The future of South Africa’s Government of National Unity (GNU) could be decided this week as the national budget faces opposition from one of its key partners.
John Steenhuisen turns to Ramaphosa to ‘save’ the Budget
Democratic Alliance (DA) leader John Steenhuisen said the DA will vote against the budget unless the African National Congress (ANC) agrees to a signed deal on how the economy will be managed.
Steenhuisen revealed on Monday that the ANC had refused to finalise a written agreement that included reforms on growth and government spending.
He warned that the GNU could collapse if no deal is signed.
Following this, a planned DA media briefing was briefly cancelled—but then quickly reinstated, fuelling speculation about behind-the-scenes talks.
According to reports, President Cyril Ramaphosa met with Steenhuisen on Tuesday morning in an attempt to reach an agreement before the budget vote, which is expected to take place on Wednesday.
DA insiders claim the president supports a deal but that there are divisions within the ANC.
Some ANC leaders, including Mdumiseni Ntuli, have said the DA’s demands are too much and that the ANC is now speaking to smaller parties like ActionSA, which it says have been more “reasonable.”
Reports suggest that a proposal supported by ActionSA will be tabled at the finance committee meeting, potentially giving the ANC another path to get the budget approved.
The machinations of the GNU at play: Here’s what you must know
The GNU—made up of several political parties including the ANC, DA, and IFP—is under strain.
The key issue is the budget, especially the proposed 0.5% increase in VAT. While the DA has opposed this without a formal agreement, the IFP has confirmed its support, saying the budget includes relief measures like increased social grants and basic goods that will remain tax-free.
At the centre of the deadlock is the DA’s demand for more control over how money is spent and how key sectors like ports and rail are managed.
They’ve also pushed back against the Expropriation Act, which allows the state to take land under certain conditions. Finance Minister Enoch Godongwana had earlier said the DA had agreed to the VAT increase, but only if the Expropriation Act was removed—something the ANC has rejected.
While some reports claim that a deal between the ANC and DA is close, Steenhuisen’s public statement and the ANC’s insistence on not being pressured into concessions suggest otherwise.
ANC Secretary-General Fikile Mbalula has confirmed that negotiations are still ongoing, but has not provided further details.
The stakes are high. If the DA and ANC don’t reach a compromise, the GNU could unravel. That would impact more than just politics—it could affect stability, service delivery, and the country’s economic direction.
With hours left before the budget vote, and with no signed agreement in place, it remains uncertain whether the GNU can hold together.