Can South Africa’s national unity government succeed?
Jun 20, 2024
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FT journalist Monica Mark and Biznews.com's Alec Hogg discuss South Africa's power-sharing government under President Ramaphosa, focusing on economic renewal, investment, and the challenges facing the country. They analyze the implications of coalition government, the roles of political parties like EFF and MK, internal dynamics of the ANC, and South Africa's economic future amidst adversity.
The exclusion of radical parties from South Africa's coalition government brings relief to investors and business, but stability concerns persist.
The coalition government faces challenges in balancing differing ideologies, such as ANC's stance on minimum wage conflicting with DA's free market beliefs.
President Ramaphosa's reinforced position within the ANC and the coalition's structure present opportunities for reform and progress in South Africa.
Deep dives
New Coalition Government in South Africa
After recent elections in South Africa, a coalition government was formed, involving the African National Congress (ANC) and the pro-business Democratic Alliance, among other smaller parties. This coalition marks a significant shift as it excludes radical parties like the Economic Freedom Fighters (EFF) and the MK party led by former president Jacob Zuma. The exclusion of these radical parties has been met with relief by investors and the business community, although concerns about future stability remain.
Challenges and Priorities for the Coalition
The new coalition government faces challenges in balancing differing ideologies, such as the ANC's stance on the national minimum wage that conflicts with the DA's free market beliefs. Addressing pressing issues like unemployment and infrastructure, including resolving power cuts and improving infrastructure, are crucial priorities. The government aims to focus on job creation, land reform, and fixed capital investments, which depend on resolving key issues like electricity supply and infrastructure development.
Ramaphosa's Position and Path for Reform
President Cyril Ramaphosa's position within the ANC has been reinforced, with his ability to navigate the party dynamics and secure support. The coalition's structure, with key decisions requiring a 60% agreement in parliament, presents an opportunity for reform and progress. The DA's emphasis on good governance and fiscal discipline aligns with the need to stabilize South Africa's economy and attract investment, signaling a potential positive shift for the country's future.
EFF and Zuma's Role and Impact
While the EFF led by Malema shows signs of adopting a more serious political approach and reducing past disruptive behaviors, former president Zuma's opposition stance raises concerns about undermining the democratic process. Zuma's claims of vote rigging and challenges to the election results pose threats to stability and governance. The balance between accommodating different ideologies while maintaining political stability remains a key concern for the new coalition government.
Tackling South Africa's Challenges
The coalition government faces the task of dealing with entrenched social and economic challenges, including inequality, high unemployment rates, and infrastructure deficiencies. Balancing the differing perspectives within the ANC and the DA is essential for effective governance and addressing pressing issues like power shortages and economic growth. By prioritizing fiscal discipline and governance reforms, the government aims to attract investment and drive positive change in South Africa's economy and society.
This week South Africa’s President Cyril Ramaphosa took office at the head of the country’s first power-sharing government since the immediate post-apartheid period. Many are hoping this will offer the prospect for economic renewal and bring much needed investment back to the country. Gideon discusses its chance of success with the FT’s Monica Mark and Alec Hogg, editor and publisher of Biznews.com.
