GNU committed to sustaining Operation Vulindlela momentum, says Ramaphosa

President Cyril Ramaphosa launched the second phase of Operation Vulindlela at the Union Buildings in Pretoria on Wednesday.

GCIS/Supplied/Elmond Jiyane

On Wednesday,President Cyril Ramaphosa launched Phase Two of Operation Vulindlela at the Union Buildings in Pretoria.He said the government of national unity had committed to sustaining the momentum Operation Vulindlela sustained on the economic reform agenda.He also outlined several initiatives that were under way to ensure that the government achieves the reforms set in the first phase.President Cyril Ramaphosa says “the days of standing by and watching while taps in our townships,factories,and rural areas run dry [or] sewage runs into,not only our rivers,but into homes of our people,should be over”.

“We want that to end. We will take action to make sure that the right of every South African to quality drinking water is protected,and the right for our industries to function properly without good water will also be something that we see happening.”

He was launching Phase Two of Operation Vulindlela at the Union Buildings on Wednesday,where he pointed out that the government was in the process of establishing the National Water Resources Infrastructure Agency as a dedicated entity to own,manage,and invest in water resources.

Initiated in October 2020,in the aftermath of the Covid-19 pandemic,Ramaphosa’s administration developed the government’s flagship economic reform programme to address stagnant economic growth and rising unemployment.

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The first phase addressed energy,water,logistics,telecommunications and the visa system.

The second phase will prioritise improving performance in local government,spatial inequality and digital transformation.

READ | SA's new water agency to seek private money to fund projects

In March 2022,Bloomberg reported that the government had begun the process of establishing a new utility to help it entice private investment in infrastructure,needed to head off potentially crippling water shortages.

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At the time,the Department of Water and Sanitation had planned to submit a Bill to the Cabinet that set out proposals for the creation of the National Water Resources Agency,according to Sean Phillips,its director-general.

The report stated that the entity would be created by combining the department’s Water Trading Entity and the Trans-Caledon Tunnel Authority (TCTA).

With Africa’s most industrialised economy and a growing population,South Africa was reportedly struggling to keep pace with the demand for water.

The country is one of the world’s 30 driest,with rainfall,while variable across the nation,averaging less than 500 millimetres per annum. Climate change is expected to make it even more arid.

The report further stated that a national water plan released in 2019 revealed that R900 billion needed to be spent on water-supply and storage infrastructure by 2030.

READ | 'There will be resistance': Masondo vows reforms at ailing municipalities

Ramaphosa said the government had found that when there were dedicated agencies,like the South African National Roads Agency (Sanral),there was a better focus on issues.

The same will be done to address water challenges.

To further manage the water crisis,Ramaphosa said,through the Water Partnerships Office,the government would support public-private partnerships in water infrastructure to reduce leaks,access new water sources,and improve wastewater treatment.

This the government will be able to do as a national agency to achieve greater efficiencies.

He added:

To address the root causes of service delivery failures,we will amend the Water Services Act to separate the role of municipalities as water service authorities and water service providers.

Separating the two roles will lead to greater capabilities and efficiencies.

In the energy sector,Ramaphosa said the government would establish a competitive electricity market governed by the Electricity Regulation Amendment Act,which was enacted earlier this year.

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“This is a revolutionary change for our country because we are now beginning to embark on a journey that many other countries have embarked upon years ago.”

Ramaphosa cited China,which was pursuing socialism with Chinese characteristics.

“You would have expected that they would have been the ones who would hold on to the only government and state-owned electricity generation,distribution,as well as transmission system. They have introduced competition. They have introduced a number of generators so that they can compete against each other to bring costs down.”

In South Africa,Ramaphosa said that would enable multiple generators to compete to produce electricity at the lowest cost and with the greatest efficiency.

“To support this,we will complete the restructuring of Eskom and establish an independent Transmission System Operator to create a level playing field for market competition.

“To address the lack of grid capacity,because our grid is now overloaded,we need 14 000 km of more grid capacity. This is what we are working on. The Minister of Electricity and Energy has launched the first round of Independent Transmission Projects to procure more than 1 000 km of new transmission lines. These reforms will ultimately mean lower costs and a reliable electricity supply for all South Africans.”

In the logistics sector,Ramaphosa said private rail companies would soon be able to operate on the freight rail network,following the publication of the Network Statement by Transnet in December last year.

“This will enable massive investment in rolling stock and enable more goods to be transported by rail,helping our export industries to grow.”

He added that the reforms would generate significant capital and new revenue streams for Transnet,helping to stabilise its operations and enabling it to invest.

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Turning to the visa system,Ramaphosa said the government would ensure that the recommendations of the work visa review were fully implemented and introduce an Electronic Travel Authorisation System to support growth in tourism.

“The Minister of Home Affairs has already introduced the points-based system to make it easier for highly skilled immigrants to come to South Africa and contribute to our economy,while at the same time enforcing our immigration laws more effectively to combat illegal immigration.”

He believes that through these reforms,the government will be able to complete the reform of network industries started in the previous phase and address the binding constraints on growth.

However,he added that it was not enough.

“We need growth that is both rapid and inclusive. We need growth that serves the millions of people in our country who remain unemployed,and the young people who cannot see a way into the labour market. And we need growth that improves people’s daily lives by fixing the infrastructure that is broken.”

Ramaphosa said the government of national unity (GNU) had committed to sustaining the momentum achieved by Operation Vulindlela on the economic reform agenda.

The immediate priority is to follow through on the reforms that are currently under way.

“Much as we are doing all of this,our economy continues to be held back by a number of structural inefficiencies,regulatory and practice inefficiencies,such as the way that work,procurement,and corruption. These are challenges that we are alive to and are addressing,” he said.