A power-sharing agreement between South Africa’s governing African National Congress (ANC) and the opposing Democratic Alliance (DA) is close to being secured, a development that could guarantee the re-election of Cyril Ramaphosa as president. An agreement could see Ramaphosa inaugurated for his second full term by parliamentarians on Friday.
Negotiations are advancing, leading to a strengthening of the rand on Thursday. If approved by the ANC’s primary deciding bodies – which include union affiliates and the national executive committee – the pro-market DA is set to gain several cabinet roles under the coalition, probably involving the Zulu-focused Inkatha Freedom Party (IFP).
A source close to the discussions says the negotiations are approaching a conclusion, but no official agreements have been signed yet. The IFP previously confirmed its intention to join an ANC-DA coalition. Such a move could help strengthen the appeal to Zulu voters, particularly those who departed the ANC for former president Jacob Zuma’s MK party.
Ramaphosa has referred to future alignments as a “government of national unity”, aiming to ease resistance amongst ANC leftists against a deal with the DA. However, neither MK nor the left-wing Economic Freedom Fighters, under the leadership of Julius Malema, are expected to take part in the coalition.
Malema remarked in a Thursday press conference that his party won’t be part of a government involving the DA and MK party due to their perceived representation of colonialism and white supremacy. He predicted the end of the ANC in his statement.
The ANC’s national executive had a meeting on Thursday and will likely declare their final decision on the power-sharing agreement later. Jason Swartz of Old Mutual Investment Group pointed out the recent rally of the rand, attributing it to expectations of the EFF’s withdrawal and the DA’s involvement in the government. The DA’s push for a total coalition was deemed the cost of its support for Ramaphosa, who received a record low vote of 40% in the previous month’s election, commented political analyst Frans Cronje.
“Mr Cronje expressed that a tranquil transition to a coalition would markedly contribute to the democracy of South Africa, by staving off a potentially destructive swing left and also avert the violence threatened by Mr Zuma, who contests the election outcome.
Mr Cronje observed, “Take note of our current state and what we have avoided; a complete populist decay and no gunfights in the public spaces.”
This Friday, Parliament prepares to usher in a new President, Speaker, and MPs as the ANC lacks majority for the first time in three decades.
On Wednesday, the party congregated with its alliance partners, the workers union Cosatu and the South African Communist Party (SACP), to put forth its proposals.
Previously, SACP Secretary General Solly Mapaila has voiced dissent over a coalition with either the DA and MK, while Cosatu seems more receptive to a possible agreement.
Referencing the liberal economic approach of the DA, a party generally associated with white and other minority voters and led by John Steenhuisen, Cosatu spokesperson Matthew Parks stated that “the DA will always be challenging to reconcile with”. However, he acknowledged that Cosatu recognises “the logic of the ANC in view of the quandaries the country is grappling with and the fact that the majority was not in its favour”. The information is protected under The Financial Times Limited 2024 copyright.”