World Economic Journal Issue 43 September 2024 | Page 94

[ NEWS ]

WILL SOUTH AFRICA ’ S NEW COALITION GOVERNMENT BREAK THE MOULD ?

By Patrick Mzungu
Patrick Mzungu is a writer and author based in South Africa . He covers entrepreneurship , business , finance , marketing and world economy .

On May 29 , 2024 , South Africa ’ s general elections produced a little anticipated outcome , with no single political party winning the parliamentary majority . Receiving only 40.2 % of the votes , the African National Congress ( ANC )— which had ruled the nation non-stop since the end of apartheid 30 years ago — could no longer keep hold of its power .

The voters had spoken . To address their demand for political change , the ANC agreed with the numerous opposition parties to form a ‘ Government of National Unity ’ ( GNU ), with President Cyril Ramaphosa providing them with cabinet positions .
ANC FAILURES
For years if not decades , the ANC had been criticised for failing to address various socioeconomic challenges . Corruption , unemployment and electricity supply issues were among people ’ s top concerns .
Individuals connected to powerful politicians had been involved in corruption , eroding public trust in the government . In one of the largest scandals of the previous decade , the Gupta brothers were accused of pursuing a project of “ state capture ” amounting to billions of US dollars , in collaboration with former president Jacob Zuma , who ultimately resigned . The Zondo Commission Report identified deliberate acts of state resources looting , but no action was taken . Corruption also flourished at the local level , affecting the implementation of South African municipalities ’ policies .
Policies also failed to maintain economic growth at a sufficient level , with GDP decelerating in real terms from 1.9 % in 2022 to 0.6 % in 2023 . This weak record came as a result of power shortages , transport sector constraints , and lower prices for gold and platinum group metals on global markets .
As a result , jobless figures stood around 33 % ( 46 % for the youth ) as of Q1 2024 , placing South Africa among the countries with the highest rate of unemployment in the world .
The country also boasts one of the highest levels of income inequality . In 2022 , the World Bank noted that 80.6 % of its financial assets were owned by the top 10 % of South Africans .
Poverty and wealth disparity are among the key factors contributing to high crime rates , where South Africa also features prominently in international rankings .
IDEOLOGICAL OPPOSITES AND POLITICAL DEXTERITY
Featuring 75 members from 11 parties , the new cabinet is the largest since the advent of democracy . This entirely new political configuration has necessitated reconciling very different ideologies and policy orientations .
The ANC ’ s platform focuses on economic justice , social justice and anti-corruption , while the DA advocates for market-friendly policies and good governance . The Inkatha Freedom Party ( IFP ) focuses on cultural preservation , social conservatism and rural development while Patriotic Alliance , a newer political party , commits to fight
PHOTO : PER-ANDERS PETTERSSON / GETTY IMAGES
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WEJ | September 2024