BLSA Tracker Highlights Logistics Lag as Institutional Resistance Hinders Private Sector Integration

BLSA CEO Busi Mavuso warns that Transnet's institutional resistance is stalling logistics reform, while electricity gains ground after presidential intervention.

By: AXL Media

Published: Apr 28, 2026, 8:47 AM EDT

Source: Information for this report was sourced from Engineering News

Diverging Trajectories in National Infrastructure Reform

The latest Reform Tracker from Business Leadership South Africa indicates a divided landscape for the country’s economic restructuring efforts. While broad central government initiatives are moving in a positive direction, the logistics sector has emerged as a significant outlier, showing a measurable decline in progress. BLSA CEO Busi Mavuso identified several contributing factors to this regression, including missed deadlines for essential network statements and delays in the passage of the National Rail Bill, which have collectively stalled momentum in the transport and supply chain sectors.

Institutional Obstacles to Private Sector Rail Participation

A primary concern highlighted by the business organization is the current structure of private sector involvement within the logistics system. Mavuso pointed out that State owned Transnet continues to unilaterally design the terms for all projects and participation agreements. This practice has resulted in network access agreements that heavily favor the parastatal entity over potential private partners. Currently, eleven private operators are attempting to secure access to the Transnet network, but they are facing substantial constraints that may undermine their eventual operational success.

Presidential Intervention Stabilizes Electricity Unbundling

In contrast to the logistics sector, electricity reforms have seen a recent improvement in their trajectory. This shift followed a review in the first quarter of the year that uncovered a deviation from established policy regarding the unbundling of Eskom. Initial proposals from Eskom and the Department of Energy and Electricity reportedly conflicted with the goal of creating a neutral hub for a competitive market. However, President Cyril Ramaphosa utilized his State of the Nation address in February to reaffirm the original policy, effectively realigning the institutional structure with national objectives.