Africa News blog

Support slumps for rival to South Africa’s ANC

It would be hard for the leaders of South Africa’s COPE party to put a positive spin on its latest poll rating of just over 2 percent. If the breakaway group from the African National Congress gave the ANC a bit of a jolt before elections in April, the ruling party doesn’t seem to have much to worry about from that quarter now.

In terms of electoral success, it hasn’t been a good year for parties trying to challenge the former liberation movements that run most of southern Africa.

In Namibia, a breakaway group from the ruling SWAPO party emerged as the main opposition, but still only won just over 11 percent of the vote and complained of foul play. In Mozambique, Frelimo won another resounding victory, beating both old rival Renamo and the new MDM – which complained at the barring of some of its candidates.

Angola’s President Jose Eduardo dos Santos signalled to his MPLA party that he would wait another three years before a presidential election he is almost certain to win.

The picture is somewhat different in Zimbabwe, where President Robert Mugabe was forced into a power sharing deal with rival Morgan Tsvangirai, a former union leader, but even there the one-time guerrilla told his ZANU-PF recently to stop bickering and mobilise to win ‘uncontested victory’ in the next election.

There is a big difference between South Africa and some of its neighbours in that nobody is challenging the fairness of the electoral system.

But the same question arises here as elsewhere as to when, if ever, opposition parties might be able to seriously challenge the hold of the movements that came to power through their victories over colonial or minority rule.

What is COSATU fighting for?

South Africa’s largest trade union federation was quick to break into stirring songs of class struggle during its recent congress and COSATU members showed an impressive ability to sign along in unison.

But the question of what it is fighting for these days and its role in the ruling tripartite alliance with the African National Congress and the South African Communist Party has never been under such great scrutiny as it has since President Jacob Zuma took office in May.

Zuma’s struggle for power would have been much harder to win – perhaps even impossible – without the support of the unions and he was happy to take centre stage at the COSATU conference in a bright red Mao-style suit.

But while ever ready to promise support for fighting poverty, Zuma has shown scant sign of agreeing to union demands for everything from big increases in spending to the nationalisation of the central bank.

Unions are now preparing to do battle over the fate of Trevor Manuel, who won the respect of markets as finance minister for policies that unions see as too pro-business and who now heads a planning commission in the presidency.

As well having little love for Manuel, unions feel his role is undermining one of their own in the government – Economic Development Minister Ebrahim Patel.

But the argument highlights the difficulty for COSATU of being both within a broad government it helped bring to power and trying to then pressure that government for changes in the name of a working class struggle.

Zuma’s balancing act

South African President Jacob Zuma has a tough balancing act to perform as he begins his term in office.

 On the one hand, Zuma is anxious to assure investors that there will be continuity in the economic policies that have secured the country’s status as the regional powerhouse.

On the other, he has to address the increasingly vocal demands of his allies in the labour movement, whose support propelled him first to the leadership of the ruling ANC and then to the country’s top government job after April 22 elections.

But what the unions want – increased social spending to cushion their members against the ravages to the global recession that has now also landed in South Africa – would mean veering away from the prudent fiscal stance that has ironically cushioned the country from the worst of the world crisis.

Investors are also keen to see whether Zuma bows to pressure not to renew the contract of central bank Governor Tito Mboweni, loved by financial markets but vilified by unions that say a pre-occupation with inflation targeting has seen the Reserve Bank maintain a tight monetary policy at the expense of economic growth, impoverishing millions.

South Africa’s unions flex their muscles

After South Africa’s unions came close to blocking the listing of mobile phone group Vodacom, new President Jacob Zuma may want to keep a closer eye on his left wing allies.

The attempt to sink the $10 billion bourse debut of Vodacom, which went ahead on Monday after an 11th-hour court ruling, hurt the rand currency and revived investor concerns over Zuma.

There was no doubt the bid had undermined Zuma’s strenuous efforts before last month’s election to assure business and investors that there would be no policy shift towards his left wing allies once he took office.

Lawyers for the government opposed union federation COSATU’s attempt to stop the listing in court and made clear the Zuma administration stood by what had been agreed already.

But investors still want reassurance from Zuma that other deals would not face similar challenges by his allies.

COSATU, which has 1.8 million paid-up members in the country of nearly 50 million, said it was angry and disappointed at the court allowing the listing to go ahead and called on South Africans to boycott Vodacom.

But by taking a strong stance on the Vodacom listing, the labour federation may be positioning itself to play a bigger role and could intensify its protest action against other businesses.

How far will South Africa’s ANC shift?

Given that the leaders of the world’s most firmly capitalist countries are splashing around unprecedented billions to nationalise banks, prop up industry and try to get economies moving, it might seem churlish for anyone to question South Africa’s ruling ANC for planning to spend a bit more freely.

This weekend, the African National Congress set out its election manifesto priorities of creating jobs and improving education and health – promises interpreted by many as marking a generally leftward shift under the leadership of president in waiting Jacob Zuma.

But the plan raises the questions of how the spending will be paid for and how dramatic a shift to the left there will be – of major interest to investors as well as South Africans.

“Zuma did not attach a price tag to the manifesto, but ANC leaders privately admit, to allay fears of a tax hike, that it would be too costly to implement,” said this article in the Sunday Independent.

Africa’s biggest economy has grown significantly since the end of apartheid in 1994, although the dynamism had started to falter even before the global financial crisis spread gloom around the world.

South Africa’s poor and its workers had long complained that the benefits were not being shared around fairly and that only those in a new elite were thriving. The leadership under Zuma, widely expected to become president this year, was always going to be under pressure for more social spending from the ANC grassroots and the party’s union and Communist Party allies.

The pressure may have increased further with the emergence of the new COPE party after the ousting of President Thabo Mbeki. Although COPE’s electoral impact is uncertain and it has not yet spelled out its policies clearly, the fact that close allies of Mbeki are behind it has suggested it is likely to align more with the former president’s stance, seen as ‘pro-business’.