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South Africa’s African National Congress called for a “reset” in its relationship with its main coalition partner the Democratic Alliance on Tuesday after weeks of contentious debate over the country’s budget.
The move comes as Africa’s most industrialized economy tries to allay investor and business concerns over a potential collapse of the government of national unity (GNU) formed less than a year ago.
ANC Secretary‑General Fikile Mbalula told journalists that the party was not planning to expel the DA from the coalition. “We must rebuild trust and ensure that every partner has a voice, because we no longer command an absolute majority,” he said. Last year the ANC lost its parliamentary majority for the first time since the end of apartheid in 1994.
DA leader John Steenhuisen reiterated his party’s commitment to the GNU on Tuesday, insisting that the ANC now demonstrate an equal commitment to the spirit and substance of power-sharing. “South Africa needs an era of co-governance, built on the implementation of bold, pro-growth reforms that create jobs and restore fiscal stability,” he said in a statement.
Mbabula said the ANC’s national working committee, which oversees the day-to-day running of the party, “resolved that we will reset the button to engage with all political parties in the GNU and those that are not in the GNU to address the impasse with regards to the budget. We intend to do that within the period of five days.”
“We have agreed to reset the button by way of ensuring that this GNU going forward is governed by rules, not just the statement of intent.”
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The reset initiative emerges as South Africa’s coalition government grapples with a fragile economy and significant policy challenges that came to head in recent budget negotiations, most notably a dispute over a proposed VAT increase intended to fund key social programs. Opposition to the VAT hike from the DA and several smaller coalition partners has strained relationships within the government, raising concerns about the coalition’s long‑term viability.
Despite the political turbulence, the ANC remains steadfast in its core policy agenda. Mbalula said the ANC would push ahead with its landmark initiatives including a national health program and contentious land expropriation measures, which were signed into law by South African President Cyril Ramaphosa despite the DA’s resistance. “This reset isn’t about compromising our principles,” he stressed. “It’s about engaging in robust, inclusive dialogue to ensure our policies and reforms benefit all South Africans.”
Sam’s view
Disagreements over the budget have exposed the vulnerabilities of a “pay-as-you-go” coalition born out of necessity. As the debate develops, the real test will be whether this “reset” can truly improve the health of the coalition, drive faster economic reforms, and forge a more stable political environment — or, if it will merely highlight the deep divisions that have long plagued South African politics.
The timing is critical. South Africa is also contending with the fallout from a global tariff war, with the US imposing 30% reciprocal tariffs, at a time when the domestic economy faces deep-seated challenges. The ANC’s reset call, therefore, is a double-edged sword: While it signals a willingness to engage in more inclusive policy-making, it also exposes the underlying vulnerabilities of a coalition that struggles with the realities of diminished support.
Room for Disagreement
Within the DA, the debate is intensifying. A Bloomberg report has highlighted a growing split among DA members: Some favor leaving the GNU to reassert the party’s independent identity, while others believe that remaining in the coalition could allow the DA to enhance its influence over government decisions. Although an exit might enable the party to reposition itself as a formidable opposition force, it also carries significant risks, including further destabilizing the political environment and unsettling market confidence.
Notable
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US tariffs threaten agricultural jobs in South Africa, DA leader Steenhuisen warned in a SABC news report.
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