ANC dominance poses risks to South Africa government

Significance Despite long-standing criticisms of bloated government, the new Government of National Unity (GNU) comprises 32 ministers and 43 deputy ministers (up from 30 and 36, respectively). Moreover, despite its massive electoral losses, the ANC has retained a disproportionate share of cabinet posts and most key ministries. Impacts The Democratic Alliance’s exclusion from Gauteng’s provincial cabinet may undermine cooperation at the national level. Initial favourable currency movements prompted by the GNU have been tempered by tensions over cabinet posts. Equity and bond gains have so far proved robust, but GNU tensions may temper them too.