Ramaphosa - Business doesn’t dictate to govt, ANC
President Cyril Ramaphosa has stressed that business interests do not dictate government decisions, saying on Sunday that the ANC had autonomy in its governance.
This follows confirmation that several businesses have contacted him and DA leader John Steenhuisen, urging them to put aside their differences and stay in the Government of National Unity.
The two parties have recently clashed, mainly over the fiscal framework passed last week, which includes a controversial 2% VAT hike.
The budget was approved with 194 votes from the ANC, IFP, Patriotic Alliance, and smaller parties, while 182 MPs from the DA, EFF, MK Party, and others opposed it.
“Business does not dictate what happens in government. It does not dictate what happens in the ANC that I lead. We take our decisions based on our consideration of everything that will advance the interests of our people,” Ramaphosa said.
The president made the remarks on the sidelines of an ANC branch meeting in Soweto on Sunday.
While he acknowledged the private sector's right to express its views, Ramaphosa emphasised that business leaders do not influence the ANC.
“I want it to be clear that the ANC will not be influenced by what business says; we are principally influenced by what our people say, and so we are not under pressure by business or whoever. If we are under any pressure, it is the pressure that comes from our people and our people as a whole, not only ANC members,” Ramaphosa added.
Ramaphosa also acknowledged the role of business in South Africa's economy, noting that the private sector accounts for about 70% of economic activity, making it a crucial player in national development.
VAT Hike Dispute
Ramaphosa also addressed the finance committee's resolution, which included a 30-day review period, during which Treasury will explore alternatives to the VAT increase aimed at bridging an R13.5 billion shortfall.
He reiterated that the government would thoroughly assess all available options to determine whether the increase is necessary.
“From the current examination, Treasury said having looked at various areas where they can look, it does not seem to be so. However, the proposal from various parties is being taken very seriously, and that process will be engaged for the next 30 days. It is only thereafter that a report will be available and presented so we can take the matter forward,” Ramaphosa explained.
On Thursday, the DA filed an urgent application in the Western Cape High Court to halt the implementation of the 0.5% VAT increase, set to take effect on May 1.
US Tariffs on South Africa
Ramaphosa also spoke about the recent tariffs imposed by US President Donald Trump on South Africa, acknowledging that the U.S. is a sovereign nation with the right to make its own decisions.
South Africa and the US are at odds due to differing foreign policies.
Trump’s tariffs will impose a 31% levy on South African exports to the U.S., with an additional 25% tariff on vehicles and auto parts.
Ramaphosa stated that the South African government is carefully evaluating the impact of these tariffs on the economy and trade relations.
“In the end, these are matters we are going to continue dealing with in a very responsible and very proper manner, and we are not a government that will just act out of spite, and we are not a government that will act out of emotions. We examine everything that we do very carefully and look at the implications and the impact. So, that is exactly how we are going to do,” Ramaphosa said.
On Friday, Trade Minister Parks Tau confirmed that the government was seeking clarification from the United States on how the 31% tariff on South Africa was determined.
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