---
title: "Joburg stands in the way of reform’s (almost) unstoppable momentum"
description: "Reforms under President Cyril Ramaphosa appear increasingly entrenched, with business confidence growing and Operation Vulindlela maintaining momentum. But local government and the rule of law could prove the limits of how far the reform drive can go."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "ANALYSIS"
author: "Stephen Grootes"
author_url: "https://www.dailymaverick.co.za/author/stephengrootes/"
canonical_url: "https://www.dailymaverick.co.za/article/2026-08-24-joburg-stands-in-the-way-of-reform-s-almost-unstoppable-momentum/"
published: "2026-08-24T22:23:04"
lang: "en-ZA"
word_count: 1007
---

# Joburg stands in the way of reform’s (almost) unstoppable momentum

> Reforms under President Cyril Ramaphosa appear increasingly entrenched, with business confidence growing and Operation Vulindlela maintaining momentum. But local government and the rule of law could prove the limits of how far the reform drive can go.

By Stephen Grootes · Published 25 August 2026, 00:23 SAST

## Key points
- Ramaphosa’s reform drive looks firmly entrenched: business confidence has risen and Operation Vulindlela is building momentum – the government insists the changes won’t be reversed.
- There are real wins – big private investment in renewables, easing Transnet bottlenecks – but progress is slow, many deliverables remain “in progress” and external shocks could blunt gains.
- Local government, above all the City of Joburg, may be the reform limit case: chronic waste, unfunded budgets and toxic politics make business partnerships almost impossible without a political workaround.
- Weak rule of law and failing municipalities nationwide risk neutering national reforms; Vulindlela may be the right vehicle to try, but constitutional and political barriers are steep.

## Content

![Signpost-Analysis-NEWlabels](https://cdn.dailymaverick.co.za/i/3tU4oK7Z2AC7ZB6o3oQ1aUlWuEU=/200x100/smart/filters:strip_exif\(\)/file/dailymaverick/wp-content/uploads/2025/10/label-analysis-2.jpg)

While the reforms seen in government now appear to have become entrenched, questions remain about how much momentum has been built up behind the process. The next phase of the “Government-Business Partnership” is expected to focus on local government, which will pose perhaps impossible political questions and provide a hard limit to the extent of reform.

On Thursday, 20 August 2026, while speaking at the launch of the third phase of the partnership, President Cyril Ramaphosa said the reforms already achieved would not be reversed.

As he put it: “People have been concerned: are these reforms reversible? Will they be reversed one day, if something happens? My answer is that no, they are not going to be reversed. We want to embed them so that they do not reverse.”

Importantly, organised business appears to agree with him. Business For SA head Martin Kingston told [The Money Show](https://omny.fm/shows/the-money-show/phase-3-of-government-business-partnership-what-changes-this-time) last week that the president is correct, these reforms will not be reversed.

This is important because it means that the government has successfully given business confidence in its reforms. This should mean business is incentivised to increase its levels of investment.

[Read more

Ramaphosa launches Phase 3 of Government-Business partnership — 3% growth goal remains elusive

August 20, 2026 ![Image](https://cdn.dailymaverick.co.za/i/t4bAs5E2k7JP4LyOIWsBG5B06-o=/450x0/smart/file/attachments/orphans/WhatsAppImage2026-08-20at150722copy_549167.jpeg)](https://www.dailymaverick.co.za/article/2026-08-20-ramaphosa-launches-phase-3-government-business-partnership-3-growth-goal-remains-elusive/)

It also appears, at least for the moment, that Operation Vulindlela has momentum. Its boss, Rudi Dicks, and the National Treasury Director-General Duncan Pieterse both [appear publicly bullish](https://www.businessday.co.za/opinion/2026-06-05-rudi-dicks-and-duncan-pieterse-operation-vulindlela-what-the-evidence-shows-and-what-comes-next/) that this movement will continue.

While all of this is incredibly positive, it should be remembered how long it has taken. Ramaphosa became president in February 2018, but it was only in June 2021 that this writer felt confident enough to [suggest that he was in a position](https://www.dailymaverick.co.za/article/2021-05-30-lights-camera-reform-ramaphosas-window-of-opportunity-is-nigh/)to start to drive real reforms.

### Renewable power

Shortly afterwards he [twisted then energy minister Gwede Mantashe’s arm](https://www.dailymaverick.co.za/article/2021-06-14-gwede-mantashe-bruised-but-never-defeated/)and allowed private companies to produce electricity and sell it. That decision, and the intense load shedding of two years ago, led directly to the huge investment we now see in renewable power.

But that was all five years ago. And it is only now that Eskom is in a position where it actually has too much power in the grid and thus has to ask independent power producers (IPPs) to [curtail their production](https://www.moneyweb.co.za/news/south-africa/ntcsa-is-paying-more-to-buy-nothing/).

The reforms at Transnet, too, have taken some time to bear fruit. But coal companies like Exxaro have recently confirmed being able to sell more coal because the railway system has improved.

At the same time, Business Leadership SA’s [Reform Tracker](https://tracker.blsa.org.za/) outlines how of the 247 deliverables that have been identified, 45 have been completed, 29 have been halted and 173 are still in progress. But, Business Leadership SA has also been very critical of what it sees as entrenched interests blocking the continued unbundling of Eskom. In its last [quarterly report](https://tracker.blsa.org.za/quarterly-review/quarterly-review-1-april-to-30-june/) it warned that the process of reform could lose momentum or even stall.

![BM-Ed-Gov/Bus](https://cdn.dailymaverick.co.za/i/etke7m2eZPiVxRhthKqNyxaydhw=/200x100/smart/filters:strip_exif\(\)/file/attachments/orphans/WhatsAppImage2026-08-20at150722_995591.jpeg)

*President Cyril Ramaphosa with Adrian Gore during the launch of Phase 3 of the Government-Business Partnership held at Summer Place in Johannesburg on 20 August 2026. (Photo: Kopano Tlape/GCIS)*

While the implemented reforms should boost our economy there is very little clear impact that people can see as yet. And other variables, including higher oil prices, could prevent the economy from growing meaningfully.

That said, Ramaphosa’s public statements about investment in infrastructure, if actually implemented, would have a big impact. It would create a large number of jobs and help the economy to grow for years.

But two major issues – local government and the rule of law – may be eternally resistant to reform.

Last week’s launch saw promises by business leaders to work with councils, and particularly with the City of Joburg to help it fix its problems.

But it is obvious they cannot do it with this administration. There would be no point providing help, and particularly money, to a group of people who are able to lose about [10% of a budget of R83-billion](https://fm.co.za/2025-02-21-how-joburg-set-fire-to-your-money/). Or employ hundreds of new managers while passing an [unfunded budget](https://www.dailymaverick.co.za/article/2026-05-27-joburgs-unfunded-budget-is-a-ticking-time-bomb-for-essential-services/).

However, who could be a credible partner for business in Joburg?

### Vexed question

This ultimately leads to the incredibly vexed question of whether business would only contribute resources, skills and money to Joburg if it were led by the DA. Or someone other than the ANC. And presumably not MK or the EFF.

The only other option might be for the national government to find a workaround in which it could provide business with a guarantee in some form.

However, since the current groups involving business and the Presidency in Joburg have not been able to stop the City from wasting money, there would be no point continuing with that arrangement with the same people in charge of the City.

Just this one factor alone could provide a hard limit to the extent of reform.

While businesses can increasingly provide or buy or generate electricity, providing water and other services reliably is more difficult, and more expensive. If Joburg can’t be fixed, it may be that the reform process’ success will be limited.

Unfortunately, the same holds true for reform and thus the future of businesses in councils in most of the country. There will be no impact from the national government’s reform programme for firms in Ditsobotla if that council continues to fail residents so spectacularly.

The other obvious point is that it is very difficult for businesses to grow if the rule of law is weak, and there is no working criminal justice system. Testimony at the Madlanga Commission has shown how far away a working criminal justice system is.

It seems almost impossible now for the reforms Ramaphosa has led to be reversed. They have been entrenched and will be entrenched further in the future.

It is also rational to suggest that Operation Vulindlela, which has been so successful, is the right body to tackle local government.

But the politics of local government, and the fact that each council has constitutional rights, might well pose challenges that prove to be insurmountable. **DM**