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South Africa’s African National Congress called for a “reset” in its relationship with its main coalition partner after weeks of contentious debate over the country’s budget.
The move comes as Africa’s most industrialized economy tries to allay investor and business concerns over a potential collapse of the government of national unity (GNU) formed less than a year ago.
ANC Secretary‑General Fikile Mbalula told journalists on Tuesday that the party was not planning to expel the Democratic Alliance from the coalition. Mbalula said the ANC — which last year lost its parliamentary majority for the first time since the end of apartheid — has resolved to “reset the button to engage with all political parties in the GNU and those that are not in the GNU to address the impasse with regards to the budget.” Yet the ANC-DA partnership appears to be on borrowed time, after the DA voted against the budget this month, following protracted wrangling.
On Tuesday Morgan Stanley said risks to South Africa’s growth “skewed to the downside” because of political uncertainty.
