(Bloomberg) — South Africa’s two largest political parties are nearing agreement on the number of ministers each party would have in their efforts to form a broad coalition government with other smaller parties, people familiar with the matter said.
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The African National Congress, which lost its majority for the first time in last month’s elections, increased its offer to the Democratic Alliance for six ministerial posts from three from late Sunday, said the people, who asked not to be identified. are not authorized to comment on the matter.
The centrist Democratic Alliance, which received the second highest number of votes, has reduced the number of posts it is seeking to six or seven, after initially asking for ten, although disagreements remain over the seniority of the positions that to the DA, the people said.
The composition of the executive branch is being closely watched by investors who anticipate an acceleration of reforms needed to tackle the country’s energy crisis, repair its crumbling ports and railways and reduce crime and corruption. South African financial assets rose this month on optimism that the new government will continue to pursue pro-growth policies.
In a letter sent to ANC Secretary-General Fikile Mbalula on Sunday, the DA expressed its preference for portfolios, listing eleven portfolios ranging from minerals and energy, transport, trade and industry to the ministries of public works. The party also proposed that a member of the DA be appointed vice president, according to the letter confirmed by DA officials.
‘New discussions’
DA spokesman Richard Newton declined to comment on the number of posts the party has been offered, but said negotiations have continued since the letter was sent and the party remains committed to talks on the formation of a new executive.
“We are not running away from anything at this point and negotiations have continued,” Newton said by phone. “There are a lot of new discussions going on.”
ANC spokeswoman Mahlengi Bhengu-Motsiri did not respond to a call and text message requesting comment. In a statement, the party criticized the leaking to the media of political parties’ demands for cabinet positions and suggested the tactic was hampering the executive appointment process.
“Negotiating by leaking demands to the media is an act of bad faith and this practice will not benefit the cause of any party,” the ANC said. “The national unity government cannot be ransomed by any party. The people need a government that will be established sooner rather than later.”
The party reiterated that cabinet appointments are the prerogative of President Cyril Ramaphosa. An announcement about the appointments is “close”, the party said.
–With help from Paul Vecchiatto.
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