Ramaphosa says ideological differences will not derail GNU

Ideological differences among the 10-member government of national unity (GNU) will not be an impediment to the sustainability of the newly formed coalition government, whose key priorities include job creation, poverty reduction and building a capable state, President Cyril Ramaphosa said.

The GNU has marked 100 days since new ministers were sworn in after the May elections, when the ANC lost its parliamentary majority.

Reflecting on the GNU during an address to ANC supporters, the president acknowledged the public’s dissatisfaction with the economy, unemployment, poverty and inequality, as reflected in the 2024 elections.

He said that despite the setback, the ANC formed the GNU to work with other parties. The GNU’s first 100 days have seen improved confidence among investors with a focus on economic growth to drive job creation and industrialisation.

“We went into the GNU knowing full well that we have significant ideological and political differences with some of the parties.

“Today we are in the GNU with nine other parties, and some of those parties we have major ideological differences with. We knew that there were fundamental issues on which we differed and that were bound to bring about tensions and strains in the GNU,” said Ramaphosa.

The GNU has caused a rift between the ANC and its alliance partners, with the SA Communist Party accusing the ANC of compromising ideological principles by forming a coalition that includes the DA and the Freedom Front Plus, previously its fiercest rivals.

The coalition government has, however, received positive feedback from market watchers, which have pointed to the progress made in addressing economic and social challenges, such as resolving the energy crisis and logistics sector reforms, which had contributed to this improved sentiment.

“We have already seen the surveys. There are many surveys that are being published that show that the majority of South Africans have embraced the government of national unity, the majority of South Africans have accepted the notion of the GNU,” Ramaphosa said.

One of the main tailwinds for SA’s economy over the past four months has been an improvement in the energy availability factor, which has resulted in Eskom suspending load-shedding for 200 days.

“In September, the Bureau of Economic Research and Rand Merchant Bank published their first Business Confidence Index since the formation of the new administration. It points to ‘cautious optimism’ about improving business conditions in key economic sectors. It says that improved electricity supply and political certainty after the elections have likely contributed to this improved business confidence,” Ramaphosa said in his weekly newsletter published on Monday.

“Improved investment sentiment will benefit our country’s fiscus. A stronger economic outlook will improve SA’s credit rating, which in turn will facilitate greater access to global capital markets and lower our borrowing costs. When we spend less money on debt servicing costs, the government has more space to increase its expenditure on building public infrastructure and providing education, healthcare, basic services and social support.”

Update: October 14 2024
This story has been updated with new information. 

maekot@businesslive.co.za