JOHANNESBURG – South Africa's overall Reform Completion Index fell to 71.5 from 71.7 in the previous quarter, according to the fourth Business Leadership South Africa (BLSA) Reform Tracker Quarterly Review covering April to June 2026.
However, the index is still 26% above the March 2024 baseline.
BLSA announced on Thursday, July 23, 2026, “Since tracking began, quarter-over-quarter momentum has turned negative, with declines narrowly outpacing gains for the first time in tracker history.”
The BLSA Reform Tracker is developed and managed by research consultancy Krutham for Business Leadership South Africa (BLSA) and monitors 247 reform deliverables across economic, criminal justice and governance categories.
Of these, 172 are comparable to the previous quarter. Of these, 33 had their scores changed, 13 were improved, and 20 were rejected.
BLSA CEO Busisiwe Mavuso said: “This quarter is the first time that reforms have stalled more than they have made progress.”
Mr Mavuso referred to the setbacks in the electricity reform, noting that apart from those related to the separation of Eskom, a number of issues have been brought to light through the tracker.
electricity
Despite Eskom itself remaining stable, the electricity reform sector fell from 69.1 to 67.5 (-2.2%) this quarter. Utilities are currently predicting no load shedding this winter and a surplus of more than 5GW due to improved power plant reliability and reduced demand.
However, aggressive reductions in renewable IPPs continue, with reduction compensation payments reaching R2 billion and some IPPs facing revenue shortfalls of around 9%.
The virtual power transmission protocol fell 18.75 points (100 to 81.25) points, one of the sharpest falls in the quarter, after the finalization of trading rules missed an April deadline, leaving private power traders on the sidelines.
The city's debt to Eskom exceeded R114 billion, distribution agency contracts were provided as stopgap measures rather than structural improvements, and transmission infrastructure deployment fell short of its 2025/26 target (270.8 km compared to the target of 423 km).
Both the South African Wholesale Electricity Market (Sawem) and the Independent Transmission System Operator (ITSO) face tight and at-risk timelines for the third quarter.
cargo logistics
Freight logistics improved slightly, down 0.5% to 68.8. However, Volume 4 of the Network Statement was published on July 3 and is therefore excluded from this quarter's score.
Volume 4, among other things, applies formal access seeker status to shippers as well as licensed operators for the first time.
Transnet’s Rail Infrastructure Manager (TRIM) has entered into rail access agreements with all 11 newly qualified private rail operators, moving the network from one operator to 12 and expecting an additional 24 million tonnes of freight volume per year.
The Durban Container Terminal Pier 2 concession has also reached financial close.
However, broader bankability concerns lowered the overall score in the reform area. Although the National Railways Bill was not submitted during the quarter and rolling stock constraints remain a concern, the release of the RFP for rolling stock leasing companies (LeaseCo) on June 22 is a positive step.
The tracker world also grew this quarter. The Synthetic Financial Center, approved in the February budget to allow investment institutions to manage foreign exchange funds from within South Africa's borders, joined the tracker with an opening score of 31.25.
New transport reform areas have also been added to the tracker through the Road Accident Fund reform.
On the positive side, the Electronic Travel Authorization System drove visa reform from 83.4 to 86.1 (+3.3%), marking the largest increase in any single outcome for the quarter (65.8 to 90.75).
Other Infrastructure improved from 75.0 to 80.0 (+6.7%) due to progress in digitalization of Deeds Office.
governance
The only pillar that made progress this quarter was Governance, rising from 54.4 to 55.1.
The Civil Service Reform Act, which was enacted on April 1, 2026 in parallel with the Administrative Management Reform Act, transfers administrative authority from the executive branch to department heads, including the authority to appoint and dismiss departmental employees.
Outcome score increased from 62.5 to 75 (+20%). This is the single largest increase this quarter on the governance front.
The Department of Cooperative Governance and Traditional Affairs (COGTA) also published a revised draft of the Local Government White Paper in the Official Gazette for public comment in May, marking the first major rewrite since 1998.
The final policy is expected to be announced in July or August.
criminal justice
Criminal justice remained roughly flat, but fell from 84.8 to 84.2 as the post-FATF increase took hold.
The Fugitive Offenders Act, which was introduced in Parliament on May 19 to replace the outdated 1962 Fugitive Offenders Act, has been raised from 62.5 to 65.
The draft Protected Disclosure Bill is not yet open for comment, but no score changes have yet been recorded while the Department considers the submissions before they are tabled.
conclusion
BLSA is deeply concerned that reforms in the energy, transport and logistics sectors, which are critical to building an efficient economy, are hitting roadblocks.
Although Transnet has made some impressive reforms, it is still designing and implementing the very processes intended to open up the network to competition, with operators adhering to commercial terms for tariffs set by Transnet itself before the Transport Economic Regulator (TER) became operational.
There have been worrying delays in establishing independent transmission system operators, as without them a competitive market would not be possible.
Equally concerning is the increase in debt to IPPs to cover cuts.
BLSA strongly believes in the successful implementation of reforms. Efficiently functioning energy markets, transport and logistics markets, and serviceable water systems and local governments provide a strong foundation for economies to grow at meaningful rates.
This will put the country in a better position to address many urgent needs, particularly high unemployment.
Details on these and other reforms are published in the BLSA Reform Tracker Quarterly Review, April-June 2026, available on BLSA Reform Tracker.
