The ANC and DA have found common ground — a historic, harmonious chord struck in the halls of power. The tension that once gripped the political terrain has yielded to compromise, and a cabinet deal has been reached. The duo and smaller political parties have navigated the twisting corridors of coalition politics in give-and-take negotiations that have led to a shared vision for governance.
The forex market, once jittery, now recalibrates. The rand, the depreciation of which is often dismissed by politicians as a mere inconvenience, in a folly that ignores the reality that vulnerable populations suffer disproportionally as a result, traded almost 1% stronger on Monday. Sensing opportunity, the stock market — home to trillions of rand pension funds, unit trusts and other investments for millions of South Africans — inched upward with the JSE all-share rising more than 1%.
The equity market and the rand are bouncing back from a tumultuous week that reflected the uncertainty surrounding cabinet appointments. At one point last week, the ANC and DA were on the verge of striking a deal but a few hours later the DA threatened to pull out of the government of national unity (GNU) because the ANC had backed out of the agreement to appoint one of its own as trade, industry and competition minister.
It is easy to say the back-and-forth does not inspire confidence about the stability of the GNU set-up. “The DA-ANC coalition is less stable than expected,” Bank of America analysts said in a note last week. Bank of America has a point: diverse coalitions often struggle to reach a consensus on critical issues, leading to policy paralysis and delaying necessary reform. It is true that the new cabinet may spend more time negotiating than governing. And yes, the jitters from forex and stock market players who had been watching from the sidelines are real.
But, in truth, tension is an inevitable beautiful struggle. For starters, tension ensures that decisions face scrutiny. Imagine a cabinet where everyone agrees, nodding in unison. It sounds harmonious, except it’s not. It runs the risk of overlooking critical issues. The ANC -DA friction acts as a check, preventing unilateral actions, fostering a collision of ideas and ensuring that policies emerge battle-tested. Our democracy thrives on this tension. It’s a push-and-pull that prevents autocratic tendencies.
The GNU is not supposed to be smooth; it demands compromise: the ANC and the DA — the two main partners in this setup — have distinct political ideologies, constituencies and approaches to governance.
The GNU is not supposed to be smooth; it demands compromise: the ANC and the DA — the two main partners in this setup — have distinct political ideologies, constituencies and approaches to governance
Cabinet posts became the focal point; the spotlight where interests collided and a consensus emerged. Next week, month or year the spotlight will fall on something else. Perhaps it could even be on the basic income grant, a policy proposal that has polarised economists and policymakers.
Tension, in theory, ensures that policies reflect SA’s complexities and diversity. It’s not about the ANC or DA, it’s about SA. Different views bring varied perspectives — urban and rural, business and labour, young and old. Tension is the pulse of inclusivity.
This tension is not unique to our shores. Across continents, cabinets form through similar negotiations. Coalitions emerge alliances shift, and ministers move between portfolios. The tension about cabinet posts was not a clumsy misstep; it was the heartbeat of our political system.
The next time the markets sway nervously, let’s take a step back and appreciate the rhythm. It is a beautiful struggle that injects novel ideas, reforms or approaches and ensures robust governance.
• Motsoeneng is Business Day deputy editor
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