The second BLSA Reform Tracker Quarterly Review reveals that South Africa’s reform programme continues to advance, with the overall reform score rising 23.7% since tracking began in March 2024. However, the latest quarter shows concerning backwards movement in the critical electricity sector, alongside slower momentum across governance reforms.
The Tracker monitors 245 reform deliverables across criminal justice, governance and economic categories. Of these, 34 have been completed, 19 have been halted, and 192 remain in progress.
“The broad trajectory remains positive – South Africa’s reform agenda is delivering measurable results,” said Busisiwe Mavuso, BLSA CEO. “However, the reversal in electricity sector reforms is deeply concerning. The approved unbundling strategy represents a step backwards from the independent transmission system operator model that Operation Vulindlela, Necom and National Treasury have been working towards.”
- Electricity Reforms Move Backwards
The electricity sector’s score has declined over two consecutive periods, dropping from 73.2 points at end-May 2025 to 71.4 at end-December 2025. In December 2025, the Department of Electricity and Energy approved Eskom’s revised unbundling strategy, which keeps transmission assets inside NTCSA (still under Eskom Holdings) and creates a separate Transmission System Operator without asset ownership.
This deviates significantly from the work to establish an independent TSO that supports a competitive electricity market. The new structure means the TSO will be unable to raise capital on its own balance sheet, likely prolonging grid constraints and deterring new renewables rollout.
Additional electricity sector challenges include:
• The Electricity Regulation Act came into effect in January 2025 but with the reticulation section excluded due to municipal opposition
• The national wheeling framework was approved by Nersa but Eskom lodged a legal challenge, limiting licensed traders’ access
- To read the full media statement, click here
- Click here to view the second BLSA Reform Tracker Quarterly Review.
- Click here to view the BLSA Reform Tracker Presentation