As Operation Vulindlela enters its second phase, the government will focus on improving the performance of local municipalities to address critical issues in electricity, water, and other basic services.

“Without these services, businesses cannot function, and investors cannot invest,” Deputy Minister of Finance David Masondo stated on Tuesday.

Speaking at the Old Mutual Thought Leaders Forum, Masondo emphasized the need to stabilize local government, including a review of its funding model to ensure financial and operational sustainability.

Key goals include appointing capable and qualified personnel to municipal administrations and addressing corruption and political interference in these appointments.

Operation Vulindlela, a joint initiative of the Presidency and National Treasury, aims to accelerate structural reforms and support economic recovery. The second phase will also focus on spatial integration, digital transformation, and restoring public transport systems.

Efforts will include promoting housing closer to economic opportunities, releasing well-located public land for social housing, and shifting to a demand-driven housing model to leverage private sector investment. Digital transformation strategies will focus on improving digital payments, system interoperability, and data integration to enhance service access and economic inclusion.