DA leader John Steenhuisen reiterated the party’s commitment to the government of national unity (GNU) hours before discussions with President Cyril Ramaphosa on Tuesday to iron out the contentious issue of its influence on legislation passed during the previous administration.
“Our entrance to the GNU was not made lightly, nor will a decision to leave the GNU be taken lightly,” Steenhuisen said. “However, the DA must be allowed to express itself. If that is not possible, it will make future involvement too difficult to justify to our voters.”
The meeting took place before Wednesday’s cabinet lekgotla, which will be attended by members of all spheres of government, and days after Ramaphosa signed the Expropriation Bill into law.
The bill brought the ideological divide between the DA and the ANC into sharp focus, just months after Ramaphosa signed the Basic Education Laws Amendment Act and as his party prepares to implement the National Health Insurance Act.
The DA is fiercely opposed to all three pieces of legislation.
The three laws are integral to the ANC’s broader narrative to maintain its relevance amid a sharp decline in public trust, advocating for transformation and addressing historical equalities in education, property ownership and healthcare.
For the DA, which advocates for a nuanced approach to the implementation of the laws and has expressed broad support for addressing those apartheid legacies, the laws in their current formats challenge its stance as a defender of the constitution.
“We knew what the risks were when entering the GNU, but also we knew what the risks were for SA if we did not enter into coalition with the ANC,” Steenhuisen said.
“The DA is willing to compromise, but not on what goes against the constitution. Ministers, when elected, do not swear allegiance to the president or a political party, but to the constitution. This is not how coalitions work. It has been badly handled [thus far] and that is why I need to have a meeting with President Ramaphosa.”
Scrutiny
The chief bone of contention is whether coalition partners should have a say on legislation passed during the previous administration. That includes NHI, the biggest reform of healthcare that the DA believes will not stand up to constitutional scrutiny and will lead to the collapse of the multibillion-rand private healthcare sector.
“I will meet President Ramaphosa to improve relations and stability in the GNU, which is a clear vehicle for economic growth. The DA does believe in universal access to healthcare, but we believe the NHI as presented will not achieve universal healthcare, but collapse the private healthcare sector,” Steenhuisen said.
“The DA will not be a part of any government that trashes the constitution... If there is an insistence on NHI, it will not be tolerated,” he said.
At a separate press conference on Tuesday, the ANC insisted that the DA had no business meddling in past legislation.
“The ANC must remain a relevant force for transformation in SA politics unafraid to confront difficult questions and offer solutions that are in the best interest of the people,” secretary-general Fikile Mbalula said.
“The ANC will continue to be the leader of society advocating for the transformation of SA into a just, democratic and prosperous society for all.”
The stability of the GNU has been an important factor in improved sentiment about the economy, which has hardly grown for over a decade, lifting the mood in corporate boardrooms and making the rand one of the best-performing currencies in emerging markets.
“Despite some volatility and uncertainty, investors realise we’re moving in the right direction,” said Old Mutual chief economist Johann Els, citingthe GNU’s success in reducing political risk, its progress in structural reforms such as those in the supply of electricity, and lower interest rates and inflation. “There’s a serious commitment within the parties that form the GNU to maintain it, but ... all these uncertainties add to market risk.”
Old Mutual chief investment strategist Izak Odendaal said friction in the GNU was unlikely to shake financial markets much as real economic reforms would outlive the set-up.
“The GNU definitely brings positive sentiment and a sharper focus on implementation and good governance, but I think those big changes that are important to the economy will outlive the GNU.”
Outperformance of the SA bond market against its global peers was evidence investors saw SA as a bright spot in an uncertain global market, he said.
Update: January 28 2025
This story has been updated with new information.
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