Budget Speech 2025 > Fostering Faster Inclusive Growth

Our strategy to achieve faster growth remains anchored on the following four pillars:

•	Maintaining macroeconomic stability,

•	Implementing structural reforms,

•	Improving state capability, and

•	Accelerating infrastructure investment.

Maintaining macroeconomic stability, inclusive of prudent fiscal policy, promotes stable prices, lowers interest rates and enhances the country’s resilience to external shocks.

This creates a conducive environment for investment.

Implementing structural reforms removes impediments to growth and creates a solid foundation for a high and sustained economic growth.

Madam Speaker, it was out of the realisation that economic growth and fiscal stability are mutually reinforcing, that Operation Vulindlela was formed as a joint initiative between the Treasury and the Presidency, to fast track the implementation of structural reforms.

Its objectives were to:

1.	Stabilise the supply of electricity;

2.	Create a competitive and efficient freight logistics system;

3.	Reduce the cost and improve the quality of digital communication;

4.	Ensure a stable, quality supply of water; and

5.	Reform the visa regime to facilitate skilled immigration and support tourism.

Since its establishment in 2020, OV has made real progress in achieving these objectives.

For example:

•	The energy reforms have created a 22 500 mega-watt pipeline of projects. More than 10 000 mega-watts are formally registered with the NERSA, which is one of the last steps in the regulatory process. These projects will contribute to reducing power cuts.

•	The Freight Logistics Roadmap was approved. The roadmap allows private sector participation and gives third-party access to any operator without discrimination in accordance with the network statement.

•	The cost of a 1.5GB data bundle has declined by 51 per cent, allowing individuals and small businesses to access more affordable data.

•	The water-use licenses backlog has been cleared, unlocking billions in investment and freeing projects that had stalled because of the backlog.

•	The water quality regulatory system was reinstated for the first time since 2014. This is the Green Drop, Blue Drop and No Drop certification that enables effective intervention in supporting failing municipalities to provide clean water to citizens.

•	e-Visas for travellers from 34 countries have been introduced to significantly boost tourism. The trusted employer scheme has been established to fast-track visa process for major investors.

•	These achievements have eased economic bottlenecks. And building on the successes, Phase 2 of OV will focus on:

•	Following through on existing reforms in energy, water, logistics and visa systems;

•	Strengthening local government and improving the delivery of basic services;

•	Harnessing digital public infrastructure as a driver of growth and inclusion; and

•	Creating efficient, productive and inclusive cities.