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African National Congress (ANC) members of parliament react after South African lawmakers passed the budget's fiscal framework in Cape Town, South Africa, April 2, 2025.
Budget clash puts South African government on brink of collapse
The second largest party in South Africa’s coalition, the business-friendly Democratic Alliance, launched a legal challenge on Thursday to block a 0.5% VAT increase in the country’s new budget, raising concerns that the fragile government could collapse.
The background: Absent the support of their coalition partner, the ruling African National Congress on Wednesday relied instead on support from smaller parties to narrowly pass a budget framework.
The ANC and the center-right DA, historical rivals, agreed to work together after last year’s elections, when the ANC failed to win a majority for the first time since it entered government in 1994, after the fall of apartheid.
Your call, DA. The lawsuit is unlikely to derail the budget, so the party must decide if it wants to stay in government despite its misgivings. Without the DA, the ANC would hold exactly half of the legislature’s 400 seats. Investors view the DA as a key source of market-friendly policy discipline.
It’s a dilemma. Experts say that if the DA bolts, it will lose the chance to shape key legislation, such as the controversial Expropriation Act, a land reform bill, but staying would mean facing political humiliation after they voted against the budget.
Members of the armed wing of Nelson Mandela's African National Congress line up waiting to vote in a military base north of Pretoria, on April 26, 1994.
South Africa still struggles with inequality 30 years after apartheid
Thirty years ago this weekend, South Africa ushered in its first democratic government.
On April 27, 1994, Black South Africans went to the polls, marking an end to years of white minority rule and the institutionalized racial segregation known as apartheid.
Freedom Day, as that day is commemorated, gave rise to South Africa’s first Black president, Nelson Mandela. The internal protests and violence over apartheid, as well as international sanctions, were relegated to the annals of history, ushering in a new era of promise for racial equality and prosperity.
But three decades later, the “rainbow nation” still faces many challenges, with racial equality and economic development remaining out of reach.
The country struggles with some of the highest inequality levels of any nation worldwide, says Ziyanda Stuurman, a senior analyst with Eurasia Group. “Many young people, in particular, are unemployed and feel despondent about finding work,” she says.
Three main factors have led to persistent inequality. First, South Africa’s unemployment rate is a whopping 32% – the highest globally. Those with secure jobs tend to be non-unionized and, as a result, see lower earnings. And, finally, workers who do well tend to make very high salaries compared to the lower-wage earners, bolstering the poverty gap.
“Due to a lack of economic opportunities and financial inclusion for the majority of Black South Africans,” says Stuurman, “many have not been able to make the most of the expanded political freedoms and opportunities in democratic-era South Africa.”
Since 1994, Mandela’s African National Congress party has been at the helm, but the lack of economic growth and rising inequality may be driving a change of heart among the electorate.
Next month, on May 29, South Africa heads to the polls again for its seventh general election since the end of apartheid. For the first time, polls suggest that the ANC may fail to win 50% of the national vote – which could mean tricky coalition talks or even its exit from power.
Stay tuned to GZERO. We’ll talk more with Stuurman in the coming weeks to gain insights about South Africa’s big election.
South Africa's Unfulfilled Promises
GZERO World usually takes on big global topics that impact multiple countries. This show is different, however, in that it’ll focus on just one: South Africa -- a country that once captured world attention when it transitioned from apartheid to modern democracy. But the nation’s long walk to freedom is falling short of what was promised.
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