DA wants to remain in GNU after ‘constructive’ ANC meeting

The much-anticipated meeting between the ANC and DA, the two biggest political parties in the Government of National Unity, proceeded smoothly on Friday, 25 April, and was concluded in just two hours.   The meeting follows a midnight deal on Wednesday that saw the National Treasury drop the 0.5 percentage point VAT increase and express its desire to reach an out-of-court settlement with the DA over the issue. The DA took the VAT increase to court, which it claimed led to the tax hike being scrapped.Inside source

Daily Maverick understands from an inside source that during Friday’s meeting, the parties discussed a possible new fiscal path. Finance Minister Enoch Godongwana is now expected to table a revised fiscal framework — it has to be tabled in Parliament’s Finance Portfolio Committee and then go to the Appropriations Committee. There was also a brief discussion about the GNU in which the DA is said to have expressed a “sincere” commitment to stay within government. Read more: DA claims win in Treasury VAT U-turn, says ANC ‘deception happens repeatedly’ in GNU DA leader John Steenhuisen was in high spirits after the meeting, describing it as “constructive”and saying: “We have engaged in a number of issues, including the events of the last few weeks, and how we are going to now proceed and process a Budget for South Africa that is credible, costed, and how we can start contributing to providing a stable platform for growth and jobs agenda. It was very constructive and we are very pleased.”DA leader John Steenhuisen told me he is “very pleased” following a meeting with an ANC delegation today. The meeting comes after the National Treasury’s decision to scrap the #VAT increase and talks with DA’s legal team on the potential out-of-court settlement. #Budget2025 https://t.co/GTEVooqZvg

— Nonkululeko Njilo (@Nkulee_Njilo) April 25, 2025

Read more: VAT deal means GNU stays — just in time as new survey shows South Africans are gatvol of the drama The ANC delegation, including Secretary-General Fikile Mbalula and national spokesperson Mahlengi Bhengu-Motsiri, left the talks in song while breaking for lunch, singing “Modimo reboka wena”, loosely translated as “God, we thank you”. Following the talks, Mbalula said “the meeting went well”. Pressed about the GNU, however, he said, “We didn’t discuss the GNU.” He would not go into detail about when the government would be discussed.  Steenhuisen wants ‘maturity and cool heads’

Before the meeting, Steenhuisen said: “I think we have to find a way forward now where we have maturity and cool heads.” He said while the ANC had successfully roped in the smaller parties to pass the fiscal framework on 2 April, giving it the 50%-plus-one majority in the National Assembly, the ANC would find it difficult to govern going forward without the DA as it meant every single MP from a wide range of parties would need to be present and support crucial votes in Parliament. “Everything is going to become a debate like the fiscal framework, which is not going to bring about the stability and credibility that international markets want to see,” he said. ... but confronts GNU resistance

While the DA says it remains committed to the GNU, there is a strong push from parts of the ANC to have the party removed from government due to its opposition to a series of pieces of legislation, including the Expropriation Act, Bela Act and NHI Act, some of which the DA has taken to court.   Deputy President Paul Mashatile is among those at the forefront of calling for a reconfiguration of the GNU to include smaller political parties that supported the fiscal framework.  On Thursday, the ANC met with political parties that supported the fiscal framework — namely the IFP, ActionSA, PAC, Rise Mzansi, BOSA, UDM, Good, Al Jama-ah, Patriotic Alliance, and the National Coloured Congress. They held a media briefing in Sandton, Johannesburg. Several of these parties called for the DA to be sacked from the GNU. ‘Surprised’ the DA part of GNU

Mbalula himself said he was surprised the DA remained a part of the GNU.   IFP national spokesperson Mkhuleko Hlengwa took a direct swipe at the DA’s dual role — being part of the GNU, while voting against the Budget and going to court — saying: “You cannot be in government today and opposition the next day.” The UDM’s Mxolisi Makhubu said: “If you want to be in the GNU, govern. But if you do not want to be in the GNU, the opposition benches are very much open.” With the VAT hike off the table, the pressure is mounting to chart a new fiscal path, and it remains unclear how the R13.5-billion budgetary shortfall over the next year and R75-billion of the medium term will now be addressed. Read more: VAT debacle shines a light on a fragile coalition – and R75bn question remains When asked by Daily Maverick how the Budget gap would be filled, Mbalula said: “We have not arrived at that, it is a second process that we have to embark on.” In a statement on Thursday night, National Treasury said: “By not increasing VAT, estimated revenue will fall short by around R75-billion over the medium term.” DA continues with court case

DA federal council chair Helen Zille announced on the DA website on Saturday 26 April that important legal developments on the VAT matter, required the DA to file a supplementary affidavit with the Western Cape High Court late Friday night. The DA’s supplementary affidavit asks that the court must specifically issue an order to stop the VAT increase, on the basis that the Fiscal Framework was unlawfully adopted in the both the Finance Portfolio Committee and Parliament itself. The respondents (the Minister of Finance Enoch Godongwana and the Speaker) must file their replying affidavits on Saturday. Zille’s announcement noted that: “The supplementary affidavit is necessary because, despite the developments of the past week, the VAT increase will still come into effect on 1 May, unless the court specifically issues an order to prevent this.” Zille explained that only a court order can now stop the VAT increase from coming into force on 1 May because the Fiscal Framework — including the VAT increase — was adopted by the Finance Portfolio Committee on 1 April and then by Parliament on 2 April. The Finance Minister gazetted his intention to introduce a new Bill to Parliament, revising the Fiscal Framework (without the VAT increase). But Zille’s statement said this is not enough to prevent a VAT increase coming into effect on 1 May, because the new Bill will not yet have been adopted by Parliament. DM