South Africa Faces Coalition Crisis as Budget Sparks Tensions

Tue Nov 18 2025 03:29:48 GMT+0200 (Eastern European Standard Time)

Amid deep divides, South Africa's coalition government grapples with the implications of the newly tabled budget, highlighting significant challenges ahead.

South Africa’s coalition government finds itself at a critical juncture following the presentation of the national budget, which has ignited fierce opposition from key coalition partners, casting doubt on its passage in parliament.

In a significant political development, South Africa's coalition government is in turmoil as Finance Minister Enoch Godongwana's recently presented budget faced widespread rejection from crucial partners just days after its unveiling. Analysts emphasize that this marks a pivotal moment as the governing African National Congress (ANC) grapples with losing its parliamentary majority and attempts to navigate complex relationships with nine other coalitional parties, chiefly the Democratic Alliance (DA).

Previously delayed amidst backlash, the budget proposal suggests an increase in value-added tax (VAT), a move that could exacerbate the burden on South Africans already struggling with high living costs. Godongwana, addressing the nation, framed his budget as a "bold and pragmatic" response to pressing fiscal challenges but altered the proposed VAT increase to a more palatable increment from 15% to 16%, aiming to mitigate opposition.

Despite his attempts to placate coalition partners, the DA firmly opposes any tax increases without comprehensive reforms aimed at economic growth. The failed collaboration has been detrimental to President Cyril Ramaphosa's reputation as a consensus-builder, with only minor parties supporting the plan. This budget tussle underscores growing fissures within the coalition, highlighted by disputes over contentious initiatives like the controversial land reform law.

Critically, major opposition parties including the Economic Freedom Fighters (EFF) have voiced strong dissent, denouncing the budget's implications for the poorest citizens. Leading analysts assert that the deadlock has placed South Africa in "uncharted waters," making the upcoming parliamentary decisions crucial.

As the budget's fate hangs in the balance, observers question the steadiness of Godongwana's leadership amid rising scrutiny and the risk of losing governmental cohesion if the budget is not passed. The coming weeks will prove pivotal for the ANC and its coalition partners, as they must navigate an increasingly complicated political landscape.