Is South Africa’s coalition government about to fall apart?
South Africa’s coalition government is on shaky ground, with sharp divisions between its two biggest parties—the African National Congress (ANC) and Democratic Alliance (DA)—exposed in a crucial vote on the national budget.
The centre-right DA voted against the fiscal framework, a key part of the budget, after rejecting an increase in VAT and demanding spending cuts across all government departments. The ANC, which identifies as centre-left, refused the DA’s push for what it termed an “austerity budget.”
Demonstrating political savvy, the ANC secured the support of smaller parties, both in and out of government, to pass the framework by 194 votes to 182.
The DA has filed court papers challenging the vote as “procedurally flawed” and is set to decide whether to remain in the government of national unity (GNU).
Professor William Gumede of Wits University noted it was uncertain if the DA would quit immediately, stating the party must decide if this moment is a tipping point or if it should wait for the court’s decision.
The coalition was formed less than a year ago after the ANC lost its parliamentary majority for the first time since 1994. Business groups had encouraged a coalition to maintain economic stability.
Now, DA spokesman Willie Aucamp has accused the ANC of a “serious infraction,” while DA federal chair Helen Zille stressed that compromise is necessary in a coalition, but accused the ANC of refusing to share power.
ANC parliamentary chief whip Mdumiseni Ntuli described the DA’s move as a “complete betrayal,” questioning its future in the GNU, while President Cyril Ramaphosa’s spokesman said, “You can’t be part of a government whose budget you opposed.”
In a twist, the DA voted alongside its ideological opponents—Jacob Zuma’s MK party and Julius Malema’s EFF—against the VAT hike, claiming it would burden the poor. DA leader John Steenhuisen criticized the ANC for being out of touch with citizens’ economic struggles.
The ANC argued the VAT increase—0.5% this year and another 0.5% next year—was vital to fund public services like health and education.
The Inkatha Freedom Party (IFP), which had allied with the DA pre-election, sided with the ANC, effectively ending its pact with the DA. ActionSA, a DA breakaway party, also supported the ANC, stating it had reached an agreement to explore alternative revenue measures and potentially scrap the VAT increase.
Professor Gumede said the DA used the budget standoff to show it is “pro-poor,” while noting that public frustration over poor services made it hard for the ANC to justify new taxes.
The DA is also challenging three other ANC-backed laws in court, including the controversial land expropriation act—a measure that partly led to U.S. President Donald Trump’s administration cutting aid to South Africa.
Trump has since imposed a 30% tariff on South African imports, further hurting its economy. Ramaphosa’s office condemned the tariffs as “punitive,” warning they could damage trade and shared prosperity.
With unemployment over 30%, many South Africans are calling on the coalition leaders to resolve their differences or risk worsening the economic crisis.
Credit: BBC
