The Business Leader South Africa (BLSA) Reform Tracker has recorded an all-time decline in reform momentum in the second quarter of 2026.
The reform completion index fell to 71.5 from 71.7, indicating a reverse in reform implementation.
The reform tracker is an independent tool used to assess how reforms are being carried out. It aims to ensure the focus shifts from making promises about reform to delivering real results.
The tracker also monitors the country’s progress and identifies the areas where further improvements are still needed.
‘Seeing more reforms declining’
Busisiwe Mavuso, BLSA chief executive, said it was concerning that quarter-on-quarter reform momentum had reversed since the tracker was established.
“We are seeing more reforms declining than advancing and that should concern all of us. It does not mean that reforms have failed, it means that the pace of implementation is beginning to slow.
“It means that some of the reforms that matter the most for long-term investment and growth are starting to slow down and starting to not deliver the progress that we would have hoped they would deliver by now,” said Mavuso.
Freight, logistics and energy biggest areas of concern
She highlighted that the biggest areas of concern emerge in freight and logistics, and energy.
She said these sectors remain important in the country and reform implementation delays, missed deadlines and uncertainty on critical institutional reforms slow down private investment.
Stuart Theobald, Krutham executive chairman, said the decline in the reform completion index is an unusual and unexpected outcome considering that it meant that nothing changed for the better.
According to the trackers, electricity score dropped from 69.1 to 67.5. While no loadshedding is expected during winter, renewable power producers face a R2-bilion compensation backlog, with some losing around 9% of expected revenue.
Municipal debt to Eskom has surpassed R114-billion, while only 270.8km of transmission lines were completed against 423km target.
“On the one hand it is very positive that loadshedding has effectively come to an end and there is forecasted no loadshedding during winter and Eskom projecting capacity surplus is now 5GW as a result of plant reliability,” said Theobald.
Unclear how to resolve R2bn backlog
He said it was unclear how the R2-billion backlog would be resolved and flagged it as a negative for renewable energy policy objectives.
Freight and logistics also dropped by 0.5% to 68.8 but recorded a positive as Transnet signed access agreements with 11 new private rail operators from one to 12. The changes are expected to add 24-million tonnes of freight a year.
Criminal justice also eased from 84.8 to 84.2, while the Extradition Bill improved from 62.5 to 65. The Protected Disclosure Bill, however, remained unchanged.
Despite the declines, Theobald also highlighted improvements in governance areas, noting the Public Service Amendment Act’s implementation score which jumped from 62.5 to 75 – the single largest gain within governance this quarter.
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- The Business Leader South Africa (BLSA) Reform Tracker reported a decline in reform momentum in Q2 2026, with the reform completion index dropping from 71.7 to 71.5, signaling slower reform implementation.
- Chief Executive Busisiwe Mavuso expressed concern about the reversal, noting key reforms crucial for investment and growth, especially in freight, logistics, and energy, are slowing down.
- Energy sector challenges include a drop in the electricity score (69.1 to 67.5), a R2-billion backlog in payments to renewable power producers, and significant municipal debt to Eskom exceeding R114 billion.
- Despite improvements like no expected winter loadshedding and Transnet signing agreements with new private rail operators, important delays and uncertainties persist, impacting private investment.
- Governance reforms saw some progress with the Public Service Amendment Act's implementation score increasing significantly from 62.5 to 75, the largest governance gain this quarter.
Busisiwe Mavuso, BLSA chief executive, said it was concerning that quarter-on-quarter reform momentum had reversed since the tracker was established.
“We are seeing more reforms declining than advancing and that should concern all of us. It does not mean that reforms have failed, it means that the pace of implementation is beginning to slow.
“It means that some of the reforms that matter the most for long-term investment and growth are starting to slow down and starting to not deliver the progress that we would have hoped they would deliver by now,” said Mavuso.
Stuart
Municipal debt to Eskom has surpassed R114-billion, while only 270.8km of transmission lines were completed against 423km target.
“On the one hand it is very positive that loadshedding has effectively come to an end and there is forecasted no loadshedding during winter and Eskom projecting capacity surplus is now 5GW as a result of plant reliability,” said
He said it was unclear how the R2-billion backlog would be resolved and flagged it as a negative for renewable energy policy objectives.
Freight and logistics also dropped by 0.5% to 68.8 but recorded a positive as Transnet signed access agreements with 11 new private rail operators from one to 12.
Criminal justice also eased from 84.8 to 84.2, while the Extradition Bill improved from 62.5 to 65.
Despite the declines,
ALSO READ: Ramaphosa warned reforms falling behind - little has changed
