No single party won more than 50% of the seats in Parliament’s National Assembly – i.e. an outright majority. This necessitated the formation of a coalition government, because cooperation between political parties became necessary to pass bills, budgets (etc.) and govern effectively. The same was applicable to several provinces where no party won an outright majority of seats in that province’s legislature.

Coalitions, thus, became essential for national stability and functional governance both nationally and in the certain provinces. This shift away from a one-party dominant system marks a pivotal moment in South Africa’s democratic development, introducing both opportunities and challenges in governance.

At a national level, a Government of National Unity (“GNU”) was formed between the ANC, Democratic Alliance (“DA”) and Inkatha Freedom Party (“IFP”). Later, other, smaller, parties joined, bringing the total to ten political parties – some with vastly different ideologies – that all agreed to a founding statement of intent. Its formation was instrumental in averting a potential political crisis and paved a constructive way forward. The fact that the GNU includes parties that were traditionally seen as being ideological opponents is a significant shift in South Africa’s political landscape.

The GNU faced the daunting task in 2024 of addressing deep-seated issues such as a stagnant economy, soaring unemployment and inequality and high crime levels, while learning to work together across ideological lines and maintaining political stability. Its stated key priorities are driving inclusive growth and job creation; reducing poverty and tackling the high cost of living; and building a capable, ethical and developmental state.

The GNU holds more than two-thirds of the seats in Parliament’s National Assembly – i.e. it holds a supermajority. This makes it possible for the GNU to implement significant changes – even changing the Constitution (except section 1, which contains the founding values of South Africa). (See section 74 of the Constitution).

Despite the numerous internal tensions faced by the GNU during 2024, particularly with regards to the implementation of the National Health Insurance Act, 2023, (the “NHI”) and the President’s assent to the Basic Education Laws Amendment Act, 2024, (the “BELA Act”), the GNU remained intact at the end of 2024. It was also using its internal conflict resolution mechanisms, the “GNU Clearing House Mechanism”, to resolve disagreements amongst its political parties.

The emergence of this coalition marked a watershed moment in South Africa’s democratic evolution – a maturing of South Africa’s democracy which has now departed from majority rule by a single political party. While the nation continued to face social and economic challenges, the government’s inclusive approach and the development of a proposed National Dialogue offered a promising pathway toward meaningful progress.

Economic Developments

The economic situation considerably affected constitutional rights and freedoms in 2024. Unfortunately, it was the same significant challenges faced in previous years:

Stagnant economic growth

A stagnant economy that only grew 1,1% in terms of real GDP (i.e. the value of all the goods and services produced by South Africa’s economy in 2024, adjusted for inflation) in 2024. Barely outstripping South Africa’s population growth of 1%. This means that the economy simply grew too slowly to effectively address major issues, such as unemployment, poverty and income inequality. While loadshedding was successfully addressed in 2024, disruptions to rail and port operations continued to inhibit economic growth.

Unemployment

Unemployment averaged approximately 32,8% for the year. Importantly, South Africa has a shrinking tax base due to the high unemployment rate and has a desperate shortage of skilled workers in almost all sectors. On the bright side, the country has a large youth population (i.e. 15- to 34-year-olds): This youth population is in the vicinity of 20,85 million, making up roughly a third of the country’s population.

This youth population is, by nature of their age demographic, ready to enter the workforce as taxpayers (to remain in the workforce for a long time/for their lifetime). They are also in the prime phase of life to learn skills. However, despite the large size of the youth population, approximately 45,5% of these 15- to 34-year-olds were unemployed in the first quarter of 2024. This unemployment rate is significantly higher than the national rate of 32,9% for that same period.

What this tells us is that South Africa, to its own detriment, is failing to make good use of its demographic advantage and, even worse, fails its youth by not providing them with quality education, skills training and a growing economy that creates jobs. (Here one is reminded of the (unimplemented) recommendation from the High Level Panel. Back in 2017, the Panel recommended that to align the basic education sector to the economy’s needs, the creation of a vocational track must be prioritised. This track would channel the majority of learners to vocational educational career paths, much as is done in e.g. the Netherlands, Germany, Switzerland etc.)

Standard of living

Inflation (the rate at which the overall prices of commodities (i.e. goods and services) increase, measured as the CPI average, sat at 4,4%. Here it should be noted that the International Monetary Fund pointed out that South Africa’s ineffective policies, its deep-rooted structural rigidities and its governance problems (prior to the GNU) had caused an erosion of South Africans’ standards of living, leading to the real income per capita falling for more than a decade. Finally, income inequality, measured as a GINI coefficient, remained very high at 0,63. (Here a coefficient of 0 would indicate no income inequality (i.e. everyone earns the same income), while a coefficient of 1 would indicate perfect income inequality (i.e. where one person earns all the income).)

Government’s debt

Public debt – the amount of money that the state owes to its creditors – is currently in an unsustainable situation. It was approximately $311,3 billion USD at the end of 2024 – i.e. more than 75% of South Africa’s GDP. The state’s inability to restrict its spending has caused public debt to triple since the global financial crisis: From 25% of GDP in 2008 to 75% of GDP in 2024.

Too little money in the fiscus

South Africa’s stunted economic growth has limited the government’s ability to make the Constitution a reality for all South Africans: The government draws its money from taxes paid by citizens active in the economy. Without enough income in the fiscus, the government cannot provide necessary public services, such as education, healthcare, social security etc. Additionally, when the state owes lots of money (i.e. when public debt is high), it means the government has less money to spend on other priorities and high public debt levels may affect economic stability.

On a positive note, the government acknowledged the importance of private sector investment in addressing economic challenges. Deputy President Paul Mashatile stated that privatisation was not a “swear word”, saying the GNU was seeking more foreign investment in energy, water and infrastructure due to South Africa’s constrained public finances. The GNU also launched several initiatives aimed at revitalising the economy, including investments in green energy and infrastructure projects.

Conclusion

The above emphasises South Africa’s urgent need for comprehensive economic reforms to stimulate much needed growth. The new political developments, specifically the emergence of coalitions, marked a watershed moment in South Africa’s democratic evolution – a maturing of South Africa’s democracy which has now departed from majority rule by a single political party. The GNU offers the chance for the government to make important and much needed policy changes to stabilise and grow the economy, allowing more rights and freedoms to be realised. It also needs to urgently address structural issues, to ensure e.g. efficient rail and port operations and to undertake a thorough review of state spending.