BLSA
Bulletin
BLSA Bulletin | 19th Edition
Introduction
South Africa’s reform agenda has continued to advance, but progress remains uneven, and implementation capacity is still a major constraint. In the first four months of 2026, BLSA focused on practical support for government reforms, clear policy advocacy informed by member input, and sustained public engagement to strengthen confidence in South Africa’s growth prospects.
During the period, we continued to provide technical support to Operation Vulindlela (OV) for the implementation of pro-growth reforms in energy, logistics, water, local government and municipal reform, alongside the governance arrangements now in place for the Technical Support Facility.
The second and third BLSA Reform Tracker quarterly reviews show meaningful improvement from the March 2024 baseline, while highlighting areas of concern, such as electricity-sector regression, a decline in freight logistics performance, and a second consecutive quarter of stalled governance reforms.
On the social policy front, the proposed amendments to the BBBEE Codes of Good Practice have led to serious concerns among members, as detailed in BLSA’s comprehensive written submission to the dtic. While fully supporting the transformation objectives of the amendments, BLSA has been vocal about several provisions that would produce outcomes contrary to those objectives.
With trade relations high on the national agenda, we continue to track developments in the AfCFTA, SACU, and AGOA, where South Africa’s continued participation beyond 2026 remains uncertain, even if the agreement is extended. Progress on AfCFTA implementation remains a relevant context for BLSA members, particularly as trade negotiations with China proceed, and WTO matters remain unresolved.
In this edition, we also note the evolving configuration for Eskom unbundling and the renewed policy direction towards an independent Transmission System Operator, alongside the implementation risks that remain. BLSA will be closely monitoring the revised Electricity Pricing Policy as the public comment process unfolds,
BLSA held several high-value member engagements during the period. What stood out from the sessions with Operation Vulindlela’s Rudi Dicks, and the Minister of Cooperative Governance and Traditional Affairs, Velenkosini Hlabisa was the critical importance of credible municipal reform and improved service delivery to economic renewal, which is one of BLSA’s focus areas for the year.
As highlighted in the bulletin, the review of the 1998 White Paper on Local Government is a critical opportunity for business to shape workable mechanisms for structured private-sector participation as the policy is gazetted for public comment.
The period also saw sustained media and speaking engagements that positioned business as a constructive partner, while keeping focus on accountability, governance, and the practical constraints facing investment and competitiveness.
Welcoming BLSA’s new Board
In April BLSA elected a new Board of Directors. We are indebted to BLSA’s outgoing Chairman, Ms Nonkululeko Nyembezi and other retiring board members, Dr Leila Fourie, Mr Neal Froneman, Ms Shirley Mashaba and Lungisa Fuzile for their enormous contribution to our work and their unwavering commitment to reform.
We welcome new chairman Adrian Gore and new board members, including Daniel Mminele, Kenny Fihla, Valdene Reddy and Phuti Mahanyele-Dabengwa. They join reappointed members Shameel Joosub, Nolitha Fakude, Prof Michael Katz, Vivien McMenamin, Bonga Mokoena and Adrian Enthoven.
Adrian brings both deep business experience and a longstanding commitment to using business as a force for economic transformation. Under his leadership, I am confident BLSA will continue to drive the reform agenda that South Africa urgently needs.
Our priorities remain clear: protect reform momentum where it is gaining traction, confront slippage where it is emerging, and work with government and social partners to strengthen the institutions and capabilities required to implement change at scale. We will continue to bring evidence, member insight, and practical support to the table, with a particular focus on energy security, logistics performance, water security, and municipal functionality, because these are the foundations on which inclusive growth and investment confidence ultimately rest.
As always, I want to acknowledge the significant contribution of our members. Let us continue with confidence and purpose as we work towards making South Africa good for business and business good for South Africa.
Sincerely
Busisiwe Mavuso
CEO, BLSA
Strategy and Reforms Update
Structural Reforms
BLSA has continued to support SOE reform and improve government service delivery in an effort to strengthen South Africa’s fiscal and economic position. This includes providing technical support to Operation Vulindlela (OV) for the expeditious implementation of pro-growth reforms in energy, logistics, water provision and quality, local government, service delivery (including civil service professionalisation, and review of grant funding), urban renewal.
OV appointed the National Business Initiative (NBI) to work as the administrator of the Technical Support Facility, supported and co-governed by BLSA.
OV also contracted Genesis Analytics till the end of the year to perform local government-related work, which is critical to energy and water-related reforms, among other things.
BLSA programmes
BLSA Reform Tracker
On 5 February 2026 and 23 April 2026, BLSA hosted the second and third BLSA Reform Tracker Quarterly Review, respectively.
The second review highlighted continued progress in South Africa’s reform programme, reflected in an overall reform score that improved by 23.7% since tracking commenced in March 2024. At the time of review, 34 deliverables had been completed, 19 were halted, and 192 were in progress. However, the quarter also revealed areas of concern, including regression within the critical electricity sector and a slowdown in governance‑related reforms.
The online event was attended by close to 70 participants, including BLSA members, and was extensively covered across various media platforms.
The third quarterly review, covering January to March 2026, shows South Africa’s overall reforms completion index at 71.75 – up 27% from the March 2024 baseline. Quarterly momentum eased to 0.4 points, with a 4% decline in freight logistics and a second consecutive quarter of no movement in governance reforms, the main concerns. The review was presented at an in-person event hosted in Sandton.
Sovereign Credit Ratings Project hymn sheet
Late last year, BLSA commissioned research to present a balanced perspective on South Africa’s fiscal and growth outlook to the “big 3” credit ratings agencies. BLSA also created a CEO “hymn sheet” to equip business leaders with a common set of empirically grounded arguments, along with position papers for Moody’s and Fitch, all of which were distributed to BLSA, B4SA, and BUSA business leaders.
Presidential SOE Council Support
Following phase 1 of PSEC’s reporting to the President, PSEC facilitated the presentations of the SOE financial analysis reports to the respective Ministers. Given the time lapse of about three years between the drafting and the presentation of these reports, further assessment of the status of SOEs is necessary to assess the work completed and progress based on recommendations from presentations made to PSEC validation workshops.
To assist in the decision-making processes on the future of SOEs, the following insights are needed for reassessment, to compile a detailed report with recommendations:
- Review additional Financial Statements, and any other documents to determine SOEs that should be retained, consolidated, and/or disposed of.
- Establish whether the Entities are sustainable and suitable to be included in HoldCo; and
- Identify the entities in crisis and determine whether they have appropriate turnaround plans and the capabilities to implement them.
Economic Policy
Transformation Fund and B‑BBEE Codes
In February 2026, BLSA was invited by the Minister of Trade, Industry and Competition to nominate a candidate to serve on the Board of the Transformation Fund Special Purpose Vehicle (SPV). In response, BLSA submitted the nomination of Mr Steve Binnie, CEO of Sappi, citing his extensive experience in finance, governance and business leadership. The nomination reflects BLSA’s ongoing participation in the governance processes of the Fund and its commitment to advancing credible and effective transformation initiatives.
BLSA submitted written comments to the dtic on 28 March 2026 on the proposed amendments to the B-BBEE Codes of Good Practice, consolidating member views across mining, automotive, financial services, food and beverage, ICT and professional services.
While BLSA supports the transformation objectives of the amendments, it cautions that several provisions as drafted, would produce outcomes contrary to those objectives. Three concerns are most material:
The proposed scoring structure awards 5 additional scorecard points to companies contributing 3% of Net Profit After Tax (NPAT) to the Transformation Fund over those spending the same amount on direct enterprise and supplier development. This creates a financial incentive to dismantle embedded ESD programmes – and the black-owned SMMEs that depend on them – in favour of a passive contribution to a fund whose governance, beneficiary criteria and accountability mechanisms do not yet exist.
The cumulative procurement sub-targets for 100%-Black-owned enterprises aggregate to approximately 134% of the measurable procurement base – a structural impossibility that will produce inconsistent verification outcomes and expose companies to non-compliance for reasons outside their control.
There is no transition period and no grandfathering of existing multi-year supply contracts. Companies with procurement cycles already locked and B-BBEE level warranties in existing agreements face immediate structural non-compliance through no failure of their transformation commitment.
BLSA’s 30 consolidated recommendations call on the dtic to equalise ESD and the Transformation Fund scorecard points; establish Transformation Fund governance before contributions are solicited; restructure the procurement sub-targets to be mathematically coherent; and implement a minimum three-to-five-year transition period. BLSA remains available to co-design processes the dtic convenes.
African Continental Free Trade Area (AfCFTA) Update
The inaugural meeting of the AfCFTA Committee of Heads of State and Government on Implementation was convened on the margins of the 39th Ordinary Session of the AU Assembly, on 13 February 2026. The meeting adopted the Committee’s terms of reference and reviewed implementation progress.
On tariff negotiations, SACU member states reached an agreement on 19 additional tariff lines for classification under Category B at meetings in Gaborone in January 2026, bringing the total to 324 agreed lines (approximately 4% of tariff lines). Significant differences remain on 441 tariff lines. South Africa has successfully concluded its domestic ratification of the AfCFTA Protocols on Competition Policy and on Women and Youth in Trade. 50 of 55 AU member states have now ratified the Agreement.
Progress on AfCFTA implementation remains a relevant context for BLSA members, particularly as trade negotiations with China proceed, and WTO matters remain unresolved. BLSA will continue to track developments.
WTO 14th Ministerial Conference (MC14)
BLSA submitted detailed comments to BUSA on South Africa’s proposed negotiating positions for the WTO MC14. These inputs were incorporated into the consolidated business constituency submission to the DTIC, forming part of the preparatory process for MC14, which took place in Cameroon from 26-30 March 2026.
MC14 ended in a deadlock on 30 March, without agreement on major issues. The central failure was the e-commerce customs moratorium: The United States pushed for a long-term extension, while Brazil and Turkey blocked it, leading to the moratorium lapsing for the first time since 1998. The broader WTO reform agenda similarly stalled. Draft texts have been carried forward to the next General Council meeting in Geneva, with substantive negotiations not expected to resume meaningfully before 2027. A partial outcome was the endorsement by 66 WTO members of an E-Commerce Agreement outside the formal WTO framework, though this falls well short of the binding multilateral outcome business had sought.
The lapsed moratorium is a live risk for BLSA members. BLSA had specifically recommended that South Africa support a permanent extension on the basis that legal uncertainty in this area directly affects members in financial services, ICT, retail and manufacturing whose cross-border digital operations depend on stable, predictable trade rules. While no government has yet imposed duties on electronic transmissions, the risk is no longer hypothetical. BLSA will monitor developments in Geneva and will assess whether further engagement is required as the situation develops.
SACU Tariff Offer to China – CAEPA Early Harvest Arrangement
In early February, South Africa signed a non-binding Framework Agreement on Shared Economic Development with China (CAEPA). President Xi Jinping subsequently announced on 14 February 2026 that China would grant unilateral duty-free market access to African countries effective 1 May 2026. A proposed Early Harvest Arrangement, under which SACU would offer reciprocal tariff concessions to China, has been under active consultation at NEDLAC, with significant concerns raised by business and labour constituencies.
BLSA solicited inputs from members and consolidated these into the BUSA submission to the dtic, which was submitted on 13 March 2026. Key positions advanced include:
- South Africa’s bilateral trade deficit with China currently stands at approximately US$9.7 billion; the automotive trade balance in 2025 was estimated at 88:1 in favour of China. Tariff liberalisation without reciprocity mechanisms and adequate safeguards risks accelerating deindustrialisation.
- Strategic and sensitive sectors including automotive, plastics, electrical infrastructure, forestry and furniture, and paper and pulp should be explicitly excluded from any tariff offer or Early Harvest arrangement.
- South Africa must retain the policy space to deploy trade remedies, including anti-dumping and safeguard duties, and to increase Most-Favoured-Nation (MFN) tariffs within WTO-bound rates where necessary.
- The governance, legal status and parliamentary approval requirements for both the CAEPA Framework Agreement and the Early Harvest Arrangement require formal clarification from the State Law Advisers before commitments are finalised.
- Any tariff concessions should be conditional upon measurable and enforceable commitments by China to invest in local manufacturing, supply chain localisation and technology transfer.
BLSA will continue to track the Early Harvest negotiation process and will engage through BUSA and NEDLAC channels as the matter develops.
African Growth and Opportunity Act (AGOA)
The United States extended the African Growth and Opportunity Act for a further one-year period to 31 December 2026, following its expiry in September 2025. This extension ensures continuity of preferential, duty-free market access for eligible sub-Saharan African countries, including South Africa, and averts an immediate reversion to higher tariffs on affected exports. In the short term, this provides certainty for existing trade flows and mitigates near-term disruption for exporters reliant on AGOA preferences.
However, uncertainty persists regarding the longer-term future of AGOA. The limited duration of the renewal does not provide clarity beyond 2026 and continues to constrain long-term investment planning. In addition, discussions within the United States on potential reforms to the programme, as well as ongoing eligibility considerations, mean that South Africa’s continued participation cannot be regarded as settled beyond the current extension period.
BLSA will continue to monitor developments closely, working through BUSA and other business channels to track legislative and policy signals from the United States and to assess implications for business
Social Policy
Labour Law Amendment Bill
The Minister of Employment and Labour published the Labour Law Amendment Bill for public comment on 27 February 2026, with submissions due on 30 March 2026. The Bill proposes extensive amendments to the Basic Conditions of Employment Act, the Employment Equity Act, the Labour Relations Act, the National Minimum Wage Act, and the Unemployment Insurance Act. BLSA submitted inputs via BUSA, which coordinated the consolidated business submission.
The submission supported reforms that improve clarity, proportionality and efficiency in the labour market, while raising concerns about proposals that increase rigidity, raise compliance costs or pose constitutional risks – including the doubling of statutory severance pay, the expanded definition of “employee”, on‑call work obligations that may undermine operational flexibility, and the requirement for employers to provide financial security before challenging compliance orders. Business recommended that several provisions be reconsidered or returned to NEDLAC for further engagement.
Review of 1998 White Paper on Local Government
The White Paper on Local Government has progressed into the consultation and Cabinet consideration phase. The current draft (13 February 2026) has not yet incorporated stakeholder inputs, including those from organised business; however, all inputs have been formally captured and will be integrated following Cabinet deliberations scheduled for late April 2026.
Gazetting for public comment is expected in May 2026, with finalisation targeted for June 2026. This presents a critical window for BLSA to shape the final policy – particularly regarding structured and scalable private sector participation.
Energy and Environment
Eskom unbundling
In December 2025, the Department of Electricity and Energy (DEE) communicated a revised approach to Eskom unbundling, under which electricity transmission assets would remain within Eskom, housed in the National Transmission Company of South Africa, while a separate Transmission System Operator would perform system and market operation functions. The Department indicated that the approach was aligned with the Electricity Regulation Amendment Act, which it interpreted as requiring functional separation rather than immediate transfer of transmission assets, representing a shift from the previously articulated asset-independent transmission model.
During a January 2026 engagement between BLSA, Business Unity South Africa and the DEE, government described the revised configuration as transitional, while acknowledging that it could become the final position. The Department cited creditor considerations, Eskom’s balance-sheet position and potential sovereign-risk implications as key constraints. Business raised concerns regarding ongoing conflicts of interest, implications for investor confidence and the impact of the revised approach on the ability to finance and accelerate grid expansion.
President Ramaphosa has resolved the long‑standing uncertainty over Eskom’s unbundling by endorsing Operation Vulindlela (OV) and National Treasury’s model of an independent Transmission System Operator (TSO) with transmission asset ownership.
A NECOM task team has been established with a three‑month deadline to deliver an implementation plan. However, Eskom is publicly pushing back, signalling concerns about long‑term sustainability. This tension means implementation risks remain, and BLSA will continue tracking the process.
Eskom Electricity Pricing Policy
The Minister of Electricity and Energy has announced a review of the Electricity Pricing Policy (EPP), with the gazette of the new draft expected by mid-May 2026. The revised policy is intended to move away from unsustainable high-percentage tariff increases and to make electricity more affordable for households and the economy. BLSA will be closely monitoring this as the public comment process opens.
Electricity Trading Rules and Licensing Litigation
NERSA held public hearings on the draft Electricity Trading Rules in late February. Eskom raised significant legal and technical objections and signalled the possibility of judicial review, which posed a risk of derailing or delaying the rule‑making process.
However, momentum has since shifted positively. In mid‑March, Eskom, NERSA, and five licensed traders reached an agreement to suspend Eskom’s High Court challenge to the 2024 trading licences. This pause allows the regulatory work on the Trading Rules to proceed without parallel litigation and reduces the immediate risk of institutional conflict. While Eskom retains the right to revive the challenge, the suspension represents an important step towards regulatory certainty – a central theme in BLSA’s energy‑market advocacy.
Water Reforms Update
The National Water Amendment Bill was tabled in the National Assembly in January 2026 by the Minister of Water and Sanitation for processing by the Portfolio Committee. The tabling of the Bill, approved by Cabinet in 2025, represents an important step in advancing long-standing reforms. It is aligned with interventions under Operation Vulindlela, which has identified water security, allocation reform and institutional strengthening as critical enablers of economic growth.
Key provisions of the Bill include empowering the Minister to reallocate water across sectors, regulating the transfer of water-use authorisations, and strengthening the protection of strategic water source areas by restricting activities in and around such areas.
In parallel, the BLSA Reform Tracker highlights that implementation capacity remains a key risk to water reform outcomes under the Operation Vulindlela workstream. Appointments to the National Water Resources Infrastructure Agency (NWRIA) Board, initially anticipated for late 2025, was now expected in the first quarter of 2026, with further steps required to operationalise the Agency. BLSA will continue to monitor progress across the legislative and institutional reform tracks, engaging through appropriate channels as implementation milestones and timelines continue to evolve.
Climate - Nationally Determined Contributions
South Africa submitted its second nationally determined contribution to the UNFCCC on 24 October 2025. The submission, listed as active in the NDC registry, keeps the 2026-2030 emissions target range and adds a new 2031-2035 range to extend ambition through 2035.
In preparation for this submission, the Presidential Climate Commission (PCC) published draft recommendations on adaptation and mitigation targets and conducted extensive stakeholder engagements before finalising its recommendations. The draft NDC includes South Africa’s first comprehensive adaptation communication and maintains the country’s net-zero target by 2050. It seeks to access $8bn a year in climate finance by 2030.
PR & Communication
Council Meetings
BLSA remains committed to delivering events that offer members privileged access to insights and perspectives, as well as the opportunity to engage on issues that may influence or impact their organisations.
In-person BLSA Council Meeting with Rudi Dicks
On 24 February 2026, BLSA hosted a well-attended Council Meeting under the theme “Municipal reforms and the critical role they play in unlocking economic growth”. Rudi Dicks, Head of Operation Vulindlela, delivered a candid overview of the current state of municipal reforms, highlighting that unlocking these reforms is critical to reigniting economic growth and ensuring long-term stability. The ultimate message focused on the goal: – to strengthen service delivery, improve operational efficiency, and ensure that both businesses and communities receive consistent, dependable services.
Online BLSA Council Meeting with Joel Netshitenzhe
On 30 March 2026, Mr. Joel Netshitenzhe, Executive Director at MISTRA, delivered a thoughtful presentation at the BLSA Council meeting titled “Turning the Corner… Into Global Headwinds of Anarchy?” Members received valuable perspectives on major global trends, South Africa’s economic outlook, and the evolving domestic macro‑social environment. The discussion offered strategic insight into the risks and opportunities shaping the country’s medium‑term trajectory.
In-person BLSA Council Meeting with Minister Patricia de Lille
BLSA, in partnership with Wesgro, hosted a Council Meeting for their respective members on 17 April at Amazon’s offices in Cape Town. Business leaders came out in numbers to engage on how tourism serves as a driver of inclusive economic growth.
The event took place against the backdrop of a record-breaking 2025 tourism performance, with 10.5 million international tourist arrivals, a 17.7% increase on 2024 and well above pre-pandemic levels.
Western Cape Premier Alan Winde addressed members on “Unlocking tourism growth and jobs through partnership and collaboration”, while Tourism Minister Patricia de Lille delivered a keynote address titled “Unlocking South Africa’s Global Competitiveness in Tourism”. Both the Minister and the Premier made it clear that if South Africa is tmeaningfully address persistently high unemployment, tourism is central to the solution. With nearly one million direct jobs already supported by the sector and plans to revise the previous target of one million jobs by 2030, tourism is uniquely positioned to absorb young, semi-skilled, and previously excluded workers at scale.
Unlocking this full potential will require strong alignment between policy and execution. This includes increased infrastructure investment, accelerated electronic visa processing, improved air access, and sustained public-private collaboration to remove red tape and unlock growth.
Tourism is not just a growth story; it is a jobs story, and one that South Africa cannot afford to ignore.
In-person BLSA Council Meeting with Minister Velenkosini Hlabisa
Reliable municipal service delivery is fundamental, not only for businesses to operate, but for employees and customers to participate fully in the economy.
Against this backdrop, BLSA invited Minister of Cooperative Governance and Traditional Affairs, Velenkosini Hlabisa, to address our Council on progress with local government reform. At an event held on 23 April 2026, the Minister outlined plans for the White Paper on Local Government, which proposes the professionalisation of local government, the introduction of a corruption register, and the amalgamation of dysfunctional municipalities – critical reforms that should restore service delivery and economic confidence. Gazetting for public comment is expected in May 2026, with finalisation targeted for June 2026.
BLSA as the Voice of Business
Ms Mavuso continued to be a sought-after commentator across media and other public platforms. Her commentary underscored pragmatic solutions, accountability, and partnership, acknowledging progress in key reforms. Specific emphasis was placed on the dire implications of corruption, particularly in the Criminal Justice System, highlighting the consequences of the municipal crisis and failure in service delivery. An urgent call for more timely government intervention to improve the plight of sectors impacted by high input costs and cheap imports was also emphasised.
BLSA successfully shaped key economic and policy conversations through sustained commentary, high-impact interviews, and opinion content. Media reliance on BLSA perspectives confirmed its standing as a trusted agenda-setter within corporate South Africa.
A total of 21 broadcast interviews with a cross-section of South Africa’s media houses were conducted during February and March, and Ms Mavuso had 12 speaking engagements across the country, addressing both member and non-member organisations.
Conclusion
As we reflect on the start of 2025, it’s clear that we kicked off the year on a high note. The positive sentiment at the World Economic Forum regarding Team South Africa have set a promising tone for the months ahead. The successful launch of the B20 has further solidified our position on the global stage, showcasing our commitment to economic growth and collaboration. President Ramaphosa’s State of the Nation Address was well-received, highlighting key achievements and setting a clear vision for the future.
While the cancellation of the budget speech was disappointing, it also spoke volumes about the critical voices and views of the GNU parties. The parliamentary processes are becoming more and more transparent because of the coalition government. We eagerly await the outcome of the approved Budget 2.0 and the extent to which these will enable economic growth and the creation of jobs. Here’s to a year of continued success and unity!