Business Leadership South Africa released its quarterly Reform Tracker last week, revealing slowing momentum on electricity and logistics reforms despite progress in other areas. CEO Busisiwe Mavuso warned that with load-shedding behind the country and ports performing better, South Africa risks falling into reform complacency. The concern centers on a country with 32% unemployment where current improvements may not be sufficient to deliver the growth needed to reduce joblessness.
Home Affairs Extends Trusted Employers Visa Scheme
Home Affairs gazetted an extension of the Trusted Employers scheme last week after the Tracker's quarter concluded. The scheme allows qualifying employers to expedite visas for skilled staff. The Tracker credited Home Affairs for progress on electronic visas, which streamline access for tourists and boost visitor numbers. Progress in public service reform was also noted as groundwork for improving local government and civil service performance.
Electricity Reform Deadlines Pushed to September
Wheeling protocols enabling electricity generators to sell power over the grid to customers missed their April deadline and have been pushed to September. Regulations for the South African wholesale electricity market are facing delays. Independent power producers are having production curtailed, and Eskom now owes almost R2bn for electricity not used. The unbundling of the independent system operator from Eskom has been delayed despite being government policy. Mavuso stated this is no longer a matter for negotiation but a matter of implementing what has already been decided.
Port Concessioning Advances with R11.1 Billion Durban Investment
The draft Volume 4 of the Network Statement was published earlier this month, setting out terms for private operators to access the rail network. Cape Town's container terminal joined the concessioning process last week alongside Durban, Richards Bay, the Cape Town liquid-bulk terminal and Ngqura. Durban Gateway Terminal reached financial close, opening the way to R11.1 billion in new investment. The Transport Economic Regulator essential to overseeing a competitive rail market is not yet operational. The unbundling of the rail infrastructure manager from Transnet to create an independent provider of rail access is going backwards according to the Tracker.
FAQ
What did the BLSA Reform Tracker find last week?
The BLSA Reform Tracker released last week found slowing momentum on electricity and logistics reforms in South Africa, despite progress in areas like visa processing and public service reform. Key concerns include missed deadlines for wheeling protocols (pushed from April to September) and delays in unbundling Eskom's independent system operator.
How much does Eskom owe independent power producers?
Eskom owes almost R2bn for electricity not used from independent power producers whose production has been curtailed, according to the Reform Tracker findings.
What is the investment value of the Durban Gateway Terminal project?
The Durban Gateway Terminal reached financial close, opening the way to R11.1 billion in new investment as part of South Africa's port concessioning process.
