ANC and DA engage in constructive talks to resolve budget impasse

The African National Congress (ANC) and Democratic Alliance (DA) held high-stakes negotiations this weekend to address South Africa’s fiscal deadlock and strengthen cooperation within the Government of National Unity (GNU).

The discussions, led by ANC Secretary General Fikile Mbalula and DA Federal Council Chairperson Helen Zille, mark a critical effort to align competing visions for economic reform and social transformation.

ANC National Spokesperson Mahlangu Bhengu-Motsiri emphasised the party’s resolve to prioritise national interests, stating, “South Africa must come first—unity and progress cannot be sacrificed at the altar of political expediency.”

The ANC reaffirmed its mandate to advance a non-racial, equitable society, stressing that core objectives—job creation, service delivery acceleration, and inequality reduction—remain non-negotiable.

Bhengu-Motsiri framed the GNU as a vehicle for “rebuilding trust and consensus,” urging all stakeholders to transcend partisan divides.

“We are custodians of a historic project to transform this nation,” she said, underscoring ANC refusal to compromise on principles of social justice.

The DA, meanwhile, reiterated its opposition to the GNU’s proposed 1% VAT hike over two years, calling it unsustainable without structural economic reforms.

“A tax increase cannot be a substitute for policies that stimulate growth,” Zille asserted, highlighting the party’s insistence on private-sector-driven job creation and fiscal discipline.

Despite tensions, both sides described Saturday’s talks as respectful and solution-oriented.

Zille acknowledged the ANC’s “openness to dialogue” but warned that cooperation hinges on tangible progress: “The GNU must prove it can deliver results, not just rhetoric.”

The budget dispute has exposed deeper ideological rifts, with the ANC advocating state-led development and the DA pushing market-oriented reforms.

Analysts suggest the deadlock risks destabilizing the GNU, which was formed to ensure political stability after the 2024 elections.

As negotiations resume this week, citizens await signs of compromise.

With unemployment at 34% and public services strained, the stakes extend beyond fiscal policy—to the very credibility of South Africa’s multiparty experiment.