Fractures in South Africa's Coalition Government: ANC vs DA

Tensions between South Africa's ANC and DA threaten the country's coalition government. Recent disagreements over the budget and policy directions have left investors wary. Despite differences, both parties express commitment to coalition rule and continue efforts to resolve disputes, notably over tax policies.

South Africa's political landscape is facing increasing turbulence as the ongoing schism between the African National Congress (ANC) and the Democratic Alliance (DA) threatens to destabilize the coalition government. Despite assurances from both parties of continued commitment to collective governance, recent budgetary disagreements have highlighted a growing rift.

Both parties held meetings with top officials, seeking to move beyond the contentious budget vote that unveiled economic policy-making disagreements. The DA, demanding more influence especially after setbacks in previous policy negotiations, was met by the ANC's firm stance and alliance with a smaller party to pass vital legislation.

Post-vote reactions included statements emphasizing perseverance in coalition talks. While ANC Secretary General Fikile Mbalula criticized the DA for opposing key legislative initiatives, he did not suggest forcing the DA out of government, focusing instead on resolving disagreements through dialogue. On the economic front, the possibility of the DA's withdrawal has already impacted the rand significantly.

(With inputs from agencies.)