DA pledged to hold cabinet talks; ANC reports that talks are “almost done” in South Africa

In reaction to rumors that negotiations were in danger of failing, the Democratic Alliance (DA) of South Africa is dedicated to reaching an agreement over positions in President Cyril Ramaphosa’s cabinet, a party source close to the discussions told Reuters on Friday.

The African National Congress (ANC), led by Ramaphosa, has “almost done” coalition talks, according to a senior member of the negotiation team.

The pro-business DA and the ANC were reportedly at odds over the trade and industry portfolio, to the point where the South African media stated that the two parties’ cooperation was in danger of collapsing.

The DA party source declared, “We are still committed to honest and fair negotiations.”

“It was decided at our Federal Executive meeting yesterday late afternoon/early evening that we will carry on with our negotiations. Therefore, we are not at the stage where we are making ultimatums or drawing lines in the sand at this time.”

According to the News24 website, DA leader John Steenhuisen stated that his party’s goal was to strike “a fair deal that leads to a stable government in which the DA can play a meaningful role”.

The main political parties in the government of national unity (GNU), which was formed when Ramaphosa’s ANC lost its legislative majority for the first time since apartheid’s end in an election last month, are the ANC, Nelson Mandela’s legacy liberation organization, and the white-led Democratic Alliance (DA).

Once unimaginable, Ramaphosa’s election for a second term in office was made possible by the agreement between the ANC and the DA.

In a post on X, ANC Secretary-General Fikile Mbalula attempted to allay concerns over a deadlock.

He wrote, “Nearly done with GNU discussions.” “It will be done as promised.”

The cabinet’s makeup is causing anxiety in the financial markets since it will reveal early on how the ANC plans to distribute power.

The expectation that the ANC and DA would resolve their differences led to a significant strengthening of the rand on Friday.

According to News24 and the Business Day newspaper, Ramaphosa decided to renounce his promise to give the DA the position of trade and industry minister, which is what caused this week’s argument.

This ministry is particularly important because it is in charge of the competition commission, which examines mergers and acquisitions, and the government’s flagship program, which aims to increase the economic involvement of Black South Africans.

The DA claims that the ANC’s Black empowerment programs have not been successful and have mostly benefited a politically connected elite, hence they intend to eliminate parts of them.

The challenges in creating the government, according to Nonkululeko Sibiya, a political analyst enrolled at the University of the Witwatersrand in Johannesburg, demonstrated the ideological divide between the parties.

Although the unity government first brought to mind the democratic transition of 1994, according to Sibiya, “people are fighting for ministerial positions and the real horse-trading has begun, which makes it a very hostile environment.”

Even if the Democratic Alliance leaders were not entirely content with the ministries they were assigned, the political risk consultant Eurasia Group stated that the DA was not likely to pull out of the unity government.

“The DA needs to prove to its base that it will at least attempt to take advantage of an opportunity to make an impact in government,” the analysts at Eurasia Group stated.