Only an ANC and Democratic Alliance (DA) coalition will be welcomed by the financial markets, according to political analyst Sanet Solomon.
Solomon, one of several experts who participated in a webinar discussing the aftermath of the national elections, said: “The coalition comprising the DA and the ANC will improve the business environment as it is believed that the two parties might hold each other accountable.
“The coalition will benefit the country as the financial markets will react positively. However, the two parties have different policies, which might affect the coalition.
“Things such as cadre deployment and black economic empowerment the DA does not support. The partnership might also be problematic to some people who have been implicated in state capture.”
Solomon said the coalition might be welcomed by some hoping for improved service delivery.
ALSO READ: Inside the ANC’s coalition talks: NWC considers a government of national unity
Regarding a coalition between the ANC and the Economic Freedom Fighters (EFF) or uMkhonto weSizwe (MK) party, she said the parties’ policies were aligned but the financial sector might not react positively.
She also said that because of the similarities among the three parties, it might create the impression that a little has changed.
“It will look like a continuation of the same government,” she said.
Philippe Burger, professor of economics at the University of the Free State, said if the ANC and the DA go into a coalition, it will not be easy for the DA to introduce a vote of no confidence on ANC members.
But a coalition involving EFF and MK might push away the investors.
ALSO READ: SA coalition talks: Thuli Madonsela and Gayton McKenzie unite on key issue
But he did not foresee MK and EFF being in a partnership with the ANC because the two parties were formed by disgruntled members of the ANC.
On the factors that led to the ANC decline, he said the party had decided to focus on grants instead of creating decent jobs.
Marius Roodt, of the Institute of Race Relations, said a coalition government would make it difficult for parliament to pass legislation.
He called on the authorities to extend the coalition negotiations days from 14 days to at least 30 days to give the parties a chance to prepare for the coalition.
Download our app and read this and other great stories on the move. Available for Android and iOS.