Charting a Path Forward: The ANC, the GNU, and the Challenge of Economic Justice

Dr Che Selane.

The outcome of the 2024 general elections marked a watershed moment in South Africa’s democratic journey. For the first time since 1994, the African National Congress (ANC) did not secure an outright majority. This reality signaled a sobering shift, not only for our movement but for the broader trajectory of our democracy. It forced the ANC to enter uncharted terrain: a ‘Government of National Unity’ (GNU) forged not out of political preference, but of necessity.

As an ANC cadre and revolutionary, I accept this reality with humility and clarity. The voice of the people was heard, and it delivered a clear message for our movement to renew itself, reconnect with the masses, and reimagine how we lead in a rapidly evolving political environment. In response, the ANC resolved to form a GNU, not to protect power, but to preserve the country from paralysis and ensure that governance remains in the hands of those committed to constitutionalism, stability, and progress.

This was not an easy decision. It came with immense challenges. Within the GNU, we are required to cooperate with parties whose ideological foundations are fundamentally different from ours. We are compelled to compromise, to negotiate, and at times, to concede. The ANC, a movement grounded in the principles of liberation, equality, and social justice, now finds itself navigating coalition politics that demand constant balancing acts.

This political balancing act becomes most evident in the debate around economic policy, especially the proposed increase in Value-Added Tax (VAT). Let us not shy away from this truth: the VAT proposal has exposed the deep ideological tensions within the GNU and highlights the socio-economic contradictions our people face daily.

VAT, by design, is a regressive tax. It does not discriminate between rich and poor. It levies the same burden on a billionaire buying bottled water as it does on a pensioner purchasing maize meal. Increasing VAT under the guise of “fiscal consolidation” may appear technocratically sound, but it is socially unjust. It deepens inequality, worsens poverty, and sends a message to the working class that they must once again pay the price for a crisis they did not create.

The argument advanced by proponents of the VAT hike is rooted in closing the fiscal gap, raising more revenue to fund essential services. But this logic falters when placed against the backdrop of widespread corporate tax evasion, illicit financial flows, under-utilized wealth taxation tools, and inefficiencies in state expenditure.

Moreover, South Africa is not only facing an economic crisis, it is confronting a moral and justice crisis. Asking the poor to contribute more, while the wealthy are left untouched, contradicts the spirit of the Freedom Charter and the founding values of our democracy.

Within the GNU, the ANC must play a critical role as the anchor of progressive values. We must be the voice that speaks for the unemployed, the workers, the youth, and the marginalized. We must engage with our partners robustly, but we must never lose sight of our historic mission: to build a united, non-racial, non-sexist, democratic, and prosperous South Africa. This means opposing any policy that shifts the burden of austerity onto the shoulders of the poor. It means fighting for a people-centred fiscal policy that raises revenue fairly and redistributes it equitably.

The good news is that alternatives exist. We do not have to rely on VAT increases to stabilize our economy. South Africa remains one of the most unequal societies in the world. A small percentage of citizens control the majority of assets. A wealth tax, levied on net assets above a high threshold, would be a fair and efficient way to increase revenue. Despite these, billions of rands are lost annually through corporate tax avoidance and illegal financial outflows. Strengthening the South African Revenue Service (SARS) and implementing stricter financial oversight can recoup significant revenue.

While ordinary citizens tighten their belts, so too must the state. Cutting unnecessary perks for public officials and reducing spending on non-essential infrastructure can help redirect funds to priority areas. Furthermore, sustainable revenue generation comes from growing the economy. By investing in local economies, township enterprises, and rural development, will expand the tax base while uplifting communities.

The GNU is not an ideal vehicle, but it is the one we have. It provides a fragile platform upon which to build consensus and resist regression. But for the ANC to lead effectively within this framework, we must be guided not by convenience, but by conscience. We must recommit ourselves to the founding values of the ANC. We must re-centre the people in all we do, especially the poor and working class. And we must not allow coalition politics to dilute our revolutionary integrity.

In this new era, the ANC has the opportunity to demonstrate that coalition governance does not mean surrendering. It can, if guided by principled leadership, become a space where progressive policies are defended, and the needs of the masses are never sacrificed on the altar of political arithmetic.

Let us rise to the challenge, not as custodians of power, but as servants of the people. For in the face of adversity, the ANC must always choose justice, always choose the people, and always choose the revolution.

 Amandla!

 Dr Che Selane is a legal scholar, former ANCYL Provincial Secretary, and Member of the Limpopo Provincial Legislature. He writes in his personal capacity.