SA economic reform takes negative turn, says BLSA

South Africa's economic reform drive has hit a speed bump. Business Leadership South Africa (BLSA) said reform momentum has turned negative for the first time since it began tracking government progress in 2024. While gains have been made in areas like visa reform and governance, delays in electricity and freight logistics are threatening to slow investment and economic growth. The latest BLSA Reform Tracker shows the country's overall reform completion index slipped to 71.3 in the second quarter of 2026, down from 71.6 in the previous quarter. Although the index remains well above where it started in 2024, BLSA said the decline signals that implementation is beginning to stall. Economic reforms, which account for three-quarters of the overall score, recorded the biggest setback. BLSA said the electricity sector remains one of the biggest concerns. Freight logistics reforms also delivered mixed results. There were, however, some bright spots. The Electronic Travel Authorisation system posted the strongest improvement during the quarter, while governance reforms advanced after the implementation of the Public Service Amendment Act and progress on reforms to local government. CEO Busisiwe Mavuso said meaningful progress in designing reforms but warns that delays by State-owned entities risk slowing the country's efforts to attract investment, improve competitiveness and lift economic growth.