JOHANNESBURG, South Africa: The African National Congress (ANC) announced that South Africa’s new government comprises five parties, representing over two-thirds of the seats in the National Assembly, with ongoing talks with other parties. Following the recent election, the ANC had to form alliances after failing to secure a parliamentary majority for the first time since the end of apartheid in 1994.
ANC leader Cyril Ramaphosa was reelected as president, with support from the white-led Democratic Alliance, the socially conservative Inkatha Freedom Party, and the right-wing Patriotic Alliance. The ANC also welcomed another smaller party, GOOD, into the unity government pact, collectively representing 273 seats in the 400-seat National Assembly.
Key priorities of the unity government include fostering rapid, inclusive, and sustainable economic growth, promoting fixed capital investment, job creation, land reform, and infrastructure development. Decision-making will be consensus-driven, ensuring representation for all participating parties.
However, the Marxist Economic Freedom Fighters party (EFF), holding 39 seats, declined to join a government involving the DA or the Freedom Front Plus, which enjoy support from the white minority. Similarly, the uMkhonto we Sizwe party, led by former President Jacob Zuma, opted out and formed an alliance with smaller opposition parties in parliament called the “Progressive Caucus,” serving as official opposition to unity government.
While the unity government presents an opportunity for growth-friendly structural reforms and prudent macroeconomic policies, challenges loom regarding potential ideological divisions and fractures within the ANC. HSBC economist David Faulkner noted that while the government could facilitate growth-oriented policies, internal divisions might hinder the establishment of a stable policy framework.
The ANC emphasized consultation with GNU parties in appointing the Cabinet, maintaining existing government decision-making protocols and budgeting processes. Discussions are ongoing with additional parties to broaden the government’s inclusivity. As South Africa navigates this new political landscape, the balance between diverse ideological interests and the imperative for coherent governance will be crucial for the nation’s stability and economic trajectory.
