South African President Cyril Ramaphosa was sworn in on Wednesday for a second term. For the first time in 30 years, the African National Congress (ANC) lost its majority and will now share power with other parties.
The ANC, a former liberation movement led by Nelson Mandela in 1994, has seen its dominance wane after years of decline. In the recent May 29 parliamentary election, no party secured a majority.
Ramaphosa will now lead a government of national unity, including the ANC’s main rival, the pro-business Democratic Alliance (DA).
Investors welcomed the DA’s inclusion due to its focus on structural reforms and prudent fiscal policies. However, analysts warn that ideological differences could destabilize the government.
Ramaphosa recently signed a National Health Insurance bill, opposed by the DA, raising questions about its future. The DA also seeks to end the ANC’s Black economic empowerment program, a controversial issue in South Africa.
The inauguration ceremony in Pretoria featured African heads of state and dignitaries, including representatives from Cuba. The event included inter-faith prayers and a military display with helicopters flying South African flags.
Ramaphosa has yet to announce his new government, with ongoing consultations. The ANC remains the largest party with 159 out of 400 National Assembly seats, but lost millions of votes compared to the 2019 election. The DA holds 87 seats, maintaining its vote share.
The ANC’s loss reflects voter dissatisfaction with poverty, inequality, unemployment, crime, power cuts, and corruption.