Can the ANC and DA Actually Govern Together? The Budget Says No.

As South Africa’s budget battle intensifies, deep divisions within the GNU raise doubts about its stability, effectiveness, and future

March 12, 2025, will mark a key date in the history of South Africa. It has opened up questions about the effectiveness of the GNU and once again highlighted the failure of the DA and ANC to come together for the benefit of the nation rather than their respective constituents.

Wednesday, February 19, 2025, was already a historic day for the Executive branch. GNU partners opted to delay the budget after a disagreement about a 2% increase in VAT. This marked uncharted territory, as it was the first time in South Africa’s democratic era that the budget had been delayed.

The ANC, which historically made the budget process relatively painless and devoid of public input—having held the majority in the previous six administrations—lost its majority in last year’s election, dropping to 40%. It opted for the GNU, which it would lead.

In the first few months of the 7th administration, the ANC continued to act unilaterally in its approach to policy, pushing through the BELA Bill, the NHI, and the Expropriation Act. The DA, the second-largest party in both Parliament and the GNU, continued to argue that this violated GNU processes and undermined policies drawn up between GNU parties.

Lacking the legislative power to take direct action—since the legislation passed was from the previous administration—the DA saw the budget as a moment to regain political ground. Unwilling to support the budget in its current form, it now wields significant political power.

The ANC is now forced to compromise, particularly on policy and possibly on legislation, in hopes of regaining ground lost in recent months. The ANC may be cornered.

Already, the majority of political parties reject the budget in its current form, except for the IFP, the Patriotic Alliance, and other smaller parties. However, according to the Daily Maverick, the ANC will still be short of five MPs needed to pass the budget.

The next two months—considering the fiscal framework, Division of Revenue Bill, Appropriations Bill, and Revenue Bills—will test South Africa's mettle. As the National Assembly and the National Council of Provinces are likely to amend the budget, there will be intense politicking.

At this moment, all parties have an opportunity to claim victory and position themselves as having saved South Africa from the ANC’s inefficiencies—if they can secure their compromises. If the DA refuses to support and partner, the EFF could step in instead.

With municipal elections approaching in 2026, every party will face consequences based on how they navigate the coming months. Any party supporting the ANC’s proposed 1% VAT increase over the next two years may be perceived as selling out the South African public.

Now more than ever, we must question whether the GNU has been effective. From the initial negotiations to cabinet appointments and policy disputes, there has been little sign of political maturity or sensitivity in a country desperate for hope.

The discussions have led to a clearinghouse mechanism designed to enable effective discourse and decision-making. Yet, the DA and ANC remain divided in both politics and policies while claiming to govern for all citizens.

It is important to note that Deputy Minister of Finance, Mr. Ashor Nick Sarupen, is part of the cabinet and would have been well aware of the proposal. This disagreement should not have come as such a shock. More importantly, effective solutions were tabled.

Suggestions such as empowering SARS to collect tax revenue would help address the R60 billion shortfall the government is seeking, especially given that SARS currently fails to collect an estimated R800 billion. The proposed budget already grants SARS R7.5 billion, which still needs to be voted on.

The GNU needs a more pragmatic approach to politics—one that is organized, structured, and has clear goals for the economy, unemployment, and social development. Job creation and pro-growth policies are beneficial, but without clear metrics, there is no way to evaluate government performance or hold leaders accountable.

The ANC must take responsibility for the economic crisis and budgetary mess we are in. It must actively review government expenditure, as national departments and State-Owned Entities (SOEs) have collectively spent R123.56 billion in irregular, fruitless, and wasteful expenditures. Instead of squeezing citizens under an already stressful financial burden, the ANC should clean up its own inefficiencies.

March 12, 2025, may mark the beginning of the end. Without a passed budget, the government can only spend up to 45% of the previous budget—enough for roughly five months before a government shutdown. This budget marks uncharted territory for South Africa. It may be the straw that breaks the GNU’s back. Only time will tell.