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EFF Engages ANC in Budget Talks Amid Fiscal Challenges and Political Tensions

March 21, 2025
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EFF Engages ANC in Budget Talks Amid Fiscal Challenges and Political Tensions
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In a significant development in South Africa’s political arena, Economic Freedom Fighters (EFF) Secretary-General Marshall Dlamini revealed that the party has held discussions with the African National Congress (ANC) during a chief whip’s forum to explore the possibility of supporting the national budget. This dialogue comes at a critical time as the country grapples with fiscal challenges and shifting political dynamics.

The ANC’s parliamentary caucus has expressed confidence that Finance Minister Enoch Godongwana will present a balanced budget that reflects South Africa’s economic realities. However, internal disagreements have emerged, particularly over a proposed 2% increase in value-added tax (VAT). The Democratic Alliance (DA), a key coalition partner, has strongly opposed the VAT hike, warning that it could further strain the economy. This disagreement led to the unprecedented postponement of the annual budget speech, underscoring the complexities within the governing coalition.

The EFF’s engagement with the ANC marks a potential shift in parliamentary alliances. Historically positioned as a radical opposition party, the EFF’s willingness to collaborate with the ANC could play a pivotal role in securing the budget’s approval. Such a partnership may also influence policy directions, particularly in areas where the EFF’s platform aligns with the ANC’s goals.

As South Africa awaits the rescheduled budget presentation, these inter-party negotiations highlight the importance of consensus-building in addressing the country’s economic challenges. The outcome of these discussions is expected to have far-reaching implications for fiscal policy and the nation’s economic trajectory.

For further insights into the EFF’s parliamentary strategies and perspectives, watch an interview with EFF Chief Whip Nontando Nolutshungu, conducted by 702’s Clement Manyathela.

The evolving political landscape underscores the need for collaboration and compromise as South Africa navigates its fiscal and economic challenges. The EFF’s involvement in budget talks signals a potential realignment of political forces, with significant consequences for governance and policy-making in the coming months.

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