Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

South African parties await details of ANC unity government proposal

Published 06/07/2024, 08:53 AM
Updated 06/07/2024, 02:30 PM
© Reuters. Members of the ANC attend the National Executive Committee (NEC) meeting, looking at options to form a new South African government, its Secretary-General Fikile Mbalula said in Boksburg, in the East of Johannesburg, South Africa, June 6, 2024. REUTERS/Si

By Nellie Peyton and Tannur Anders

JOHANNESBURG (Reuters) -South African opposition parties said on Friday they were waiting for more details on a proposal by the African National Congress to form a government of national unity after it lost its majority for the first time in the democratic era.

The former anti-apartheid liberation movement once led by Nelson Mandela has run South Africa since 1994. But voters, angered by years of economic stagnation, high unemployment and corruption, punished it at the ballot box on May 29.

It remains the biggest party. But the lack of an outright majority means it must now share power - and President Cyril Ramaphosa said on Thursday the ANC leadership had decided that a broad collaboration was the best way forward for South Africa.

The Democratic Alliance (DA), the largest opposition party, said it was open to talks and was "committed to the process".

"But the broad invitation to all parties ... rather than limiting it to parties committed to our current constitutional dispensation, the rule of law and a social-market economy, has undoubtedly complicated matters," spokesperson Werner Horn said.

"Our negotiation team will ... have further meetings with other parties to listen to their views and reaction," Horn added.

The ANC will have 159 of the 400 seats in the new National Assembly. Its nearest rivals are the pro-business, white-led DA, with 87 seats; the populist uMkhonto we Sizwe (MK) led by former President Jacob Zuma, with 58; and the hard-left Economic Freedom Fighters (EFF) with 39.

Ramaphosa said the ANC had already held constructive discussions with the EFF and DA, as well as with the smaller Inkatha Freedom Party (IFP), the National Freedom Party and the Patriotic Alliance.

Zuma's MK said it expected to meet with the ANC soon.

During the election campaign, the DA had called any potential ANC tie-up with the EFF or MK a "doomsday coalition" that would tank the economy. Both smaller parties advocate nationalising mines and seizing land without compensation.

The EFF said it would not be part of a government involving the DA.

"We are not desperate for positions in government," its deputy leader Floyd Shivambu told a press conference.

The socially conservative IFP, which has its power base among South Africa's Zulu people, said it was not averse to the proposal of a national unity government.

"However, the devil is in the details, which will become clearer in the coming days," it said in a statement.

The powerful COSATU trade union group, a major ANC ally, said it would engage with the ANC and another backer Communist Party in the coming days, including on the various "permutations and modalities" that would need to be in such a government.

© Reuters. Members of the ANC attend the National Executive Committee (NEC) meeting, looking at options to form a new South African government, its Secretary-General Fikile Mbalula said in Boksburg, in the East of Johannesburg, South Africa, June 6, 2024. REUTERS/Siphiwe Sibeko/ File Photo

The new parliament has to convene within two weeks of Sunday's results declaration and one of its first acts must be to elect the president.

The constitutional deadline, which will fall on or near June 16, is putting pressure on the ANC and others to reach an agreement quickly.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.