving network quality and reducing data costs for all South Africans.

v Selection of an international terminal operator to partner with Transnet at the Durban Pier 2 container terminal, ensuring private investment and management expertise improved the performance of South Africa’s largest container terminal, which handles 72% of the Port of Durban’s throughput and 46% of South Africa’s port traffic.

v Establishment of the National Logistics Crisis Committee to oversee short and long-term interventions in fixing the country’s freight logistics system.

v Approval of the National Water Resources Infrastructure Agency Bill for tabling in parliament, aimed at establishing of the agency as one dedicated to managing and investing in bulk water resource infrastructure.

v Establishment of a one-stop shop for energy projects, to accelerate private investment in new generation capacity, facilitating regulatory authorisations for energy projects, with the aim of establishing a single, fully electronic application process.

v Progress in procuring new generation capacity to close the gap in electricity supply, with nine projects from bid window 5 having reached financial close to date and a further four expected to close next month.

“Since the establishment of Operation Vulindlela, government has made meaningful strides in implementing structural reforms to stabilise South Africa’s energy supply,” said the report.

“Reforms have also included establishing a competitive logistics network, improving the quality of digital communications and reforming the visa regime to enable businesses to attract skills needed and to making it easier for tourists to experience a worldclass African destination.”

It added: “New reforms which have been identified since Operation Vulindlela was initiated include creating an enabling environment for hemp and cannabis; developing a strategy for the devolution of passenger rail, putting in place an enabling regime for state-owned enterprises to procure efficiently and eliminating the backlog in title deeds for subsidised housing.”