South Africa’s Coalition Government on Brink of Collapse Amid Budget Showdown
South Africa’s coalition government, formed less than a year ago after the ANC lost its parliamentary majority for the first time since 1994, is facing a critical moment as sharp policy divisions threaten to tear it apart.
The Democratic Alliance (DA), the second-largest party in the coalition, voted against a key component of the national budget this week—sparking political turmoil and prompting legal action. The DA opposed the government’s proposed VAT hike, arguing it would worsen poverty and burden struggling households.
Despite the ANC rallying smaller parties to pass the fiscal framework by 194 votes to 182, the DA has since filed a court challenge, claiming the vote was “procedurally flawed.” The party is now reviewing its role in the Government of National Unity (GNU).
Rising Tensions and Tough Talk
DA federal chair Helen Zille accused the ANC of refusing to share power and said the party would weigh its next steps carefully. “Being in a coalition requires compromise. The ANC can’t expect to have it all,” she said.
ANC parliamentary chief whip Mdumiseni Ntuli fired back, calling the DA’s defiance a “complete betrayal.” President Cyril Ramaphosa’s spokesperson echoed the frustration: “You can’t be part of a government whose budget you opposed.”
The rift is significant because South Africa’s coalition was seen as a political reset after years of ANC dominance. Business leaders initially welcomed the power-sharing pact, hoping it would stabilize the economy and deliver reforms.
Unlikely Voting Allies
The DA found itself aligned with its ideological opposites—the populist Economic Freedom Fighters (EFF) and former President Jacob Zuma’s uMkhonto weSizwe (MK) party—against the VAT rise. All three parties say the tax would disproportionately hurt the poor.
DA leader John Steenhuisen slammed the ANC as “out of touch,” suggesting leaders were unaware of the rising cost of living because they don’t “buy their own groceries.”
Yet, the ANC argued the 1% VAT increase over two years is vital to fund health and education. ActionSA, a smaller party that helped secure the ANC’s budget win, claims it negotiated to have the VAT plan scrapped in favor of other revenue streams.
Growing Economic Pressure
With South Africa’s unemployment at over 30% and fresh US tariffs now targeting South African imports at 30%, the coalition crisis comes at a time of economic fragility. The ANC’s controversial land reform law has also drawn ire from the US, which recently cut aid and imposed penalties.
Ramaphosa’s office condemned the tariffs as “punitive,” warning they threaten the country’s trade and prosperity.
What’s Next?
Analysts say the DA must now decide whether this is the final straw or merely another chapter in a tense partnership. Wits University’s Prof William Gumede believes the party will wait for the court outcome before walking away.
As South Africa’s political future hangs in the balance, citizens are left to wonder: Can the ruling parties reconcile their differences for the good of the country—or is another political realignment looming?
