Democratic Alliance (DA) leader John Steenhuisen confirmed that the party is working to mend its coalition relationship with the African National Congress (ANC) in the Government of National Unity (GNU).
John Steenhuisen confirms DA-ANC peace talks
Speaking during an interview on Newzroom Afrika, Steenhuisen said a meeting with ANC Secretary-General Fikile Mbalula and his team had taken place a week and a half ago, and a follow-up meeting was scheduled for today.
Steenhuisen stressed that maturity and cool heads are needed to maintain the GNU, warning that trying to run Parliament with a very slim majority would cause instability.
He explained that if the ANC tried to govern without the DA’s support, they would need every ANC Member of Parliament present for every single vote. This would turn every government action — like passing laws, approving budgets, and making appointments — into a chaotic back-and-forth battle.
“I don’t think that you are going to create the credibility and stability that international markets want to see, and given the geopolitical tensions and the geopolitical outlook, the IMF and the World Bank have now revised quite significantly their growth outlooks for both South Africa and the world, what we need now is a stable government with a big majority and that involves the DA,” he said.
According to Steenhuisen, the DA is committed to playing a constructive role, but admitted that both parties could have handled some matters better in recent weeks.
Addressing accusations that the DA tried to “extort” the ANC during the budget talks, Steenhuisen said the DA’s requests were clear and public.
The DA asked for four things: a review of government spending, public-private partnerships on ports, a full review of government regulations, and involvement in Operation Vulindlela through their deputy finance minister.
Steenhuisen firmly denied that the DA demanded the scrapping of laws like the NHI Bill, the BELA Act, or the Expropriation Act in exchange for supporting or opposing the VAT hike.
“We are happy to play our part constructively and we haven’t been angels in this. I’m happy to admit that we have also perhaps could’ve done a few things better and I’ve made that very clear to the ANC,” Steenhuisen clarified.
The VAT issue that almost broke the GNU
The major strain between the ANC and DA came after Finance Minister Enoch Godongwana announced a 0.5% VAT increase in his March 2025 Budget Speech. The VAT hike, set to take effect on 1 May 2025, would have raised the tax from 15% to 15.5%, increasing the price of goods and services at a time when many South Africans are already struggling financially.
The DA and EFF fiercely opposed the VAT increase, saying it would make the cost of living even harder for ordinary people. The DA went to court to challenge the VAT hike, arguing that Godongwana had no constitutional authority to raise taxes without Parliament’s approval.
Meanwhile, Parliament descended into chaos when the ANC pushed the 2025 fiscal framework — the financial plan for the year — through without the DA’s support. The vote narrowly passed with the help of smaller parties like the IFP, PA, and ActionSA. Although only a simple majority was needed, the event showed serious cracks within the GNU.
Faced with court pressure and public outrage, Godongwana and the Treasury eventually announced on Thursday, 24 April 2025 that the VAT hike would be scrapped. The DA claimed this as a major victory, saying their legal and political efforts forced Treasury to retreat.
Although the VAT increase is now off the table, the damage to the GNU’s unity was clear. Steenhuisen’s latest comments suggest the DA is willing to find a way forward with the ANC, but trust needs to be rebuilt.