The Minister of Finance, Enoch Godongwana, said phase 1 of the programme provided tangible evidence that structural reforms can reduce economic bottlenecks.
The Steel Federation is hopeful that industries will benefit from phase 2 of Operation Vulindlela, as they have already seen the success of phase 1.
Operation Vulindlela is a programme by the government aimed at boosting the country’s economy while creating jobs.
The Minister of Finance, Enoch Godongwana, said phase 1 of the programme provided tangible evidence that structural reforms can reduce economic bottlenecks.
He was outlining his Medium-Term Budget Policy Statement on Wednesday.
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Operation Vulindlela
Phase 1 of Operation Vulindlela made achievements such as the introduction of an eVisa system to travellers from 34 countries and a reduction in the waiting period for obtaining a water use licence, from almost a year to 90 days, amongst others.
The Steel and Engineering Industries Federation of Southern Africa (Seifsa) said the structural reforms that have already been undertaken through Operation Vulindlela are starting to yield noteworthy and welcomed benefits on the economy.
Phase 2 of Operation Vulindlela
The Federation added it is important for the second phase of the programme to focus on network industries. “The deterioration of the quality of infrastructure across these industries has been the albatross on economic growth and on the metals and engineering sector.”
The Steel Federation has consistently shone a spotlight on how industrialisation projects can be driven through the repair and rebuild of existing infrastructure.
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Focus on infrastructure
Seifsa have also viewed the focus on infrastructure development as a need for the economy’s growth.
“Infrastructure development across all its permutations is an important source of demand for the metals and engineering sector.”
The Federation has also shed light on the commitment by Treasury to amend the public-private partnerships regulation by the end of November this year for implementation in 2025/26. They view this commitment as a milestone in the right direction.
“The macro-economic environment at a global level is gaining momentum and has turned supportive; it is therefore incumbent that the country takes full advantage of the benefits that this supportive environment will yield.”
“Equally, domestically, the tide is turning positive, and keeping this momentum going will be critical to driving a major industrialisation agenda.”
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