Analysts see the new unity government comprising the ANC and the opposition DA as a chance to stabilize the country.
South Africa's newly elected parliament convened in Cape Town after two weeks of intensive behind-the-scenes talks with other parties regarding a government of national unity (GNU).
The ANC announced a day before the sitting of the National Assembly it had reached a coalition agreement with the opposition Democratic Alliance (DA), which is popular with white voters and several other smaller parties.
DA leader John Steenhuisen confirmed that the basis of the agreed document is the constitution and the Bill of Rights, which recognizes South Africa in all its diversity.
Ramaphosa's African National Congress party has been weakened after losing its long-held majority in last month's election, leaving him to seek the support of other parties.
A new dawn beckons
When President Cyril Ramaphosa held his first State of the Nation Address almost five years ago in Cape Town's parliament, he promised disappointed South Africans a "new dawn" that would usher in economic transformation and job creation.
Five years on, Ramaphosa's promised dawn never came. But now there is a window of opportunity for a second chance to reboot South Africa, Daniel Silke, an independent political analyst in Cape Town, told DW.
Another political analyst, Asanda Ngoasheng, called it a very interesting arrangement. "In terms of South Africa being able to move forward, it is not a bad idea," she told DW.
A business-friendly government
Ngoasheng added that the new formation would please the markets and make sense from an economic perspective. Both parties share rather pro-liberal policies, with the ANC leaning more towards a socialist point of view.
The South African Rand strengthened slightly against the dollar after the news of the unity government was announced.
President Cyril Ramaphosa had stressed the need for a national dialogue and opted for the GNU with three other parties, including its largest rival, the pro-business Democratic Alliance, instead of a coalition government.
The socially conservative Inkatha Freedom Party (IFP) and the right-wing Patriotic Alliance (PA) are also on board. The DA will get the post of deputy speaker of the National Assembly.
For Fredson Guilengue, an analyst at the Rosa Luxemburg Foundation in Johannesburg, the main reason the ANC proposed the GNU is stability.
"What the ANC had in mind by inviting the DA and the IFP to be part of this agreement was the need for stability for the government, which would mean stability for the country itself," Guilengue told DW. As part of the agreement, the DA said it would back Ramaphosa's bid for reelection.
Left-wing populist parties left out
The Economic Freedom Fighters (EFF), which came fourth in the election, sought to convince, especially black voters towards left-wing populism, and the MK party (uMkhonto weSizwe) led by former President Jacob Zuma, who was thrown out of office by the ANC in 2018, had rejected to co-govern with the ANC under Ramaphosa.
"If they had gone into a coalition with EFF and MK, it would not have worked," Guilengue said. "EFF is regarded as a disruptive political party and they could not provide trust that the ANC would need to run its government."
For the first time in South African politics, there will be a "black bloc" of opposition parties, while the ANC shares government mainly with a "white" party, the DA, Asanda Ngoasheng stressed.
The ANC, which has been in power since the 1994 elections that marked the end of apartheid, lost its majority after securing 40% of the vote. The DA came second with 22%, followed by the (MK) slightly above 14% and EFF with around 9%
A unity government without all major parties?
"It does look as if it is more of a multiparty government than a government of national unity since the two major parties, the MK and EFF, are not looking as if they are not going to be part of the broader new arrangement," Silke said.
For the balance of parties that are likely to participate in the new government, Silke sees the ANC's decision as a window of opportunities for South Africa to exclude the more extremist elements and build a more centrist based of coalition of forces that can kick-start economic reforms and thereby boost economic growth and social wellbeing as a result.
"But the questionmarks really hang over how disruptive those who are going to be excluded from this new government arrangement are going to be," Silke added.
Forming a GNU requires substantial buy-in from the participating parties and compromises on what have been very divisive ideological issues for the participating parties, particularly for the ANC and the DA.
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Can the ANC survive?
Analysts argue that the government of national unity provides a platform to move beyond race and focus instead on shared goals around service delivery and infrastructure development.
Corruption has long plagued South African politics, hampering growth, inflating costs and eroding trust. A GNU offers a chance to implement robust anti-corruption measures since increased scrutiny and cross-party checks come with a diverse GNU.
Whether or not the ANC itself can remain cohesive since it battles internal issues relating to whether the DA is a good partner for the ANC in this reboot of South Africa remains to be seen, Silke said.
"It is an uncertain period but a period where there are prospects for a dramatic change in South Africa."It is a new context for South Africa. It depends on the power balance within this formation if it is going for work."
For the ANC, it seems successful because President Ramaphosa is most likely allowed to stay in office, Guilenge said: "But it might happen that he might not serve his second term until the end."
Edited by: Chrispin Mwakideu
