South African President Cyril Ramaphosa announced on Friday that Parliament will reconvene for its next term on July 18. However, the formation of a new Cabinet remains a work in progress, with ongoing negotiations between the African National Congress (ANC) and its coalition partners. The talks, which have been ongoing for two weeks, have encountered significant hurdles due to disagreements between the ANC and the Democratic Alliance (DA) regarding the allocation of ministerial positions and portfolios. Leaked correspondence between the two parties has revealed the tensions, with Ramaphosa accusing the DA of shifting its demands from six Cabinet positions to eight, potentially jeopardizing the coalition agreement. The DA, on the other hand, claims the ANC has backtracked on a promise to allow them control over the crucial Department of Trade and Industry.
Despite these disagreements, both Ramaphosa and DA leader John Steenhuisen have held face-to-face meetings in recent days, aiming to resolve the impasse. Analysts have warned that a coalition between the ANC and the DA, two parties with starkly different ideologies, would be a complex undertaking. The ANC, which has been in power for over two decades, lost its parliamentary majority in the May 29 elections, forcing it to share power for the first time. Despite the challenges, the ANC remains committed to the coalition, with Secretary-General Fikile Mbalula assuring the public that the final agreement is nearing completion.
The potential formation of a coalition government has already had a positive impact on South Africa’s economy, with the currency and investor confidence strengthening following the signing of a preliminary agreement on June 14. This deal also paved the way for Ramaphosa’s reelection as president with cross-party support. Both the ANC and the DA have emphasized the importance of this coalition as a new era of political unity that will help address South Africa’s deep-seated socioeconomic problems. However, the delay in announcing a Cabinet and forming a fully functional government has eroded some of the initial optimism surrounding this historic agreement.
