'R20bn will be found to avoid VAT hike', ActionSA says as Budget 2025 rocks GNU

FRESH from playing kingmaker in passing the fiscal framework for the budget, ActionSA’s KwaZulu-Natal leader, Zwakele Mncwango, says the R20 billion needed to avert a VAT hike will be found this month.

“Three days ago we needed R28 billion to avoid this 0.5% VAT increase. R8 billion has now been found. We are confident the balance will be secured as well before the 1 May deadline. It is on that basis we gave our support to this. We made that very clear through a clause in our agreement with the ANC. We did not go in with blind support. If they don’t find the shortfall, we withdraw our support — it’s very simple,” Mncwango said.

His comments come amid a scramble and full-blown fallout within the Government of National Unity (GNU), after the Democratic Alliance (DA) voted against the fiscal framework. The party is heading to court to challenge its adoption.

Despite the DA’s rejection, the framework was approved following support from ActionSA and several smaller parties, giving the ANC the numbers needed for it to pass.

In response, the ANC has dared the DA to exit the GNU. While the DA is locked in internal discussions, several party insiders said they did not believe it would withdraw.

“They can’t afford to withdraw. If they did, it would become a race issue again. They’ll be accused of not wanting to work with black parties. It would also make them look weak heading into the 2026 local elections,” said one insider.

Another insider agreed, adding that the DA would consult its key backers before making a decision.

“Their big funders won’t want them to withdraw. They’ll want them to put up a fight and stay in the GNU because the DA is there to protect their investment and interests. Those funders won’t want to lose the money they’ve put into backing the DA,” the source said.

Their remarks have been echoed by several DA sources, including one involved in negotiations with the ANC.

“The DA wanted to negotiate demands that went beyond the budget. They were prepared to support the fiscal framework on the condition that expropriation was scrapped, along with other demands. They also wanted Tony Leon appointed as South Africa’s ambassador to the United States,” the insider revealed.

The ANC has tasked its National Executive Committee with determining a way forward in response to the DA’s vote against the budget. 

There are growing calls for DA ministers and deputy ministers to be removed, with the ANC Youth League also voicing its support for such action.

Addressing the media on Thursday, DA Federal Council chair Helen Zille adopted a combative tone in what she described as a “betrayal” by the ANC for negotiating with parties outside the GNU. A visibly angry Zille denounced the ANC, which she said “cannot be trusted,” and criticised ActionSA and other parties for supporting the ANC in passing the budget framework.