The third BLSA Reform Tracker 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 has 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 Tracker, developed and managed by research consultancy Krutham for Business Leadership South Africa (BLSA), monitors 245 reform deliverables across economic, criminal justice and governance categories.
“South Africa’s reform programme has now been tracked for eight quarters and the overall trajectory remains positive,” says BLSA CEO Busisiwe Mavuso.
Referring to the setback in freight logistics, Mavuso notes that the framework architecture, at this stage of Transnet’s unbundling processes, leaves the SOE as both referee and player at the very time the industry is being opened up to private sector participation. Similar issues are affecting energy sector reforms.
“This framework explicitly incentivises Eskom and Transnet to put their interests first. As such, we have a situation where a state entity might push back, quite rationally from their perspective, against certain reforms.”
Addressing these structural tensions remains a priority – but Mavuso says the reform agenda must also look further ahead. “It is equally important to ask what comes next – not just addressing new layers within existing reform areas, but identifying entirely new areas that require fundamental reform to secure the country’s long-term future. BLSA is working on that agenda.”
Freight logistics
The freight logistics completion index fell 4% to 69.16, the sharpest single-category decline of the quarter, reflecting delays in regulation, market reform and private sector participation in ports and rail. Network Statement Volume 4 – deemed largely unbankable by operators and financiers – remains unpublished past its February 2026 deadline.
On the positive side, the Economic Regulation of Transport Amendment Act was signed in March, seven private train operating companies are in advanced negotiations with the Transnet Rail Infrastructure Manager, and port concession activity has increased, with the Durban Gateway Terminal operational and RFQs issued for Richards Bay and Ngqura.
Energy
The electricity index improved from 67.63 to 69.05 after President Cyril Ramaphosa confirmed in his February state of the nation address that the Transmission System Operator will be independent and own transmission assets, overruling an agreement by Eskom and the Department of Electricity and Energy that it would retain the assets in Eskom. A Treasury-led task team is scheduled to report to the president on this issue in May.
The South African Wholesale Electricity Market (Sawem) internal market launch is expected in June 2026, with full market functionality only by 2028. The Gas Master Plan has been further delayed after Nedlac consultations did not conclude as planned.
Criminal justice
Criminal justice rose from 84.05 to 85.77, driven by a material improvement in Financial Intelligence Centre capacity – its index score rose from 50 to 75. Bank compliance with anti-money laundering and counter-terrorism financing obligations has improved, with comprehensive three-year risk and compliance reporting requirements confirmed.
Governance
Governance reforms were unchanged at 54.38 for the quarter, the lowest-scoring and slowest-moving category. However, immediately after the review period on 1 April, the Public Service Amendment Act and Public Administration Management Amendment Act were enacted. These limit ministers’ and premiers’ power to appoint staff below head of department level, a direct response to the Zondo Commission recommendations. A structural problem remains: the president and premiers retain the power to appoint heads of departments without independent oversight.
Financial sector
Financial sector reforms recorded the strongest gains with a flurry of post-Budget activity, rising from 85.05 to 87.96. Most major reforms are now legislated and operational: bank deposit insurance (CODI) is live, the two-pot retirement system is in force, the ZARONIA transition is on a published timeline, and PayShap is live. The National Financial Ombud Scheme consolidation remains in advanced design but has not yet launched.
Water and housing
The NWRIA Amendment Bill awaits presidential signature, which is expected in Q2 2026. Green Drop certifications for wastewater systems fell from 22 to 14 since 2022; Blue Drop improved marginally. On housing, stalled or blocked projects nationally stand at 212, valued at approximately R37bn. The title deeds backlog remains unquantified.
Outlook
Key Q2 2026 milestones: TSO task team report to the president (May); Transport Economic Council commencement; NWRIA bill signature and board appointments; National Water Action Plan; Sawem internal launch (June).
Click here to view the BLSA Reform Tracker Quarterly Review
Click here to view the Reform Tracker Presentation