Johannesburg: The implementation of structural reforms has liberalised the energy market; shifted it away from reliance on Eskom; resolved Eskom's debt and enabled the power utility to invest in repairing and maintaining its energy generation infrastructure.
According to South African Government News Agency, Deputy Finance Minister, Dr David Masondo, highlighted the success of these reforms during a recent address. He stated, "The structural reforms are paying off. We have liberalised the energy market, and we no longer depend solely on Eskom for our electricity supply." This shift has been facilitated by Operation Vulindlela, a government initiative focused on unlocking growth, strengthening infrastructure, and enhancing state capabilities.
The resolution of Eskom's R420 billion debt has played a significant role in strengthening the power utility's capacity to invest in its infrastructure. "As a result, we are currently not experiencing load shedding," Masondo noted. He emphasized the importance of continuing these reforms to mitigate global economic challenges and external shocks. Further measures, such as boosting investment in renewable energy and gas, are necessary to diversify energy sources and prevent future disruptions.
Masondo's remarks were made during the launch of Phase 3 of the Towards Inclusive Economic Development (SA-TIED) programme. This initiative aims to support policymaking in South Africa by collaborating with researchers to bridge knowledge gaps essential for inclusive growth and economic transformation. Phase III, which will run from 2026 to 2029, seeks to consolidate and expand upon previous achievements.
The programme's focus will include public revenue mobilisation, poverty, inequality, labour markets, macro-fiscal analysis, and climate-related challenges in food, energy, and water sectors. A new emphasis on public expenditure aims to improve the efficiency and impact of spending, which is crucial in an environment of constrained fiscal space.
Phase III will concentrate on three core priorities: deepening research for evidence-based policymaking, enhancing data infrastructure, and building state capability through training and skills development. "Ultimately, sustainable reform depends not only on good ideas, but on the capacity to implement them," Masondo stated, highlighting the need for agile and informed governance in uncertain times.
The National Treasury remains committed to maintaining partnerships with government, academia, and development partners to ensure evidence-based reforms are delivered. The programme's success is attributed to long-term collaboration with UNU-WIDER, which provides global expertise and methodological rigour. The European Union and the United Kingdom's ongoing support has also been instrumental in building lasting institutional capability.