South Africa’s Government of National Unity, the fragile coalition between the ANC and Democratic Alliance formed after the 2024 elections, is facing its most serious test yet after DA leader John Steenhuisen threatened to withdraw from the partnership over proposed amendments to Black Economic Empowerment legislation.
The standoff centres on the ANC’s push to expand BEE requirements to the technology and digital economy sectors, which the DA argues would stifle innovation and drive away foreign investment at a time when South Africa’s economy is growing at barely 1.2 percent.
President Cyril Ramaphosa called an emergency coalition principals meeting at the Union Buildings on Thursday, seeking to broker a compromise that would keep both parties at the table without alienating their respective electoral bases ahead of local government elections.
Political analysts warn that a GNU collapse would plunge South Africa into a governance crisis, potentially triggering snap elections or forcing the ANC into an even more uncomfortable alliance with the EFF or MK Party.
