South Africa’s coalition government hits early hurdle

Negotiations to form a South African cabinet have hit a wall amid disagreements between the African National Congress and the largest opposition party, the Democratic Alliance, over how to share power.

Cyril Ramaphosa, who was inaugurated as president for a second term 10 days ago, was expected to announce a cabinet on Sunday, but haggling over positions and a dispute over how the national unity government should be run have stalled the process.

DA chair Helen Zille said her party should receive 12 of the 30 cabinet positions available, based on its vote share in last month’s watershed election when the ANC lost its majority for the first time since the end of apartheid. In a letter sent to ANC secretary-general Fikile Mbalula, she also pushed for DA lawmakers to become deputy president, “as is standard practice” in coalition governments, and deputy finance minister.

On Monday, the ANC described these demands as “outlandish and outrageous”, while senior party officials have accused the DA of overplaying its hand given that it won only 21.8 per cent of the vote compared with the ANC’s 40.2 per cent. The ANC said cabinet positions were Ramaphosa’s prerogative and the unity government could not “be held to ransom” by a single party.

Ramaphosa met DA leader John Steenhuisen on Monday in an effort to reach a compromise. People close to the talks said the ANC had increased its offer to six cabinet positions, while the DA had lowered its demand to eight. The pro-business DA’s demands included high-profile ministries including minerals and energy, trade and industry, higher education, justice, and international relations.

Peter Attard Montalto, managing director of consultancy Krutham, said the stand-off in recent days had raised the possibility of the DA pulling out entirely, but he thought the unity government would remain intact.

“The DA has been playing hardball in the balance of number and seniority of slots in cabinet it wants, while the ANC has also been unreasonable in not wanting to give up cabinet seats proportionately,” he said, adding that “a compromise would not be an awful outcome”.

South Africa’s currency and equity markets lost ground as the reality of the horse-trading hit home for investors. The rand, which climbed more than 1 per cent to R17.87 to the dollar last week, slipped back to R18.16 on Monday. Attard Montalto said “the market has perhaps got ahead of itself” in expecting the DA to receive so many cabinet positions.

Negotiations were not deadlocked, Zille told the Financial Times on Monday. “There are negotiations and, in most countries with stable coalitions, this can go on for many months. It takes time to reach a sensible compromise,” she said.

Zille refused to say which ministries the DA had asked for. Both parties signed a statement of intent stipulating that cabinet appointments would be made “in consultation with the leaders of the respective parties” before Ramaphosa was elected president by parliament.

Since then, the unity government has expanded to 10 parties, including the Zulu-dominated Inkatha Freedom party and Gayton McKenzie’s Patriotic Alliance, many of which also expect cabinet slots.

McKenzie told the FT that the DA had overstepped “by far” in its demands. “Who the hell does Zille think she is,” he said. “The DA can’t read the political climate and has been trying to humiliate the ANC from the beginning.”

McKenzie said his PA party was prepared to moderate its demands, saying: “You can’t be arrogant. You must put the needs of the country first.”

Attard Montalto said the degree of the DA’s public sparring had not helped because Ramaphosa was under pressure from ANC hardliners not to cede critical cabinet seats.

“A longer view is needed since agreeing on cabinet positions is only the start,” he said.

Frans Cronje, a political analyst, said: “It’s critical that the two party leaders, Ramaphosa and Steenhuisen, get their respective executive committees to be reasonable and see the long-term strategic advantage of working together.”