The ANC and DA held talks in Johannesburg on Saturday in an effort to resolve a growing dispute over the national budget and ongoing tensions within the Government of National Unity (GNU).
The talks were held amid disagreement over the ANC’s proposed fiscal framework, which includes a 1% increase in value-added tax (VAT) over two years.
The DA has rejected the proposal, calling it unaffordable without broader economic reforms.
The ANC’s negotiating team was led by Secretary General Fikile Mbalula.
In a statement issued shortly after the meeting, ANC national spokesperson Mahlengi Bhengu-Motsiri described the engagement as “constructive” and “a continuation of the ANC’s commitment to dialogue, nation-building, and collective leadership.”
“At the centre of these engagements is the future of our country – South Africa – and the responsibility we all carry to ensure it remains united, stable, and focused on development,” said Bhengu-Motsiri.
She said the ANC remains firmly committed to its mandate of building a non-racial, non-sexist, democratic and prosperous nation, adding that the party would not compromise on its core principles.
“The ANC will not retreat from its historic mission of achieving social and economic justice. We entered the GNU process with the clear intention of accelerating service delivery, creating jobs, and tackling inequality,” said Bhengu-Motsiri.
“These goals are not negotiable.”
The DA, led in the talks by members appointed by its Federal Executive, maintained its opposition to the VAT increase.
DA Federal Council Chairperson Helen Zille said the engagement was respectful and direct, but confirmed that the party stood by its position that tax increases must be tied to structural reforms.
“The DA reiterated our position that a VAT increase is unaffordable in the absence of meaningful reform that will increase economic growth and create jobs,” Zille said.
“We remain committed to the GNU, but cooperation must be based on fiscal responsibility and clear outcomes for the people of South Africa.”
The budget dispute has placed strain on the GNU, a multiparty agreement established after the 2024 general election to ensure political stability and inclusive governance.
Differences between the ANC and DA on economic policy and public finance have become more pronounced in recent months.
Despite the tensions, both parties confirmed that discussions will continue. The ANC said it would engage further with all GNU partners, civil society, and other stakeholders to maintain a “stable, inclusive, and effective government.”
“We owe it to the people of this country — black and white, young and old — to rise above narrow political interests and work together,” Bhengu-Motsiri said. “The interests of South Africans must remain at the heart of all decisions.”
The Treasury is under pressure to finalise the fiscal framework before the parliamentary deadline in May.
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