South Africa's ambitious programme of structural reforms is delivering tangible results, with the liberalisation of the energy sector and the resolution of Eskom's crippling debt burden enabling renewed investment in power generation infrastructure, Deputy Finance Minister Dr David Masondo has declared.
Speaking at the launch of a major economic research initiative on Tuesday, Masondo pointed to the country's freedom from load shedding as evidence that the reform agenda is working, while cautioning that further action is needed to shield the economy from global turbulence.
"The structural reforms are paying off. We have liberalised the energy market, and we no longer depend solely on Eskom for our electricity supply."
The Deputy Minister explained that the settlement of Eskom's R420 billion debt obligation has freed the power utility to channel resources into repairing and maintaining its generation fleet. He stressed that continued economic reform, including expanded investment in renewable energy and gas, would be vital to diversifying the country's energy mix and guarding against future supply disruptions.
New research programme targets inclusive growth
Masondo's remarks came during the unveiling of Phase III of the Towards Inclusive Economic Development (SA-TIED) programme, a collaborative initiative that pairs government policymakers with researchers to address knowledge gaps standing in the way of inclusive growth and economic transformation. The latest phase, spanning 2026 to 2029, will build on earlier achievements while introducing a fresh emphasis on public expenditure efficiency.
"We are launching Phase III at a critical moment. Globally, economic conditions remain uncertain. In this environment, evidence becomes even more important. It enables better prioritisation. It supports more efficient allocation of resources. And it ensures that reforms deliver measurable outcomes."
The programme will continue its work on public revenue mobilisation, poverty and inequality, labour markets, macro-fiscal analysis, and climate-related challenges affecting food, energy and water systems. However, the addition of a public spending focus reflects a recognition that, as fiscal room narrows, the quality of expenditure matters as much as its quantity.
Three pillars to drive reform capacity
Phase III is structured around three central priorities: deepening evidence-based research and forging stronger connections between academic findings and policy implementation; expanding access to administrative datasets and building durable data infrastructure; and enhancing state capability through targeted training, skills development and closer integration of research within government institutions.
Masondo underscored that lasting reform hinges not merely on sound ideas but on the institutional capacity to put them into practice. He described the SA-TIED programme as precisely the kind of innovation governments require in an era defined by uncertainty and rapid change.
"This programme is not only about producing research, but also about embedding evidence within the processes of government. It is built on long-term collaboration between policymakers and researchers, grounded in trust and shared purpose."
The Deputy Minister reaffirmed the National Treasury's commitment to sustaining partnerships across government, academia and development organisations, ensuring that robust evidence continues to underpin South Africa's reform trajectory. He highlighted the contribution of the World Institute for Development Economics Research of the United Nations University (UNU-WIDER), whose global expertise, research networks and methodological rigour have strengthened the programme's output and relevance. Through Operation Vulindlela, the government continues to advance structural changes aimed at unlocking growth, bolstering infrastructure and improving the state's ability to deliver for its citizens.
South Africa's energy sector transformation directly affects millions of households and businesses that endured years of devastating load shedding, which cost the economy billions in lost productivity. The resolution of Eskom's R420 billion debt and entry of independent power producers signal a more reliable electricity supply, potentially attracting fresh domestic and foreign investment. However, global economic uncertainty and the long timeline needed for renewable energy expansion mean sustained reform momentum will be critical to ensuring lasting energy security.
