The ANC’s sudden embrace of South African business - Financial Times

South Africa's political landscape is undergoing a significant transformation that has profound implications for foreign direct investment across the continent. The African National Congress (ANC), which has governed since 1994, is recalibrating its relationship with the domestic business community—a shift that reflects both internal pressures and the party's declining electoral dominance. For nearly three decades, the ANC maintained an often-contentious relationship with South African business. The party's liberation struggle credentials and ideological commitments to radical economic transformation frequently positioned it at odds with the corporate establishment. This tension manifested in labor disputes, nationalist rhetoric, and policies perceived as anti-business. However, recent electoral losses and mounting governance challenges have forced a strategic reassessment. The mathematical reality is stark: the ANC's share of the national vote fell below 58% in the 2024 elections, marking its first time as a minority government. This watershed moment has compelled party leadership to seek broader coalitions and stakeholder support. Crucially, this includes reconciliation with South Africa's business sector—a constituency that controls significant capital flows, employment generation, and tax revenues that the state desperately needs. **The Economic Imperative** South Africa's economy has stagnated relative to regional peers, with growth rates averaging below 1% annually in recent years.