South Africa’s African National Congress (ANC) reaffirmed its commitment to the country’s multiparty coalition on Tuesday, despite growing tensions with its main partner, the Democratic Alliance (DA), following a heated budget dispute.
The rift deepened after the DA voted against the national budget and launched a legal challenge to block it, raising fears about the stability of South Africa’s first coalition government since the end of apartheid. The fallout has also shaken investor confidence, contributing to a sharp decline in the value of the rand.
DA leader John Steenhuisen called for renewed talks on power-sharing with the ANC, saying that the 2024 election results, which left no single party with a majority, demanded a new approach.
“The electorate sent a clear message: single-party rule is over, and no one party gets to dictate our policy direction,” Steenhuisen said in a statement.
Separate meetings were held by the ANC and DA leadership on Monday to chart a way forward after last week’s contentious budget vote, which followed failed negotiations over key provisions. The DA had sought a greater influence over economic policy, frustrated by earlier disputes on proposed health insurance reforms and education legislation.
However, the ANC resisted the DA’s demands and instead turned to a smaller party outside the coalition to secure enough support for the budget’s first legislative hurdle.
At a press conference, ANC Secretary General Fikile Mbalula accused the DA of behaving like an opposition party by opposing major government initiatives.
“This dishonesty undermines the very essence of collective governance,” Mbalula said, though he added that talks with the DA would continue.
He emphasized that the ANC remained committed to the coalition but stressed that its “integrity cannot be compromised.” Mbalula also indicated that the ANC would engage other coalition partners and opposition parties to resolve lingering disagreements, particularly over a controversial plan to increase value-added tax (VAT).
The possibility of the pro-business DA withdrawing from the coalition has raised concerns about the government’s stability and contributed to recent volatility in South African financial markets.