Breakthrough in Sight? ANC and DA Edge Closer to Compromise on Budget Crisis

South Africa’s ongoing budget deadlock may be approaching a resolution as sources within the ANC government suggest that a breakthrough could be possible—if the Democratic Alliance (DA) unveils its counter-proposal on the controversial Expropriation Act.

Tensions between the ANC and DA within the Government of National Unity (GNU) have intensified over the issue of land expropriation without compensation, a policy the ANC sees as essential for redressing historical injustices. In contrast, the DA has consistently pushed for stronger protections of private property rights. This ideological standoff has significantly delayed budget negotiations, placing the GNU under strain.

However, insiders indicate that the ANC is willing to consider the DA’s proposal—provided it is made public. “If the DA puts its counter-proposal on the table, we can work towards a compromise,” said an ANC official close to the talks. “The country cannot afford further instability.”

DA’s Silence Raises Questions

Thus far, the DA has not publicly outlined its alternative approach to land reform, leading to speculation about whether it is prepared to make concessions. Party leader John Steenhuisen has consistently emphasized the importance of securing private property rights, yet some within the DA acknowledge the need for pragmatic solutions to break the budget impasse.

Political analysts suggest that this moment could shape the future of the GNU. “If the DA and ANC manage to resolve this issue, it could establish a foundation for future cooperation,” said political expert Xolani Mthembu. “But if negotiations collapse, it could deepen divisions and shake investor confidence.”

A Crucial Test for the GNU

With the country watching closely, both parties face mounting pressure to find common ground. The coming days could determine whether the GNU remains a functional governing coalition—or if ideological clashes will push it toward collapse.