President Cyril Ramaphosa has affirmed his commitment to working with all political parties represented in the government of national unity (GNU) as SA enters a new era of coalition politics after three decades of ANC dominance.
Ramaphosa was sworn in as the head of state on Wednesday as the rand broke below R18 to the dollar, strengthening to its best levels in 11 months, while the JSE all share index, the broadest measure of stock market performance, traded around record levels. Markets view the re-election of Ramaphosa and the incoming government as positive, with the present fiscal trajectory and fiscal discipline expected to continue.
Ramaphosa will lead the seventh administration along with other members of the executive, which will include individuals from minority parties — including the DA, Patriotic Alliance (PA), IFP and GOOD — that make up the GNU after the ANC lost its outright majority in May’s general election. “Understanding that no party can govern alone and make laws alone, these parties have agreed to work in partnership, to employ their talents for the good of the country and the progress of its people,” Ramaphosa said in an address after his inauguration ceremony.
“We must reject every attempt to divide or distract us, to sow doubt or cynicism, or to turn us against one another ... Those who seek to undermine our institutions will fail because democracy lives in the hearts of our people and will never be dislodged.”
US investment banker JPMorgan upgraded SA’s outlook on Tuesday from underweight to overweight, saying that “the tie-up between the five parties in the GNU could bring large offshore inflows into SA assets in the near term”.
Among the commitments of the GNU are inclusive and sustainable economic growth, addressing crime and corruption, and stabilising the government.
“As the president of the republic, I will work with everyone to reach out and work with every political party and sector that is willing to contribute to finding solutions to the challenges our country faces as we transition to a new decade of freedom,” said Ramaphosa.
His inauguration was attended by heads of state and leaders from elsewhere in Africa.
Former SA presidents Thabo Mbeki and Kgalema Motlanthe were in attendance. Jacob Zuma became the first former president to skip his successor’s inauguration in 30 years of democracy.
Ramaphosa first took over as president of the country in February 2018 after Zuma was forced to resign.
Since Zuma’s exit, Ramaphosa has been working to clean up the state and its institutions, which were decimated by state capture.
The former president has since left the ANC and now leads the MK party.
Horse-trading between parties in the GNU is expected to intensify over the next two days as the second phase of the coalition negotiations begins to take shape. DA leader John Steenhuisen said that his party would seek clarity from the ANC on the inclusion of the PA in the GNU.
“The original agreement made it clear that parties would be added only with consultation. We have not been consulted about the PA and their role is not yet clear,” said Steenhuisen.
“I am sure when we sit down with the president in the next 48 hours, that will become clearer. It is time for us to set aside petty partisanship that we saw during elections. We all wore different party T-shirts. The T-shirt we now need to wear is one with the SA flag and the party logo at the back of it,” he explained.
Steenhuisen hinted that he would be appointed as the minister in the presidency in Ramaphosa’s new cabinet.
“We do have to merge policies as soon as possible and do a plan for government,” he said ahead of the president’s swearing-in.
Freedom Front Plus (FF+) leader Pieter Groenewald said that his party had submitted documents to the ANC to form part of the GNU.
The two parties have already formed an agreement in the Northern Cape, where ANC premier Zamani Saul was re-elected last Friday with the help of the PA and the FF+.
“We expect feedback from the ANC either today or tomorrow and we expect it to be positive, Groenewald said.
With Lindiwe Tsobo
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