/
RSS Feed
South Africa’s coalition government is under strain as deep divisions between its two largest parties—the ruling ANC and the opposition DA—were exposed in a critical budget vote.
The DA rejected the fiscal framework over its opposition to a VAT increase and calls for spending cuts across government departments. In contrast, the ANC dismissed these demands as an “austerity budget” and rallied support from smaller parties to push the budget through Parliament, securing a narrow victory of 194 to 182 votes.
The DA has since taken legal action, arguing the vote was “procedurally flawed,” and its leadership is now weighing whether to remain in what South Africans call a government of national unity (GNU).
“The DA must decide if this is a breaking point or if it should wait until the court rules on the case,” said political analyst William Gumede.
The coalition government was formed less than a year ago after the ANC lost its parliamentary majority for the first time since 1994. Business leaders had urged the two parties to work together to ensure economic stability, but the latest budget battle has cast doubt over the coalition’s future.
DA federal chair Helen Zille acknowledged the challenges of governing in a coalition, saying, “Compromise is necessary, but the ANC refuses to share power.” The ANC, however, accused the DA of “betrayal,” with parliamentary chief whip Mdumiseni Ntuli stating, “The DA is—or was—a member of the GNU. We don’t know what happens next, but the coalition remains.”
The DA found itself aligned with unlikely allies—Jacob Zuma’s uMkhonto weSizwe (MK) party and Julius Malema’s Economic Freedom Fighters (EFF)—in opposing the VAT hike, arguing it would disproportionately hurt the poor. The ANC defended the increase, set at 0.5% this year and another 0.5% next year, as necessary for funding public services like healthcare and education.
Meanwhile, the Inkatha Freedom Party (IFP) broke ranks with the DA and sided with the ANC, signaling the collapse of a pre-election alliance aimed at keeping the ruling party out of power. ActionSA, a DA splinter party, also helped the ANC secure victory after striking a deal to explore alternatives to the VAT increase.
Beyond the budget battle, tensions between the ANC and DA have surfaced in court, with the DA challenging key legislation, including South Africa’s land expropriation law. The dispute has worsened relations with the US, with President Donald Trump recently imposing 30% tariffs on South African imports and cutting foreign aid, citing concerns over governance and economic policies.
With an economy struggling under high unemployment and mounting pressure from global markets, South Africa’s coalition partners face a defining moment—either find common ground or risk deepening the country’s economic turmoil.
