Ramaphosa’s message to South Africa’s top CEOs

Following a letter from South Africa’s top CEOs calling on the government to save the GNU, President Cyril Ramaphosa says they should stay out of it.

In a letter sent on Thursday (3 April), South African business leaders wrote to the leaders of the country’s two biggest parties, imploring them to settle their differences and keep the ruling coalition intact. 

South Africa’s Government of National Unity (GNU) is facing a crisis following a significant disagreement between the Democratic Alliance (DA) and the African National Congress (ANC) regarding the 2025 budget.

Both parties accuse each other of crossing the line during negotiations about the country’s spending plans and acting in bad faith.

On Wednesday (2 April), the DA voted against the budget, becoming one of the two GNU partners to do so.

However, the ANC was able to secure support from smaller parties composed of former DA members outside the GNU.

The ANC took a firm stance on the budget vote, with President Ramaphosa stating that the DA “defined itself outside the GNU” by opposing its partners.

The ANC said that the DA could not simultaneously hold a position in government and act as an opposition party, arguing that DA cabinet members could not effectively implement a budget they oppose.

Business leaders and the markets did not respond kindly to this development, with the rand falling more than 3% to the dollar, suffering even greater losses against other currencies like the euro and the pound.

In their letter, the business leaders said that the collapse of the government would lead to job losses and impact growth.

These leaders include the CEO of Investec, Fani Titi, the CEO of Discovery, Adrian Gore, the CEO of Business Leadership South Africa (BUSA), Busi Mavuso, and Duncan Wanblad, the leader of Anglo American. 

“We have a great deal to lose. A collapse of the Government of National Unity could reverse the gains we have achieved,” the leaders wrote.

“We therefore write to you with a simple plea: Stay the course. Stay in the room. Hold the line. Keep building. Compromise.”

The leaders added that South Africa’s challenges are urgent, and the country needs growth that creates jobs and delivers meaningful reform.

“A change in the core composition of the coalition government would undermine confidence, locally and globally,” the business leaders said.

“It would halt the momentum that has been built, and the damage — to trust, investment, and delivery — would be significant and possibly irreversible in the short term. This would have serious consequences for our economy and future prosperity.”

Ramaphosa’s response

However, after receiving the letter from South Africa’s top business leaders and CEOs, it seems that the letter did not have the desired effect.

On Sunday (6 April), Ramaphosa responded to the letter sent by the business leaders, saying that business does not dictate what happens in government.

“We do work with business on a number of issues; we have been cooperating with business as we execute our reforms because they have a role to play,” Ramaphosa said.

“Business plays a key role in the economy of our country…so they are a major player. We work together and we listen to each other’s views.”

However, “what will not happen is for any business to give orders and dictate what should happen—that space is occupied by people who have been elected. Business is not elected,” the president said.

“That we will never allow. We are only dictated to by the people of South Africa. Finished and klaar.”

Ramaphosa said that businesses are entitled to their views—some may want the GNU to continue, some may want the GNU to end—but elected officials already represent businesses among other sectors of society.

Ultimately, it is politicians who will decide what happens, he said.

“We are going to be taking decision on the basis of our considerations and evaluation of what has happened.”

“What has happened requires proper examination. Admittedly, this is a key moment of consideration, of examination and reconsideration of the various relationships (in the GNU).”

“So we enter into that process of discussion knowing very well that we have to examine the impact of everything that has happened.”

“We’re going to have cool heads, sit back, and examine everything properly without being driven by emotions and sectional interests. We are being driven by what is best for the people of South Africa,” the president said.

Daily Maverick quoted ANC chief whip at Parliament, Mdumiseni Ntuli, saying he received the letter from business with some discomfort, as the implication was that, without the DA in the coalition, the coalition would fail.

“What the letter is saying to me is business believes the state has no capacity without the DA and that a government without the DA can’t be trusted,” he said.

Today (7 April), the ANC’s national working committee will be tasked with deciding whether to keep the current composition of the GNU or change it.