The country’s reform programme gained fresh momentum during the third quarter of this year, with the overall reform completion index rising to a record 72.5, driven largely by advances in economic reforms.
The index increased from 71.3 in the previous quarter and stands 28.4% above its March 2024 baseline, according to the latest Business Leadership SA Reform Tracker Quarterly Review. Economic reforms were the main contributor to the improvement, while governance reforms registered their first decline since tracking began.
Economic reforms drive progress
The economic reform completion index rose 2.4% during the quarter, increasing from 71.9 to 73.6. Business Leadership South Africa said improvements in freight logistics, digital transformation, water, energy and financial-sector reforms helped lift the overall score. Economic reforms account for 74.6% of the weightings used in the tracker, making them the most influential category.
Read more: Eskom wants another 8% electricity price hike, MPs demand answers about R122bn debt
Among the strongest gains was digital transformation, where the launch of the zero-rated gov.za platform boosted progress significantly. Freight logistics also improved after the government gazetted the final Network Statement and Rail Access Agreement on 18 September. The publication is viewed as a key step towards opening South Africa’s rail network to greater private-sector participation.
Rail and ports reforms advance
Progress was also recorded in port and rail restructuring. Cabinet approved the separation of the Transnet National Ports Authority into a standalone state-owned company, a reform long sought by business and logistics stakeholders. At the same time, the freight logistics reform index increased from 69.6 to 72.5.
Read more: Transnet defends profit boosted by R10.5bn Durban terminal sale
However, major challenges remain in the logistics sector. Transnet disclosed a substantial maintenance funding shortfall and requested an additional R26 billion from National Treasury for rail infrastructure rehabilitation. Procurement irregularities and operational disruptions at Durban Gateway Terminal also highlighted continuing weaknesses in the transport network.
Energy reform momentum builds
Energy reforms continued to advance, supported by progress on electricity market restructuring and transmission-sector reforms. The Development Bank of Southern Africa issued a request for proposals for a transaction adviser to guide the creation of an independent transmission system operator and oversee Eskom’s further unbundling. The process sets out an 18-month implementation timeline and is seen as a shift from policy discussions to execution.
The Department of Electricity and Energy also released a revised Electricity Pricing Policy and an electricity market transformation position paper for public consultation. While welcomed as important milestones, the report warns that both documents require more detailed implementation frameworks and stronger stakeholder engagement.
Water and housing reforms gain ground
The water reform index climbed from 68.4 to 71.1 after President Cyril Ramaphosa launched the National Water Action Plan in July. The plan introduces a dedicated implementation structure, Watercom, and targets municipal water failures, infrastructure investment and corruption within the sector. The tracker identified water reform as one of the stronger-performing areas during the quarter.
Meanwhile, reforms aimed at reducing spatial inequality received a boost after government quantified the national title deeds backlog at more than 1 million properties. Gauteng accounts for the largest share, with nearly 242,000 outstanding deeds. The tracker estimates that, at current transfer rates, it could take almost 40 years to eliminate the backlog.
Governance suffers first setback
Despite stronger economic performance, governance reforms moved backwards for the first time since the tracker was launched. The governance completion index declined from 55.0 to 54.6 after the Constitutional Court declared the Public Procurement Act unconstitutional and invalid because of inadequate public participation during the legislative process. The ruling forced the sound finances reform index to fall sharply from 87.5 to 50.
Some governance gains were nevertheless recorded. The signing of the Public Service Commission Act expanded the commission’s oversight powers to local government and state-owned entities. Public service and local government reform indicators both improved during the quarter.
Anti-corruption concerns persist
Criminal justice reforms remained the strongest-performing category overall, with a completion index of 84.5. However, activity in the sector was limited, with only one tracked reform advancing during the quarter. Concerns remain around anti-corruption reforms and South Africa’s preparedness for its latest assessment by the Financial Action Task Force (FATF).
BLSA CEO Busisiwe Mavuso warned that insufficient progress in tackling corruption and strengthening law-enforcement capacity could undermine South Africa’s standing following its removal from the FATF grey list in 2025. The review highlighted concerns raised by acting National Treasury director-general Ismail Momoniat regarding weaknesses in organised crime investigations and asset recovery.
Key milestones ahead
Looking ahead to the fourth quarter, the tracker identifies several critical milestones, including Cabinet consideration of the National Rail Bill, the transition from JIBAR to ZARONIA benchmark rates, and publication of a detailed implementation plan for the second phase of National Transmission Company South Africa unbundling. Several major port concession tenders are also expected to close before February 2027.
While reform momentum has strengthened, the report cautions that sustained implementation will be necessary to convert policy announcements into measurable economic outcomes. The tracker noted that 139 of 179 monitored deliverables remained unchanged during the quarter, underlining the scale of work still required to improve South Africa’s business environment.
- South Africa's reform completion index increased to a record 72.5 in Q3 2024, driven mainly by economic reforms, up from 71.3 the previous quarter.
- Economic reforms improved by 2.4%, supported by advances in freight logistics, digital transformation, water, energy, and financial sectors.
- Governance reforms declined for the first time, with the index dropping from 55.0 to 54.6 after the Constitutional Court invalidated the Public Procurement Act.
- Energy reforms progressed with initiatives like the creation of an independent transmission system operator and revised electricity pricing policies under public consultation.
- Water and housing reforms advanced, including the launch of the National Water Action Plan and the quantification of a backlog of over 1 million national title deeds.
The country's reform programme gained fresh momentum during the third quarter of this year, with the overall reform completion index rising to a record 72.5, driven largely by advances in economic reforms.
The index increased from 71.3 in the previous quarter and stands 28.4% above its March 2024 baseline, according to the latest Business Leadership SA Reform Tracker Quarterly Review. Economic reforms were the main contributor to the improvement, while governance reforms registered their first decline since tracking began.
The economic reform completion index rose 2.4% during the quarter, increasing from 71.9 to 73.6. Business Leadership South Africa said improvements in freight logistics, digital transformation, water, energy and financial-sector reforms helped lift the overall score. Economic reforms account for 74.6% of the weightings used in the tracker, making them the most influential category.
Read more: Eskom wants another 8% electricity price hike, MPs demand answers about R122bn debt
Among the strongest gains was digital transformation, where the launch of the zero-rated gov.za platform boosted progress significantly. Freight logistics also improved after the government gazetted the final Network Statement and Rail Access Agreement on 18 September. The publication is viewed as a key step towards opening South Africa's rail network to greater private-sector participation.
Progress was also recorded in port and rail restructuring. Cabinet approved the separation of the Transnet National Ports Authority into a standalone state-owned company, a reform long sought by business and logistics stakeholders. At the same time, the freight logistics reform index increased from 69.6 to 72.5.
Read more: Transnet defends profit boosted by R10.5bn Durban terminal sale
However, major challenges remain in the logistics sector. Transnet disclosed a substantial maintenance funding shortfall and requested an additional R26 billion from National Treasury for rail infrastructure rehabilitation. Procurement irregularities and operational disruptions at Durban Gateway Terminal also highlighted continuing weaknesses in the transport network.
Energy reforms continued to advance, supported by progress on electricity market restructuring and transmission-sector reforms. The Development Bank of Southern Africa issued a request for proposals for a transaction adviser to guide the creation of an independent transmission system operator and oversee Eskom's further unbundling. The process sets out an 18-month implementation timeline and is seen as a shift from policy discussions to execution.
The Department of Electricity and Energy also released a revised Electricity Pricing Policy and an electricity market transformation position paper for public consultation. While welcomed as important milestones, the report warns that both documents require more detailed implementation frameworks and stronger stakeholder engagement.
The water reform index climbed from 68.4 to 71.1 after President Cyril Ramaphosa launched the National Water Action Plan in July. The plan introduces a dedicated implementation structure, Watercom, and targets municipal water failures, infrastructure investment and corruption within the sector. The tracker identified water reform as one of the stronger-performing areas during the quarter.
Meanwhile, reforms aimed at reducing spatial inequality received a boost after government quantified the national title deeds backlog at more than 1 million properties. Gauteng accounts for the largest share, with nearly 242,000 outstanding deeds. The tracker estimates that, at current transfer rates, it could take almost 40 years to eliminate the backlog.
Despite stronger economic performance, governance reforms moved backwards for the first time since the tracker was launched. The governance completion index declined from 55.0 to 54.6 after the Constitutional Court declared the Public Procurement Act unconstitutional and invalid because of inadequate public participation during the legislative process. The ruling forced the sound finances reform index to fall sharply from 87.5 to 50.
Some governance gains were nevertheless recorded. The signing of the Public Service Commission Act expanded the commission's oversight powers to local government and state-owned entities. Public service and local government reform indicators both improved during the quarter.
Criminal justice reforms remained the strongest-performing category overall, with a completion index of 84.5. However, activity in the sector was limited, with only one tracked reform advancing during the quarter. Concerns remain around anti-corruption reforms and South Africa's preparedness for its latest assessment by the Financial Action Task Force (FATF).
BLSA CEO Busisiwe Mavuso warned that insufficient progress in tackling corruption and strengthening law-enforcement capacity could undermine South Africa's standing following its removal from the FATF grey list in 2025. The review highlighted concerns raised by acting National Treasury director-general Ismail Momoniat regarding weaknesses in organised crime investigations and asset recovery.
Looking ahead to the fourth quarter, the tracker identifies several critical milestones, including Cabinet consideration of the National Rail Bill, the transition from JIBAR to ZARONIA benchmark rates, and publication of a detailed implementation plan for the second phase of National Transmission Company South Africa unbundling. Several major port concession tenders are also expected to close before February 2027.
While reform momentum has strengthened, the report cautions that sustained implementation will be necessary to convert policy announcements into measurable economic outcomes. The tracker noted that 139 of 179 monitored deliverables remained unchanged during the quarter, underlining the scale of work still required to improve South Africa's business environment.
