PoliticsPREMIUM

Paul Mashatile says GNU ‘coherent’ despite economic policy rifts

Deputy president tells MPs the coalition remains united while advancing sweeping reforms in energy, transport and state capacity

Bosberaad at Cradle of Humankind in Gauteng. The meeting was attended by Velenkosini Hlabisa (IFP) deputy president Paul Mashatile (ANC), President Cyril Ramaphosa, John Steenhuisen (DA), Ganief Hendricks (Al Jama-Ah). Back, Corné Mulder (FF Plus), Songezo Zibi (Rise Mzansi), Mzwanele Nyhontso (PAC), Bantu Holomisa (UDM), and Brett Herron (GOOD). (Supplied/GCIS)

Deputy president Paul Mashatile says the government of national unity (GNU) remains coherent despite public disagreements among coalition partners on economic policy.

He told MPs on Tuesday the coalition was united in its approach to governance despite ideological divides.

EFF leader Julius Malema had asked whether the public pronouncements and policy statements of parties within the GNU on key economic matters during the previous budget impasse represented a government that was united and coherent in its approach to economic policy formulation and implementation.

Malema also asked how the deputy president, as leader of government business, reconciled conflicting public positions of coalition partners.

Mashatile acknowledged that tensions during the 2025 budget process reflected differences among the 10 parties in the GNU but maintained that the coalition was functioning.

President Cyril Ramaphosa and deputy president Paul Mashatile at the GNU leaders’ retreat. (Jairus Mmutle)

“The GNU is coherent and is working,” he said, adding that such differences were “inevitable in a government made up of 10 political parties”.

He pointed to the GNU statement of intent, signed in June 2024, as the guiding framework for coalition governance. Disputes, he said, were being managed through consensus‑building and a designated conflict resolution mechanism.

In October 2024, President Cyril Ramaphosa established the GNU clearing house mechanism to address policy disagreements, delegating its leadership to the deputy president.

The mechanism has already been used to manage concerns about the Basic Education Laws Amendment Act, with recommendations referred to the presidency and the department of basic education. The clearing house adopted terms of reference confirming its role as a recommending body, with unresolved matters escalated to the political leaders’ forum.

The GNU leaders concluded a two‑day retreat last week, reflecting on the implementation of the statement of intent and reaffirming their commitment to unity.

He said coalition partners had agreed to improve collaboration in fiscal planning, having learnt lessons from the budget impasse earlier this year.

The deputy president said the GNU was focused on rapid and inclusive economic growth, citing the SA–France investment conference held in May and investment promotion activities in London in late 2024 as examples of efforts to attract foreign direct investment.

“Together, we are executing an economic programme agreed upon by all partners in this government,” he told MPs.

In a separate question, DA chief whip George Michalakis asked what legislative items Mashatile intended to pursue regarding the four priorities adopted in the GNU’s medium‑term development plan 2024-29: inclusive economic growth, poverty alleviation, reducing the cost of living and building a capable state.

Mashatile said the coalition was pursuing reforms across energy, transport, local government and state‑owned enterprises.

He highlighted Operation Vulindlela as the anchor of economic reform. Its first phase was launched in 2020 and produced structural changes in energy, water, telecommunications and visas, including the Electricity Regulation Amendment Act signed into law in August last year and the Economic Regulation of Transport Act signed in June the same year.

The second phase of the operation was launched in May this year and is now targeting local government service delivery and spatial inequality.

Legislation was being prepared to manage coalition dynamics at the municipal level through the Municipal Structures Amendment Bill, while the cabinet had adopted a roadmap for digital transformation of government.

Institutional reforms were also advancing through the National State Enterprise Bill, which will restructure Transnet, accelerate Eskom’s transition to a systems operator, and strengthen the independence of SOE boards.

On poverty alleviation, Mashatile confirmed the extension of the social relief of distress grant until March 2026 and said the National Health Insurance Act would ensure universal access to quality healthcare.

To professionalise the public service, parliament was processing the Public Service Commission Amendment Bill and the Public Service Amendment Bill, while the National Council of Provinces had passed the Public Administration Management Amendment Bill, now awaiting presidential assent.

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