Reforms are getting some of their mojo back, with the completion index rising to 72.5, up from 71.3 last quarter. This is its highest reading and is 28.4% above the March 2024 baseline, when tracking began.

The fifth BLSA Reform Tracker Quarterly Review, covering July to September 2026, shows that quarter-on-quarter momentum turned positive again, moving from -0.4% to +1.7%, the strongest reading since the September-December 2025 period.

“In the previous quarter, I was concerned that more reforms were losing ground than advancing, so it is heartening to see that reversed,” says BLSA CEO Busisiwe Mavuso. “It’s also encouraging to see progress in water, energy and transport. These are network sectors and it is crucial to eradicate dysfunctionality. Once they are functioning efficiently, they will provide the foundation on which to build a strong and growing economy.”

The BLSA Reform Tracker monitors reform deliverables across economic, criminal justice, and governance categories. Of the 181 scored this quarter, 179 could be compared like-for-like with the previous quarter; of those, 40 changed score: 33 advanced and seven declined.

Electricity

The electricity reform area rose from 67.8 to 69.4, driven by progress in numerous deliverables.

The Renewable Energy Independent Power Producer Procurement Programme bid window 8 climbed strongly, with government transforming this into a mega bid window. The National Transmission Company South Africa (NTCSA) cleared its R2bn backlog in curtailment payments to independent power producers on 31 August, as promised, lifting the curtailment protocol from 75 to 81.25. President Cyril Ramaphosa also endorsed the Eskom restructuring task team’s phase 1 report on separating transmission from Eskom, lifting full NTCSA unbundling from 75 to 77.5. The municipal debt workout strategy was also escalated to the task team (62.5 to 65), with municipal debt to Eskom now above R119bn.

Not everything advanced. Virtual wheeling protocols fell five points to 76.25, a second consecutive decline, as trading rules were delayed again, now to end-October. The request for proposals for the Independent Transmission Project, originally due in Q3 2026, is now expected in Q2 2027.

Freight logistics

Freight logistics rose from 69.6 to 72.5. The Department of Transport gazetted Transnet’s final Network Statement Version 4 and Rail Access Agreement on 18 September, lifting that deliverable from 62.5 to 87.5. The Network Statement allows cargo owners, and not only licensed train operators, to secure rail capacity directly.

Port concessioning advanced from 75 to 80, and Transnet National Ports Authority corporatisation rose from 62.5 to 70 after Cabinet supported its separation on 23 September.

However, the independent infrastructure manager deliverable fell from 62.5 to 56.25. The structure remains an interim one, and the National Rail Bill has not yet been tabled.

Financial sector

Reforms in this area rose from 88.1 to 89.5, with six deliverables advancing, including the draft Crypto Assets Manual, progress on the JIBAR conversion, the South African Reserve Bank taking over the payment role of the Payments Association of South Africa and a new Financial Sector Conduct Authority standard.

Criminal justice

This category edged up from 84.2 to 84.5 but only one deliverable moved: the Criminal Procedure Bill, from 50 to 55, with discussion papers on the legislation having been published.

The corruption reform area was unchanged at 51.2, and BLSA is concerned that South Africa is now undergoing a new mutual evaluation by the Financial Action Task Force (FATF), following the country’s removal from the grey list in October 2025. Ismail Momoniat, who led the campaign for removal, sees a significant risk of a return to the grey list.

Governance

Governance declined for the first time, from 55.0 to 54.6, after the Constitutional Court declared the Public Procurement Act unconstitutional and invalid because Parliament had not facilitated meaningful public participation at the National Council of Provinces stage. The sound finances score fell from 87.5 to 50, and National Treasury must now table a new bill.

There was progress elsewhere. The Public Service Commission Act, signed on 15 September 2026, will extend the commission’s oversight to local government, lifting that deliverable from 62.5 to 75, and the appointment of a director-general in the Presidency as head of public administration lifted the Public Service Amendment Act deliverable from 62.5 to 75.

Conclusion

BLSA welcomes this quarter’s rebound and looks forward to continued momentum across the reform agenda. We will continue to support government in the various reform processes, from energy and transport to water systems and the municipalities that must deliver services. Reforms of this kind give the economy a stronger foundation to grow, which is what will allow the country to address its many urgent needs, particularly the high unemployment rate.

Against this encouraging picture, BLSA is worried about one area where progress has stalled: the reforms that helped South Africa leave the Financial Action Task Force (FATF) grey list. The country’s exit in October 2025 required it to show a sustained increase in investigations and prosecutions of money laundering networks, and the current evaluation, which runs to October 2027, will assess whether it can keep doing so. Momoniat’s concern is that weaknesses in law enforcement – in investigating organised crime, prosecuting successfully and recovering criminal assets – could count against the country, and the corruption reform area has not moved from 51.2.

 

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