The ANC top brass seeks a reset of the coalition government and has tasked its negotiating team to begin talks with parties within the government of national unity (GNU) and outside within the next five days.
“Going forward the GNU has to be governed by rules,” ANC secretary-general Fikile Mbalula adding that the negotiations will include discussions on the budget impasse and how operations of the GNU will be strengthened.
The outcomes of the discussions will then be referred to the ANC’s national executive committee (NEC) within two weeks. This is ahead of parliament’s consideration of the Division of Revenue Bill and the Appropriations Bill in May and June, respectively.
“In a week’s time we would’ve engaged with all parties and have a sense of direction in terms of the budget impasse,” Mbalula said in media briefing on Tuesday following the ANC NWC meeting.
The ANC’s negotiating team includes the party’s two deputy secretary-general, Nomvula Mokonyane and Maropene Ramokgopa, ANC chairperson and minister of mineral resources, Gwede Mantashe, ANC NEC member Nkenke Kekana, minister of international relations, Ronald Lamola and finance minister, Enoch Godongwana.
Other members of the negotiating team includes deputy minister of trade, industry and competition, Zuko Godlimpi, ANC chief whip, Mdumiseni Ntuli and deputy minister of justice, Andries Nel.
Mbalula conceded however that during Monday’s meeting of the NWC, there were divergent views on keeping the DA within the GNU considering that the party has publicly vocalised that it would support government policy such as the National Health Insurance Act and the Bela Act.
“The DA overplayed its hand and sought to salvage lost ground. It overreached in its attempt to extract budgetary concessions through arm-twisting negotiations. Its threat to collapse the budget if not given more Executive powers and concessions was met with decisive leadership. The ANC, with 7 of the 9 GNU partners and parties outside the GNU, passed the Fiscal Framework on 2 April,” Mbalula said.
“This vindicates our decision to consider a broad front that includes all parties and reaffirms that we can build principled majorities based on national interest- not ideological surrender.”
Business Day also understands that the NWC resolved to strengthen the GNU’s dispute mechanisms including finalising the GNU’s terms of reference for the clearing house mechanisms, headed by in the cabinet by Deputy President Paul Mashatile.
Tension among the GNU partners and between the ANC and DA in particular, were high following the passing of the fiscal framework, which contains the 0.5 percentage point VAT hike as part of the government’s revenue streams for 2025/26.
However, the report by parliament’s two finance committees, which was passed by the National Assembly last Wednesday, also directs the Treasury to find alternative revenue streams within 30 days. The non-binding recommendation was brought forward by ActionSA MP Alan Beesley and was a key component of the last-minute deal struck by ActionSA and the ANC to have the budget passed.
ActionSA, however, said it would not join the GNU unless the VAT hike was scrapped, saying the ANC had not approached it regarding the coalition government either.
“ActionSA affirms that the party will not give any consideration to this proposal until the VAT increase and income tax bracket creep have been resolved. It must be stressed that ActionSA has received no communication from the ANC in this regard, but the party will remain available for constructive engagements around the budget impasse,” the party said in a statement.
“Following the approval of ActionSA’s recommendations in this regard, a process has been initiated to assess revenue alternatives that would allow for the removal of these increases. Over the weekend, ActionSA made submissions of revenue alternatives exceeding R100bn in this regard.”
Update: April 8 2025
This article has been updated.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.