ANC Presiden
By Thabo Mosia
ANC President Cyril Ramaphosa has firmly stated that the African National Congress (ANC) will not bow to pressure from business leaders regarding the future of the Government of National Unity (GNU). Speaking to the media during a visit to Klipspruit West in Soweto today, Ramaphosa addressed concerns about the GNU’s stability amid a budget dispute with the Democratic Alliance (DA). His comments come ahead of a crucial ANC meeting tomorrow, where the coalition’s future will take centre stage, and follow a letter from prominent business figures urging the ANC and DA to resolve their differences.
Ramaphosa Stands Firm on ANC Independence
During his Soweto visit, Ramaphosa responded to a letter from South Africa’s top business leaders, including Adrian Gore of Discovery Ltd. and Duncan Wanblad of Anglo American Plc, addressed to him and DA leader John Steenhuisen. The letter called for the ANC and DA to preserve the GNU, warning that its collapse could derail economic growth and cost jobs. However, Ramaphosa made it clear that the ANC’s decisions remain rooted in the needs of South Africans, not corporate interests.
“A number of business people have written a letter to both myself and John Steen Hayes and the leader of the Democratic Alliance,” Ramaphosa said. “And I can say that business does not dictate what happens in government, does not dictate what happens in the ANC that I lead. We take our own decisions based on our considerations of everything that will advance the interests of our people.”
He acknowledged that business leaders, like all citizens, have the right to voice their opinions. “They are entitled as any citizen is entitled to express their views, their wishes, and their fears,” he added. “But in the end, I want it to be clear that the ANC will not be influenced by what business says. We are principally influenced by what our people say.”
Ramaphosa stressed that the ANC’s priorities—tackling poverty, inequality, and unemployment—come directly from the public. “The pressure that comes from our people is about poverty, is about inequality and unemployment, and those are the issues that influence our decisions,” he said. His remarks signal a resolute stance as the ANC prepares to discuss the GNU’s future at its National Executive Committee (NEC) meeting on 07 April 2025.
GNU Faces Biggest Test Yet
The GNU, formed after the 2024 general elections when no party won an outright majority, brought together the ANC, DA, Inkatha Freedom Party (IFP), Patriotic Alliance (PA), and several smaller parties. Its goal was to address South Africa’s pressing challenges: a stagnant economy, crumbling infrastructure, and an unemployment rate stuck at 32.9%. However, tensions between the ANC and DA over the 2025/26 national budget have pushed the coalition to the brink.
The budget, tabled by Finance Minister Enoch Godongwana in March 2025, includes a 0.5% VAT increase—from 15% to 15.5%—to address a R28 billion shortfall. The ANC argues it’s necessary to fund social grants, healthcare, and infrastructure projects. The DA, however, opposes the hike, calling it a burden on citizens already hit by 5.2% inflation in February 2025. On 02 April 2025, Parliament passed the fiscal framework with 194 votes to 182, despite the DA voting against it alongside opposition parties like the EFF and MK Party. The ANC secured support from ActionSA and other smaller parties, sidelining its GNU partner.
This fallout has raised doubts about the coalition’s survival. The DA has since taken legal action, filing an urgent application in the Western Cape High Court on 03 April to block the VAT increase, claiming the budget process was “unlawful and irregular.” ANC Secretary General Fikile Mbalula warned on 04 April in Diepsloot that the DA’s defiance could end its place in the GNU, saying, “When you’ve decided that you’re not coming to my wedding, you’re no longer my friend.”
Business Leaders Sound the Alarm
South Africa’s business community is growing anxious. The GNU has been a beacon of hope after years of political instability, seen as a pro-business alliance capable of driving reforms. The letter from CEOs like Gore and Wanblad urged Ramaphosa and Steenhuisen to “stay the course” and “compromise,” warning, “We have a great deal to lose.” They pointed to the Johannesburg Stock Exchange (JSE) losing a trillion rand in value when news of the budget clash broke—a stark reminder of the economic stakes.
The fears are real. South Africa’s economy grew by just 0.6% in 2024, far below what’s needed to dent unemployment or boost living standards. A GNU collapse could spook investors, halt job creation, and worsen an already fragile fiscal outlook. Business leaders see the ANC-DA partnership as the country’s best shot at stability, and they’re pushing hard to keep it alive.
DA’s Stance: Power-Sharing or Bust
Meanwhile, DA leader John Steenhuisen doubled down on his party’s position during a campaign stop in Phoenix today for a by-election in eThekwini’s Ward 110. “We entered the GNU to grow the economy and create jobs,” he told supporters, referencing the dismal 0.6% growth rate. “We need to be in the wheelhouse of government where we can determine the economic direction of the country, not just merely swabbing the decks down below.”
Steenhuisen defended the DA’s vote against the budget, arguing the VAT hike would hurt ordinary South Africans. “This VAT hike will make life more expensive for everyone,” he said, proposing cuts to wasteful spending—like overpriced contracts at state-owned enterprises—and stronger tax enforcement instead. He also stood by the court challenge, saying, “The committee process that was followed was unlawful and irregular.”
On the business letter, Steenhuisen acknowledged its weight. “We did receive a letter from business people who are rightly concerned about the future of the country,” he said, citing the JSE’s trillion-rand drop. Yet, he remained cautious about the GNU’s future. “We are committed to the government of national unity,” he said, but only if it’s “a genuine power-sharing relationship.” The DA’s federal executive is still weighing its options, with Steenhuisen leaving the door open for talks with GNU partners like the IFP.
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