GNU expected to be a make-or-break moment for structural reform

JOHANNESBURG - The Government of National Unity (GNU) is expected to be a make-or-break moment for structural reform and economic growth as Operation Vulindlela enters its second phase.

Operation Vulindlela was formed in 2020 in a bid to overcome stumbling blocks in the energy, logistics and communication sectors.

A two-day conference is currently under way in Rosebank to take stock of headway made by the initiative - four years since it was established.

Some economists have previously described the election outcome and the formation of the GNU as favourable for the economic and fiscal outlook.

But with 10 signatories to the GNU, it remains to be seen how differences in priorities and ideologies will shape the economic policy framework over the next five years.

“It doesn’t matter how technically sound your proposals are but if there’s no political support then you will not move," said outgoing Deputy Finance Minister David Masondo.

The second phase of Operation Vulindlela coincides with the start of the seventh administration.

Masondo said he’s optimistic there will be continuity to ensure rapid, inclusive and sustainable economic growth.