BLSA warns of slowing reform pace due to energy sector issues

According to the latest BLSA Reform Tracker report, despite progress in governance reforms, problems in the electricity and freight logistics sectors have led to a slight decrease in the overall reform completion index.

Overview of Reforms in South Africa

South Africa's economic reform program has lost momentum for the first time since monitoring began. During the second quarter of 2026, the negative impact of energy sector issues outweighed the successes achieved in visa and governance reforms.

The research consulting firm Krutham prepared the latest BLSA Reform Tracker, which showed that the overall reform completion index slightly decreased to 71.5 from April to June, compared to 71.7 in the previous quarter. Nevertheless, this figure remains 26% above the baseline established in March 2024.

The tracker monitors 247 reform tasks across economy, governance, and criminal justice categories. Notably, for the first time since the index was introduced, the number of deteriorating reforms exceeded the number of advancing ones.

Energy Sector Challenges

BLSA CEO Busisive Mavuso noted that the latest results revealed emerging difficulties in implementing key reforms. She emphasized that for the first time this quarter, more reforms were losing ground than gaining it.

Mavuso pointed to growing complexities in the electricity reform, noting that the issues extend far beyond the Eskom unbundling process. The electricity reform index dropped from 69.1 to 67.5 over the quarter, even with Eskom's forecasts of no power outages this winter due to improved plant reliability and reduced demand, which created an excess generation of over 5 GW.

However, the report found that the aggressive restriction on independent renewable energy producers led to the accumulation of compensation payments amounting to about 2 billion rand, and some producers faced income shortfalls of approximately 9%. Furthermore, progress slowed in virtual metering as the final approval of electricity trading rules missed the April deadline, delaying broader participation by private electricity traders. Municipal debt to Eskom exceeds 114 billion rand, and the implementation of new transmission infrastructure has also not met planned targets.

Freight Transport Situation

The freight logistics sector also saw a slight decline, with the reform index dropping to 68.8. The report noted encouraging progress after Transnet's railway infrastructure manager signed railway access agreements with 11 newly qualified private train operators. This expanded the network from one operator to twelve and opened up potential for transporting an additional 24 million tons of cargo annually.

Nevertheless, other reforms continue to face delays, including the National Railway Act, and concerns remain regarding rolling stock availability. Meanwhile, governance reforms showed stronger progress: this category improved from 54.4 to 55.1 over the quarter. The greatest improvement in governance was demonstrated by the implementation of the Public Service Amendment Act and the Public Administration Management Amendment Act, which transfer administrative powers from executive bodies to department heads.

Other Areas and Warnings

Visa reforms also advanced thanks to continuous progress in the electronic travel authorization system, and infrastructure reforms benefited from further digitalization of the Deeds Office. Criminal justice reforms remained generally stable following the improvement in South Africa's removal from the Financial Action Task Force's grey list. The introduction of the Extradition Act into Parliament also contributed to modest improvements.

Despite these achievements, BLSA warned that ongoing delays in energy and transport reforms could undermine broader economic growth. The organization expressed concern that Transnet continues to control many processes aimed at introducing competition into the rail freight sector, while the Economic Transport Regulator has yet to commence operations. A delay in establishing an independent transmission system operator was also noted, as an effective competitive electricity market cannot function without it.

BLSA stated that successful implementation of reforms remains critical for improving South Africa's long-term growth prospects. The organization emphasized that 'efficiently functioning energy, transport, and logistics markets, as well as water supply systems and municipalities capable of providing services, will provide a solid foundation for significant economic growth. And this will enable the country to be in a much better position to address many urgent problems, especially high unemployment.'

iol.co.zaJuly 29, 21:00

Report shows improvement in B-BBEE compliance over a decade, but slowdown after Covid-19

According to the report, South Africa's transformation landscape demonstrated an increase in B-BBEE compliance levels between 2013 and 2023. However, a slight decline in this indicator was noted between 2020 and 2023.

B-BBEE Data Analysis

The new report, released by the B-BBEE Commission, analyzed B-BBEE score data for the last decade. This report was prepared in collaboration with the South African Competition Commission, the President's Advisory Council on B-BBEE, the Department of Trade, Industry and Competition (dtic), and the South African National Accreditation System (SANAS).

The Commission stated that the study was conducted as part of its mandate to monitor and deepen the understanding of economic transformation in South Africa. The analysis was based on B-BBEE certificates and compliance reports provided by both state and private entities required to report under the Broad-Based Black Economic Empowerment Act.

Key Achievements and Challenges

B-BBEE Commissioner Chesediso Matona noted that the report provides valuable insight into the country's transformation journey. He emphasized that analyzing the ten-year figures allows for the identification of achieved successes, areas of stagnation, and opportunities to accelerate transformation, while also contributing to the evidence base for strengthening policy and promoting a more inclusive economy.

Over the last decade, the number of organizations assessed for compliance has steadily grown, providing a broader database for measuring transformation. Although the overall compliance level increased significantly from 2013 to 2023, the Commission noted a minor drop between 2020 and 2023, indicating that the Covid-19 pandemic disrupted transformation efforts.

The report showed that Exempt Micro Enterprises (EMEs) continue to demonstrate the highest levels of compliance, as they automatically qualify as Level 4 B-BBEE participants under the legislation. Asset ownership showed the largest growth among key certificate elements over the decade. Average ownership scores rose from 12.4 points (50% of available) in 2013 to 19.2 points (77%) in 2018, and then reached 21.4 points (86%) by 2023.

Significant improvement was also observed in enterprise and supplier development, which increased from 19% of available points in 2013 to 66% in 2023, reflecting strengthened business efforts in transforming supply chains. Skills development improved substantially, rising from 17% of available points in 2013 to over 60% in both 2018 and 2023, indicating sustained investment in black talent development. Socio-economic development continued to exceed the set target throughout the period, reaching 135% of the target in 2023.

Areas of Transformation Slowdown

However, the report also identified several areas where transformation has stalled. Corporate governance improved between 2013 and 2018, but progress has been minimal since then, reaching only 54% of available points by 2023. Transformation at the board and senior management level remains particularly slow, with only marginal improvement over the entire decade.

The Commission found that although the proportion of black women ownership exceeded the minimum target of 10%, it remained relatively modest—at 13.6% in 2023. Furthermore, the economic interest of black shareholders continued to outweigh their voting rights, suggesting that despite increased ownership, decision-making power has not always shifted proportionally.

Sectoral Differentiation and Conclusions

The report revealed significant differences in transformation outcomes across economic sectors. Agriculture, real estate, and financial services were among the least successful sectors, recording some of the highest non-compliance rates in 2023. According to the data, the non-compliance rate was 50% in agriculture, 67% in real estate, and 62% in financial services. Corporate governance and skills development were identified as general areas of underperformance across most economic sectors.

Matona concluded that the findings indicate that while significant progress has been made over the last decade, further work is needed to ensure coverage across all economic sectors. He added that the report confirms that South Africa has made measurable progress in implementing B-BBEE over the past decade, while also reminding that transformation is an ongoing national project.