The African National Congress (ANC) and the Democratic Alliance (DA) appeared to have crumbled in their coalition discussions, which dealt a blow to the possibility of a government of national unity (GNU), although the rand held steady on Friday.
At Thursday’s close of business, the rand was valued at approximately R18.47 in relation to the US dollar. On Friday morning at 8.30am, the rand was trading at about R18.41 versus the US dollar. Friday morning’s trading values for the ZAR were approximately R19.71 to the Euro and R23.28 to the Pound. Well-placed sources inside the ANC claimed that the coalition deal between the DA and the ANC was close to collapsing.
According to these sources, the agreement was essentially terminated as a result of numerous arguments and public altercations between the two sides. The GNU deal included the signing of a document of intent by other parties, and the ANC and DA together constituted a voter base with around 60% of the vote.
However, the agreement appears to have collapsed because of a dispute over roles and ministries, only one week after Ramaphosa was elected president. The ANC has invited the DA, IFP, PA, FF+, UDM, PAC, Al-Jamah, Rise Mzansi, Good, and the NFP in addition to pushing the DA into the GNU.
