Each quarter, FSA's Executive Director, Michael Peter, circulates several short briefings via WhatsApp, updating members on important economic, political and social issues -- both domestic and international -- that could impact the Sector.
DA CHALLENGES THE EMPLOYMENT EQUITY AMENDMENT ACT - 5 MAY
As reported by FSA in February, the Department of Labour did not take heed of FSA's, nor any other Sector's, submissions regarding the revised Employment Equity Amendment Act, as these inputs were not reflected in the final version of the Act. FSA also informed members that it believed the amended Act would not withstand constitutional scrutiny. Members have since been provided with copies of the 'founding affidavit' and 'heads of argument' submitted by the DA in their High Court challenge, which asserts that the Act is unconstitutional. FSA will continue to keep members updated on the progress of this matter.
OPERATION VULINDLELA PHASE II - 7 MAY
The following is an excerpt from Dr Duncan Pieterse, Director-General of the National Treasury, at the launch of Operation Vulindlela (OV) Phase II:
"An important feature of why OV works is because it is a true partnership between the Presidency and the National Treasury. Both departments bring critical levers to the table. The Presidency provides the political authority and convening power to cut across silos and resolve blockages at the highest level, while the Treasury brings the technical depth, fiscal insight and reform experience needed to shape credible policy solutions. Together, this partnership anchors OV with both the strategic oversight and technocratic capacity required to drive complex structural reforms. It is precisely this combination -- of political will and economic policy coherence -- that has enabled OV to sustain its momentum and credibility over time.
South Africa's overall growth trajectory remains constrained, but the reforms implemented during Phase I have laid the groundwork for stronger performance over the medium term. It has consistently been stated that South Africa's growth challenges are structural, not cyclical, and that OV reforms target these underlying structural constraints to raise the country's potential growth rate. Consequently, the economic impact of these reforms will become visible gradually, rather than immediately.
Phase II's success will depend not only on what is done but on how it is done. The process will build on the lessons of Phase I, embedding clear theories of change for each reform area, setting measurable targets and ensuring that coordination mechanisms -- such as sectoral task teams -- are effective. Importantly, access to technical expertise will be expanded within and beyond government, and a more dynamic approach to managing reform execution risk will be adopted.
The challenge now lies in execution at scale, which will require mobilising the full capacity of the state, engaging the private sector, and creating conditions for markets to operate more effectively. This involves creating an enabling environment for investment in key sectors of the economy.
Relevant departments will play a crucial role as implementers and problem-solvers. From the Treasury's side, fiscal instruments and guarantee frameworks are being enhanced to enable blended finance, particularly in sectors such as transmission, freight rail and water. Furthermore, the upcoming national budget will align with these priorities.
Ultimately, OV is about building and reinforcing credibility -- credibility that government can deliver on its reform agenda, that institutions can collaborate effectively, and that reform commitments will translate into real progress -- resulting in jobs, infrastructure and a more resilient economy."
FSA has been privileged to contribute to many of the structural reforms driven through the OV process. The organisation looks forward to strengthening its partnership with government to advance further structural and operational reforms, particularly now that the legislative environment has improved significantly under the Government of National Unity.
RESPITE FOR ROADS AND RAIL - 12 MAY
As previously reported by FSA Operations Director, Francois Oberholzer, in February, Trade, Industry and Competition Minister Parks Tau has relaxed competition regulations for South Africa's port and rail network sector. This forms part of broader government efforts to address the challenges of underfunded and underperforming logistics infrastructure. These measures are designed to reduce costs and resolve operational inefficiencies in ports and rail networks. The full gazette on these measures is available for review.
FSA DELIVERS KEYNOTE ADDRESS AT THE AGRIMPUMALANGA CONGRESS - 9 JUNE
FSA's Executive Director was honoured to deliver the keynote address at the AgriMpumalanga Congress in White River. The address focused on the improvements in the political, economic, legislative and administrative environment in which the Sector operates -- an area where effective industry associations such as FSA, AgriSA and AgriMpumalanga play an essential role. The keynote also provided members with further updates on structural reforms and positive developments in both the Sector and the country more broadly, many of which were also covered in Rudi Dicks' keynote address. This address is available to members on the FSA membersonly page.
WORLD BANK INFRASTRUCTURE LOAN - 9 JUNE
In a further boost to infrastructure reforms, the World Bank has approved a US$1.5 billion loan to South Africa. The loan will support the recapitalisation of critical infrastructure, particularly the country's rail, ports and energy grid -- positive news for both the Sector and the country at large.
FSA INVITED TO NATIONAL PLANNING COMMISSION DELIBERATIONS - 11 JUNE
The Presidency has once again invited FSA to participate in highlevel policy discussions, this time through the National Planning Commission deliberations in Kimberley. These discussions will inform an updated National Development Plan and serve as the foundation for the forthcoming National Dialogue, in which FSA will also be participating with pride.
TRANSNET TO RECEIVE ADDITIONAL GOVERNMENT GUARANTEES - 25 JULY
In a joint statement by the Department of Transport and the Ministry of Finance, it was announced that a R51 billion guarantee facility has been approved for Transnet. Given Transnet's planned debt redemptions of R99.6 billion over its five-year Corporate Plan period, the government has initiated a process to allocate additional guarantees to cover these obligations fully. The outcome of this process will be announced by 25 July 2025.
This government support will enable Transnet to:
The government remains committed to collaborating with Transnet throughout this period to:
SOUTH AFRICA MEETS FINANCIAL ACTION TASK FORCE (FATF) COMMITMENTS - 13 JUNE
The National Treasury issued a media statement announcing that the Financial Action Task Force (FATF), at its recent meeting in France, determined that South Africa had fulfilled all 22 commitments required for the removal of its grey-listed status. Although final confirmation depends on an onsite FATF review, this development represents a significant milestone. It is expected to improve the country's credit rating and reduce transaction costs, among other benefits.