Operation Vulindlela 2.0: Ramaphosa Unveils Bold Plan to Fix Broken Municipal Services

President Cyril Ramaphosa has launched a major new phase of Operation Vulindlela, this time with a strong focus on overhauling South Africa’s troubled municipalities—many of which are struggling to deliver even the most basic services like water and electricity.

Announced on Wednesday, Operation Vulindlela 2.0 marks the start of a national effort to untangle service delivery from political interference by allowing municipalities to contract outside providers or professional entities for operational delivery, while still maintaining constitutional authority over services.

“We want every South African to feel the benefits of rapid, sustained, and inclusive economic growth,” said Ramaphosa.

Why Municipal Reform Matters Now

A 2024 report by Ratings Afrika found a large portion of the country’s 112 municipalities are in financial distress, with service delivery systems on the brink. Poor infrastructure, under-investment, and unsustainable funding models have created a “vicious cycle” where failing services lead to lower payment rates, further undermining revenue.

Saul Musker, Director of Strategy and Delivery Support in The Presidency, explained that in South Africa, municipal services are largely integrated. Revenue from trading services—like electricity—is pooled into general funds, often used to cover salary payments instead of infrastructure. This model, he said, needs serious reform.

What’s Changing Under Operation Vulindlela 2.0?

While municipalities will keep their legal authority over services, they will now be able to choose more flexible models for how those services are delivered. These may include:

• Public-private partnerships

• Independent utilities within the municipality

• Regional service providers

• Concessions to professional operators

The goal is to enable municipalities to invest in and manage infrastructure more sustainably, with regulatory oversight ensuring that minimum service standards are met.

If a municipality fails to deliver, national regulators will have the authority to step in and enforce corrective action, including mandating the appointment of capable service providers.

Building on Phase 1 Successes

Operation Vulindlela, a collaboration between The Presidency and National Treasury, was launched in 2020 to accelerate structural economic reforms. The first phase focused on:

• Liberalising the electricity sector (unlocking 22,500 MW of private energy projects)

• Halving mobile data costs

• Reducing water license approval times from 300 to 90 days

• Unlocking R500 billion in new investments, with R400 billion in energy alone

With 94% of initial reforms either completed or progressing well, the shift to municipalities signals a strategic push to fix local governance, which has long been a bottleneck to inclusive economic growth.

A New Vision for Local Government

The broader review of South Africa’s local government model—including the White Paper on Local Government—will assess how municipalities are funded, structured, and held accountable. The reforms are designed to tackle deep-rooted spatial inequality, where poor residents often spend up to 40% of their income on commuting due to broken local economies.

Ramaphosa said this phase of Vulindlela could be transformative for South Africans—especially younger generations who have “never known what it is to live in a growing economy.”

Accountability and Delivery

National Treasury Director-General Duncan Pieterse stressed that Vulindlela is not about centralising power. Instead, it’s about coordination, support, and ensuring that implementing departments take responsibility for reforms.

“The lines of accountability mustn’t blur,” said Pieterse.

The success of Operation Vulindlela 2.0 will depend on firm leadership, tight focus, and sustained implementation. If it works, it could finally turn the tide on South Africa’s service delivery failures and lay the groundwork for inclusive growth.

{Source: MoneyWeb}

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