South Africa's GNU under pressure as VAT hike exposes party divisions
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As the African National Congress (ANC) National Working Committee (NWC) prepares to make a crucial decision on how to respond to opposition from the Democratic Alliance (DA) and other parties regarding the recent VAT hike, the dynamics within the Government of National Unity (GNU) are coming under intense scrutiny.
The rift between these two major parties reveals ideological divides and underscores the complexities of coalition governance in South Africa.
The decision to increase Value Added Tax (VAT) by 0.5% has sparked significant backlash, particularly from the DA, which argued that the hike disproportionately affects the poor and working class.
While this opposition may resonate with many South Africans struggling to make ends meet, analysts suggest that the DA's motivations may be rooted in a broader neoliberal agenda.
Dr Metji Makgoba, an independent analyst and senior lecturer at the University of Limpopo, provides critical insight into the situation, stating, “The emerging differences between the DA and ANC have disappointed capital interests in South Africa, revealing the deep cracks within their fragile neoliberal alliance.”
Makgoba emphasised that both parties appear more focused on appeasing capital interests than on genuinely addressing the needs of South Africa’s most vulnerable citizens.
“While the DA has publicly opposed a VAT increase, its broader agenda is to entrench neoliberal capitalism on a grand scale.
“This raises important questions about the priorities of both parties and their commitment to social justice.”
Makgoba criticised DA leader John Steenhuisen for acting “as a messenger for the market rather than a representative of the people”.
On Sunday, media reports revealed that Steenhuisen mentioned that due to “big business” having reportedly written to his party not to leave the DA, his party would remain in the GNU and continue to work with all the parties involved.
Makgoba further argued that this alignment with corporate interests is alarming, underscoring the extent to which corporate power has infiltrated the state.
Conflicting Political Cultures
According to Makgoba, the political landscape in South Africa is characterised by fundamentally different cultures between the ANC and DA.
He argued that the ANC has historically operated through a patronage-driven system, rewarding loyalty with government positions. However, he said this model has become increasingly ineffective in the current coalition environment.
Makgoba points out that the ANC has been caught off guard by the realisation that its patronage machinery is not able to functions as it once did.
“The ANC cannot simply demand that the DA vacate its positions in government merely because it refuses to conform to ANC directives.”
Looking ahead
As the ANC’s NWC considers its response to the VAT hike opposition in the GNU, the dynamics between the ANC and DA will play a crucial role in shaping the political landscape.
The deepening rifts within their fragile alliance signal a pressing need for both parties to reassess their priorities and consider the broader implications of their actions on the South African population.
Makgoba emphasised that the situation may serve as a wake-up call for political leaders to realign their agendas towards genuine representation and accountability rather than merely catering to capital interests.
thabo.makwakwa@inl.co.za
IOL POLITICS