Over the next year, government will unleash a second wave of reforms aimed at unlocking the potential of South Africa's economy.
This is according to President Cyril Ramaphosa who delivered the State of the Nation Address (SONA) - the first of the seventh administration - at the Cape Town City Hall, on Thursday evening.
"The [current] economic reforms that we are implementing through Operation Vulindlela have created a new sense of optimism and confidence in our economy. We have made progress in rebuilding and restructuring a number of our network industries.
"We are seeing positive results in the improvement of the functioning of our network industries as well as the investment opportunities that are opening up and are being taken by investors leading to job creation.
"Working together with business, labour and other social partners we must now finish this work. Over the coming year, we will initiate a second wave of reforms to unleash more rapid and inclusive growth," President Ramaphosa said.
The President explained that the first point of focus for these reforms lies with state-owned enterprises (SOEs), particularly Eskom and Transnet, which he described as "vital to our economy to function optimally".
To propel this work forward, a dedicated SOE Reform Unit is in the process of being established.
"We are repositioning these entities to provide world-class infrastructure while enabling competition in operations, whether in 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. This includes the work underway to put in place a new model to strengthen governance and oversight of public entities," President Ramaphosa explained.
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Electricity reform
A key reform is in South Africa's energy sector, with the implementation of the Electricity Regulation Amendment Act which came into effect this year.
The President described this Amendment Act as the "beginning of a new era" that will unlock a competitive electricity market.
"We now need to put the risk of load shedding behind us once and for all by completing the reform of our energy system to ensure long-term energy security. The Electricity Regulation Amendment Act, which came into effect on the 1st of January, marks 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," he said.
With the current and a new wave of reforms, the President said, "we are steadily removing the obstacles to meaningful and faster growth".
