End of the road for John Steenhuisen
The leader of South Africa’s Democratic Alliance, a key member of the ruling coalition, plans to step down at internal elections in two months, after facing criticism over his leadership.
John Steenhuisen, who’s led the DA since 2019, won’t stand for another term at the party’s elective conference in April, according to people familiar with the matter who asked not to be identified as the information isn’t public.
A formal announcement is expected to be made as soon as Wednesday, they said.
His departure would raise fresh uncertainty over South Africa’s coalition government, which has been fractious since its formation by the African National Congress 18 months ago, including a standoff last year that delayed the approval of the national budget.
It would also pave the way for Cape Town Mayor Geordin Hill-Lewis to stand as party leader.
The rand pared a gain of as much as 1.1% to trade 0.5% stronger at R16.01 per dollar as of 12h33 in Johannesburg.
Steenhuisen, who also serves as South Africa’s agriculture minister, said he’s unable to comment on whether he’ll run for the party leadership position before nominations for the post open on 24 February.
“Markets don’t like anything that can be interpreted as increasing political uncertainty, but I think there’s some relief that it isn’t a conflict with the ANC, that it seems to be an internal DA issue,” said Henrik Gullberg, a macro strategist at Coex Partners.
“Having said that, anything that could undermine the stability of the GNU and the reform-focused DA is likely to be initially ZAR negative, at least until there is more detail on the replacement.”
The DA leader has been under growing pressure within the DA to quit amid differences over policy choices within the nation’s coalition government. Steenhuisen, 49, has also faced criticism from the DA’s key constituents, including farmers who are unhappy with Steenhuisen’s handling of a deadly outbreak of foot-and-mouth disease that’s led to higher meat prices.
He’s also had to implement a policy that gives preference to those with Black-economic-empowerment credentials when securing export permits to the European Union.
Hill-Lewis, 39, said in an interview on Monday that he would “very seriously” consider running if Steenhuisen didn’t stand, but wouldn’t join the national cabinet.
He’s previously said he’ll support the DA’s continued participation in the so-called government of national unity, though the terms of engagement would have to be improved.
Hill-Lewis is considered a rising star within the DA, and some of its members and backers have been lobbying for him to take over as leader.
That campaign gained momentum after Steenhuisen became embroiled in a public spat with the party’s finance chief and was implicated in misusing a credit card — although an internal probe cleared him of wrongdoing.
The DA has governed Cape Town since 2006, and Hill-Lewis was appointed as mayor in 2021, the youngest-ever appointee to the post. The city, a tourist mecca, is widely viewed as the best-run of the country’s eight large metropolitan areas.
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