ANC promises stability amid coalition talks after losing majority
South African Finance Minister Enoch Godongwana stated that the African National Congress (ANC) will avoid "reckless" coalition decisions after losing its parliamentary majority. Despite this, Godongwana assured policy stability as the ANC remains the largest party. As coalition talks intensify, the ANC prioritizes national interests and economic stability, with discussions open to various parties, excluding demands for President Ramaphosa's resignation. Investors favour a coalition with the centrist Democratic Alliance over leftist parties.
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By S'thembile Cele
South African Finance Minister Enoch Godongwana said the African National Congress won't be "reckless" in choosing a coalition partner after losing its parliamentary majority.
The ANC will also be able to ensure policy continuity as it remains the largest party in the National Assembly, Godongwana said in an interview Sunday. He is a member of the ANC's National Executive Committee.
Horse trading between political parties has begun with lawmakers facing a 14-day deadline from Monday to form a government after an election on May 29 failed to produce an outright winner. The ANC obtained 40% of the seats in parliament, leaving it without a majority for the first time since it came to power three decades ago.
"We will not make reckless decisions," Godongwana said. "The ANC remains the biggest party and economic policy will remain ours and so there is no risk to stability or threat to investor confidence."
The ANC is open to discussions with any rival party, including the uMkhonto weSizwe Party led by former President Jacob Zuma, ANC Secretary-General Fikile Mbalula told reporters on Sunday. It won't entertain a demand by the MKP, which garnered 58 seats in parliament, that President Cyril Ramaphosa step down, he said.
Godongwana agreed with that stance. Some parties have "ruled themselves out" of working with the ANC because of their policy positions and demands, he said, responding to a question on the possibility of teaming up with the MKP.
Investors favor a coalition agreement with the main opposition Democratic Alliance, a centrist party that has 87 seats in parliament, as opposed to teaming up with the MKP or the leftist Economic Freedom Fighters, the fourth-largest party.
"The deals struck now must underpin policy continuity," Busi Mavuso, the head of lobby group Business Leadership South Africa, said in a statement on Monday. "They must enable the government to stick to the fiscal prudence that we have managed to return to governance over the last few years, and they must maintain the reform momentum needed to get the economy growing"
The ANC's top leaders are scheduled to meet on Tuesday to discuss coalition options. The party will prioritize what is in the best interests of the country, Godongwana said.
Some members of the ANC have touted the idea of a minority government, according to the party's head of elections, Mdumiseni Ntuli.
"The ANC is cognizant of the fact that it is no longer in a position where it can monopolize everything, even with our majority," he said in an interview. "I think the ANC will have to think much more broader and understand that on its own, it may not be able to sustain the stability we need in the country."
The other more likely option is a "confidence and supply" agreement, which would protect the ANC from attacks potentially from the MKP and other parties left out of the pact. Because it would not be a formal coalition, it would also allow parties to maintain a level of independence and identity that their voters can still relate to.
Godongwana ruled out the possibility of the ANC sitting in the opposition benches, saying the party would form a "responsible" government within two weeks.
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