The future of South Africa’s Government of National Unity (GNU) hangs in a precarious balance following the Democratic Alliance’s (DA) threat to withdraw from the coalition. This shocking ultimatum comes in light of a recent Budget approval that includes a controversial 1% increase in Value Added Tax (VAT), a move facilitated by the African National Congress (ANC) joining forces with minor parties to secure the necessary votes.
On the eve of the Budget’s passage, ActionSA emerged as a key player, helping the ANC navigate through opposition, enabling the adoption of the fiscal framework report that marks the first critical step toward finalising the 2025 Budget. However, this alliance has ignited fury within the DA, deepening the rifts already palpable within the coalition. DA leader John Steenhuisen expressed vehement disapproval, stating that his party would today file a court application contesting the legality of Parliament’s procedures in passing the Budget.
Steenhuisen did not mince his words: “It is unthinkable that ActionSA has handed this VAT hike to the ANC on a platter,” he said. He further condemned the coalition’s inability to tackle critical economic issues that plague ordinary South Africans. “If they bought their own groceries or filled their tanks, they would know how expensive life already is,” he added, emphasising the disconnect between the ruling party and the populace.
The DA’s concerns were echoed during heated discussions as Finance spokesperson Mark Burke prepared party members for the potential fallout. “We joined this GNU government to drive the growth and jobs agenda, not to enable the worst parts of the ANC. If we’re forced to exit this government for driving a growth and jobs agenda, then so be it,” he declared. His staunch opposition to the Budget was clear: “It’s not worth the paper it is printed on.”
Complicating matters further, leaked audio captured President Cyril Ramaphosa’s recognition of the DA’s precarious position within the coalition. Ramaphosa’s observations hinted at the challenges of balancing opposition and collaboration within the GNU, while Patriotic Alliance leader Gayton McKenzie accused the DA of using the plight of the poor for political leverage.
With the DA scheduled to meet soon to deliberate on its next steps within the GNU, the political landscape is set for significant upheaval. As alliances shift and tensions mount, the citizens of South Africa are left to grapple with the implications of these political maneuvers—an uncertain journey through an already volatile economic terrain.