By South Africa’s structural reform agenda has bounced back strongly, with the latest Business Leadership South Africa (BLSA) Reform Tracker recording its highest completion index since monitoring began in March 2024.
Covering the third quarter from July to September 2026, the milestone review shows the completion index climbing to 72.5, up from 71.3 in the previous quarter. This puts the overall reform score 28.4% above its initial baseline, signalling a renewed positive trajectory after a sluggish preceding period.
Quarter-on-quarter momentum swung back into positive territory at +1.7%, marking the strongest reading since late 2025.
“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.”
Energy and Freight Lead the Charge
The broader economic recovery was heavily anchored by advancements in vital network sectors, particularly electricity and freight logistics.
The electricity reform index rose from 67.8 to 69.4. Key catalysts included the scaling up of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) into a mega bid window. Furthermore, the National Transmission Company South Africa (NTCSA) successfully cleared its R2 billion backlog in curtailment payments to independent power producers on August 31, lifting the curtailment protocol capacity from 75 to 81.25.
President Cyril Ramaphosa also endorsed the Eskom restructuring task team’s phase 1 report regarding the legal separation of transmission, pushing full unbundling scores higher.
However, minor setbacks persisted in the energy space. Virtual wheeling protocols dipped for a second consecutive quarter to 76.25 due to delayed trading rules, while requests for proposals for the Independent Transmission Project have slipped from late 2026 to the second quarter of 2027.
In freight logistics, the index jumped from 69.6 to 72.5. A major highlight was the Department of Transport’s gazetting of Transnet’s final Network Statement Version 4 and Rail Access Agreement on September 18, surging that deliverable from 62.5 to 87.5.
This critical shift allows cargo owners—not just licensed train operators—to secure rail capacity directly. Port concessioning and Transnet National Ports Authority corporatisation also gained ground following Cabinet support.
Financial Sector Stability and Governance Mixed Bag
Financial sector reforms continued their steady climb, moving from 88.1 to 89.5, underpinned by progress on the draft Crypto Assets Manual, JIBAR conversion milestones, and a new Financial Sector Conduct Authority (FSCA) standard.
Conversely, governance experienced its first-ever decline, sliding from 55.0 to 54.6. This contraction followed a Constitutional Court ruling that declared the Public Procurement Act unconstitutional and invalid due to insufficient public participation at the National Council of Provinces stage, forcing National Treasury back to the drawing board.
On a brighter governance note, the newly signed Public Service Commission Act extends crucial oversight into local government, boosting accountability frameworks.
Grey List Warnings Loom Large
Despite the broader economic optimism, BLSA sounded a stark warning regarding South Africa’s standing with the Financial Action Task Force (FATF).
While the country successfully exited the grey list in October 2025, it is now undergoing a crucial follow-up mutual evaluation running through October 2027. Experts like Ismail Momoniat have flagged a significant risk of a return to the grey list if law enforcement fails to maintain a sustained, aggressive increase in investigating and prosecuting money laundering.
Notably, the specific corruption reform index remained stagnant at 51.2, underscoring ongoing vulnerabilities in tackling organized crime and recovering criminal assets.
Looking Ahead
As South Africa battles persistent structural hurdles—chiefly high unemployment—BLSA emphasizes that maintaining reform momentum is non-negotiable. Ensuring that energy, logistics, and municipal service delivery function efficiently remains the definitive prerequisite to unlocking long-term, inclusive economic growth.
