The African National Congress (ANC) has dismissed claims that the withdrawal of a proposed VAT increase and the suspension of the fiscal framework represent a legal victory for opposition parties, insisting instead that the move was a “political resolution” reached through consultation.
Finance Minister Enoch Godongwana set aside the contentious fiscal measures late last month after negotiations with 10 parliamentary parties. The ANC praised the discussions as “disciplined, focused, and patriotic,” rejecting suggestions that the reversal resulted from pressure by the Democratic Alliance (DA) and Economic Freedom Fighters (EFF), who had challenged the 2025 budget in the Western Cape High Court.
However, political analyst William Gumede argues that the court action highlights deeper dysfunction within the Government of National Unity (GNU). He notes that the ANC, accustomed to majority rule, is struggling to adapt to multi-party decision-making. The GNU’s conflict resolution mechanism, led by Deputy President Paul Mashatile, has reportedly been inactive since November, leaving disputes unresolved.
“The DA’s court challenge reflects frustration with the ANC’s reluctance to compromise,” Gumede said, adding that such legal battles could accelerate a shift in South Africa’s political culture.
The ANC maintains that governance should be driven by “democratic consultation, not courtrooms.” Yet critics argue the party’s failure to transition to inclusive leadership risks further instability in the GNU.
