GNU Report: ANC, DA Fight To Claim SA’s Economic Policy Wins

In September, President Cyril Ramaphosa hosted a working dinner with the leaders of the political parties that are signatories to the Government of National Unity at Genadendal, the president’s official residence in Cape Town. Image: GCIS
As South Africa’s Government of National Unity (GNU) reaches its 100-day milestone, the African National Congress (ANC) and Democratic Alliance (DA) are in a heated contest to claim credit for economic policy wins. With the Medium-Term Budget Policy Statement (MTBPS) just around the corner, both parties are pushing their priorities, hoping to define the future of the country’s economy.
Economic Policy Priorities
The GNU is composed of nine parties, with the ANC and DA serving as key partners alongside the Inkatha Freedom Party (IFP) and Good Party. Their economic agenda is driven by three core goals: boosting economic growth, addressing high unemployment, and increasing investment in South Africa.
The National Treasury has confirmed that the finance minister will present the MTBPS on Wednesday, 30 October 2024. Ahead of this, Cyril Ramaphosa, leader of the ANC, marked the GNU’s first 100 days on Monday, 14 October, outlining the party’s economic agenda. Just days earlier, on 11 October, DA leader John Steenhuisen released his party’s priorities for the medium-term plan in an official statement here.
Ramaphosa, who serves as both the President of South Africa and the head of the GNU’s cabinet, noted that Steenhuisen is also part of the GNU leadership as the Minister of Agriculture. Agriculture, falling within the government’s economic cluster, plays a key role in the GNU’s broader objectives.
Power to the People
During a speech to ANC members in Johannesburg, Ramaphosa emphasized the importance of using the GNU platform to strengthen his party’s position. He framed the GNU as a necessary tool to continue the ANC’s historical commitment to transforming society and addressing unemployment, poverty, and inequality.
Ramaphosa’s reflection on the election results underscored this commitment: “The people … made it clear that they are concerned about unemployment, poverty, and inequality.” His government has already begun rolling out key initiatives, including the Presidential Employment Stimulus, Expanded Public Works Programme, and Presidential Youth Employment intervention.
Government Gains and DA’s Economic Focus
While Ramaphosa is focused on transformation, the DA’s Steenhuisen is steering his party toward practical economic reforms. His medium-term plan emphasizes five key priorities:
Reducing the debt-to-GDP ratio to below 70%;
Driving investment, growth, and job creation through phase two of Operation Vulindlela;
Expanding access to affordable and reliable broadband;
Reforming Home Affairs and immigration; and
Restoring focus on Infrastructure South Africa.
Steenhuisen also stressed the DA’s non-negotiables: no more state-owned enterprise bailouts, scrapping clauses 4 and 5 of the Basic Education Laws Act, and rejecting the National Health Insurance scheme.
Key Economic Cluster
With major portfolios like finance, agriculture, trade, and international relations in the economic cluster, the ANC and DA dominate the GNU’s economic agenda. The ANC holds the majority of the ministries, while the DA has a notable presence.
A critical issue in this cluster is South Africa’s ongoing dispute with the European Union at the World Trade Organisation (WTO) over stringent requirements for citrus imports. South Africa is the world’s second-largest exporter of citrus, with 33% of its produce destined for European markets.
External Pressures and Opportunities
South Africa is also lobbying for the renewal of the Africa Growth and Opportunity Act (AGOA), which is set to expire in 14 months. South Africa, along with other African trade ministers, has urged the US government to eliminate annual reviews of the trade act.
In December 2024, South Africa will take over the G20 presidency and is scheduled to host the G20 Summit in 2025, marking a significant opportunity to bolster its global economic standing.
Investors Eyeing the GNU
Global investors are closely monitoring the GNU’s progress. On 8 October, UBS hosted the 27th SA Financial Services Conference in Cape Town under the theme, “Capitalising on the GNU Opportunity.” In its presentation, Nedbank highlighted the GNU’s potential to strengthen the local currency and address deep-rooted issues like unemployment, inequality, and corruption.
As the GNU approaches the pivotal Medium-Term Budget Policy Statement, the ANC and DA are locked in a battle for economic dominance. Both parties have laid out their strategies, but the true test lies in the months ahead, where action will speak louder than political posturing. Will the GNU’s bold initiatives propel South Africa forward, or will internal conflicts stifle its progress?