South Africa’s president, Cyril Ramaphosa, made a bold statement at the UN General Assembly last month, referring to the Government of National Unity (GNU) as the country’s “second miracle”. This coalition government, formed after the ANC’s share of the vote dropped to 40% in the recent election, has brought together the African National Congress and the pro-market Democratic Alliance, along with eight other parties, in an unprecedented political arrangement.
Ramaphosa likened this new unity to the ANC’s historic rise to power in 1994, following the end of apartheid. As the GNU approaches its first 100 days in office, there is a sense of optimism among ministers and investors that this coalition will be able to transcend political differences and drive economic growth over the next five years.
Paul Mashatile, the deputy president, expressed confidence in the stability of the GNU, highlighting the positive impact it has had on South Africa’s economy. Since the formation of the coalition, the stock market has seen a 20% increase in dollar terms, and the rand has strengthened by 6% against the dollar. Ramaphosa has set ambitious goals for economic growth, aiming for a nearly three-fold increase in output next year.
However, the road to this coalition was not without its challenges. The idea of partnering with the DA, a party viewed by some within the ANC as anti-worker, was met with resistance. Similarly, concerns were raised within the DA about compromising their principles by aligning with a party plagued by corruption and mismanagement.
Despite initial hesitations, both parties recognized the importance of forming a united front to prevent more radical factions like the Economic Freedom Fighters from gaining influence. Tony Leon, a former DA leader, acknowledged the concessions made during negotiations but emphasized the need for cooperation to avoid political fragmentation.
While the coalition has shown promise, tensions have emerged over certain legislative decisions, such as the education law amendment that sparked controversy over language policies in schools. The DA raised constitutional concerns, prompting a delicate balancing act by Ramaphosa to address these issues without derailing the coalition.
Siviwe Gwarube, the education minister and a prominent Black DA member, emphasized the need for mutual respect and collaboration within the coalition. While acknowledging the challenges of bridging ideological divides, she remained optimistic about the potential for long-term cooperation.
Despite occasional disagreements, both parties recognize the importance of working together for the greater good of South Africa. As Dean Macpherson, the DA’s public works and infrastructure minister, pointed out, the success of the coalition is essential for the government’s overall effectiveness and the well-being of the country.