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3w ago

South Africa's Coalition Government Faces Collapse After Budget Vote Fallout

The ANC narrowly passed its contentious budget with ActionSA's support, as the DA and EFF prepare legal challenges over procedural concerns.

Members of parliament stand in a makeshift dome after South Africa's Finance Minister Enoch Godongwana's 2025 budget speech was postponed, in Cape Town, South Africa, February 19, 2025. REUTERS/Esa Alexander/File Photo
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A woman walks past a logo of The African National Congress, at Luthuli House, the ANC headquarters in Johannesburg, South Africa, June 5, 2024. REUTERS/Siphiwe Sibeko

Overview

  • The Democratic Alliance (DA) voted against the ANC-led coalition's budget on April 2, 2025, citing its disproportionate impact on the poor and procedural flaws.
  • ActionSA, a party outside the coalition, provided the crucial votes needed to narrowly pass the budget, highlighting fractures within the government.
  • The Economic Freedom Fighters (EFF) and DA announced plans to challenge the budget's adoption in court, alleging procedural defects in its approval process.
  • Investor confidence has been shaken, with the rand dropping 2% following the vote, reflecting concerns over political instability and governance.
  • The budget includes a two-stage VAT increase aimed at raising over 15 billion rand annually for social programs, but it has faced criticism for burdening South Africa's poor majority.