President Cyril Ramaphosa says the government will initiate a second wave of reforms to unleash more rapid and inclusive growth with the immediate focus on Eskom, Transnet and other state-owned entities (SOEs) over the coming year.
Ramaphosa pointed out that as Eskom and Transnet were vital for the economy to function properly, the government will be repositioning these entities to provide world-class infrastructure while enabling competition in operations through electricity generation, freight rail or port terminals.
“We continue with the fundamental reform of our state-owned enterprises to ensure that they can effectively fulfil their social and economic mandates,” Ramaphosa said.
“This includes the work underway to put in place a new model to strengthen governance and oversight of public entities.
“We will ensure public ownership of strategic infrastructure for public benefit while finding innovative ways to attract private investment to improve services and ensure public revenue can be focused on the provision of public services.”
Frequency of loadshedding reduced
Ramaphosa also said that the state was in the process of establishing a dedicated SOE reform unit to coordinate this work.
He said: “The measures we have implemented through the Energy Action Plan have reduced the severity and frequency of loadshedding, with more than 300 days without loadshedding since March 2024.
“While the return of loadshedding for two days last week was a reminder that our energy supply is still constrained, we remain on a positive trajectory.
“We now need to put the risk of loadshedding behind us once and for all by completing the reform of our energy system to ensure long-term energy security.”
The president said that the Electricity Regulation Amendment Act, which came into effect in January, marked the beginning of a new era.
“This year, we will put in place the building blocks of a competitive electricity market. Over time, this will allow multiple electricity generation entities to emerge and compete.
“We will mobilise private sector investment in our transmission network to connect more renewable energy to the grid.
“As we reform our energy system, we are continuing to build successful multilateral partnerships in the global effort to halt the devastating impact of climate change.”
Revitalisation of port terminals
He pointed out that the government-initiated Just Energy Transition, a national programme that aims to achieve a low-carbon future, was gaining momentum.
“Over $13-billion (about R329-billion) has been pledged by the international community, and significant private capital is being invested locally.
“We are determined to meet our carbon reduction commitments and will do so at a pace and scale that our country can afford.”
He also revealed how the government will revitalise port terminals and rail corridors through the freight logistics roadmap, with the aim of leveraging private capital to restore them to world-class standards.
“Transnet’s performance has stabilised and is steadily improving. We released a network statement in December 2024, which, for the first time, will enable private rail operators to access the freight rail system.
“Open access to the rail network will allow train operating companies to increase the volume of goods transported by rail, while our network infrastructure remains state-owned.
“This will ensure that South African minerals, vehicles, and agricultural produce reach international markets, securing jobs and earning much-needed revenue for our fiscus.
“New cranes and other port equipment are being commissioned to speed up the loading and unloading of cargo and reduce waiting times for ships in our ports.”
Reform agenda still on track
He added that the government of national unity was forging ahead with the reform agenda to ensure a secure and reliable supply of water across the country.
“Many people in our cities, towns, and villages are experiencing more and more frequent water shortages as a result of failing water infrastructure,” said the president.
“It is impossible to live without water, and it is impossible for the economy to grow without water. We are therefore taking a series of decisive actions to resolve the water crisis, to enable our people to get water where they live, whether in townships or rural areas.
“We are investing heavily in expanding our water resources. To date, the infrastructure fund has secured R23-billion for seven large water infrastructure projects.”
He continued: “We have ended delays in major water infrastructure projects like phase two of the Lesotho Highlands Water Project and the uMkhomazi Dam.
“Work is underway to prepare for construction of the Ntabelanga Dam on the uMzimvubu River to supply additional water for domestic use and for irrigation in the Eastern Cape.”
He said that within the next year, the state will complete the establishment of the National Water Resource Infrastructure Agency to unlock much greater investment in water projects.
“Through the Water Services Amendment Bill, we will introduce a licensing system for water service providers and remove licences where providers do not meet the standards for quality drinking water.”
