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South Africa’s ruling African National Congress has signed a landmark power-sharing deal with its former opponents in the Democratic Alliance, paving the way for a new government to be formed under the leadership of the ANC’s Cyril Ramaphosa.
Such a deal was vital to allowing the ANC, which lost its majority for the first time since the end of white minority rule 30 years ago in the May election, to remain in power. Ramaphosa is expected to be reappointed president later on Friday.
John Steenhuisen, leader of the white-led DA — a party that in an earlier incarnation opposed the apartheid government in the whites-only parliament at the time — told reporters the deal was a “historical” moment for the country, which would allow his party to now “co-govern”.
Helen Zille, the DA chair who signed the deal with ANC secretary-general Fikile Mbalula, said: “This gives South Africa a chance of creating a stable democracy and an inclusive economy.”
The agreement, which is also supported by the Zulu-dominated Inkatha Freedom party (IFP) and the small Patriotic Alliance, cheered investors because it excludes Julius Malema’s Economic Freedom Fighters and Jacob Zuma’s Umkhonto weSizwe (MK) — both radical parties that promote nationalisation of banks and important industries.
The South African currency, the rand, surged against the dollar on news of the deal after weakening recently on fears that the ANC would form a coalition with the leftist EFF.
The agreement follows long negotiations between the ANC — the former liberation movement under Nelson Mandela — and opposition parties. The breakthrough came at the eleventh hour on Friday when the parliament had already begun its first sitting since the election.
The nine-page document commits the parties to “co-operate through a voluntary government of national unity”. The DA agreed to support the ANC’s choice of Ramaphosa for president and the ANC’s Thoko Didiza as speaker of parliament. In return, the DA’s candidate will be the deputy speaker.
But the power-sharing deal also paves the way for the DA and other parties to be given cabinet positions and “leadership positions” in some parliamentary committees, of which the IFP will become the “chair of chairs”.
The document stipulates that while the president retains the power to appoint his cabinet, this should be done “in consultation with the leaders of the respective parties”.
In the case of disagreements, the deal says that a “principle of sufficient consensus shall apply”, which is defined as the support of parties holding at least 60 per cent of parliamentary seats. Steenhuisen said the DA would take up posts in the cabinet and parliament “broadly in proportion to our share of seats”. The DA won 21.8 per cent of the vote, compared with the ANC’s 40.2 per cent.
The coalition agreement includes nine high-level priorities for fixing South Africa’s ailing economy, which has struggled to exceed a 1 per cent annual growth rate over the past decade. These range from “rapid, inclusive and sustainable economic growth” to “stabilising local government”.
Velenkosini Hlabisa, the leader of the IFP, told the FT that his party “remains part of the agreement” but the “issue of cabinet positions” will only be discussed at a later date.
Investors said they preferred a deal between the ANC and the pro-market DA, believing it would ensure stable policy and potentially accelerate economic growth.
Ann Bernstein, executive director of the Centre for Development and Enterprise, a Johannesburg-based think-tank, said the deal opened the door for a revival in the country’s economic growth.
“It is hugely significant that parties committed to the rule of law and the constitution have come together to build a government based on those principles, because there were far worse alternatives. After 15 years of stagnation, this is an opportunity for a decisive government to really accelerate growth,” she said.
“The country is in a crisis, but this government of national unity could be a very positive development. The fact that the ANC has unequivocally accepted the results of the election is a very important moment for South Africa’s democracy,” she said.
