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The Inkatha Freedom Party (IFP) and the African National Congress (ANC) held a meeting, on Thursday 10 April 2025, in Johannesburg to discuss critical national matters, particularly the ongoing budget impasse within the Government of National Unity (GNU).

The IFP delegation was led by President Velenkosini Hlabisa and the ANC was led by its Secretary General Fikile Mbalula.

This engagement was necessitated by differences regarding the fiscal framework and the need to ensure a sustainable, inclusive, and responsible budget that prioritizes the needs of all South Africans.

Both parties reaffirmed their support for the revised budget presented by the National Treasury and subsequently processed by the National Assembly. We emphasize that the budget is fundamentally pro-poor, incorporating robust social safety nets to protect vulnerable families. This includes, among other measures, the expansion of zero-rated VAT items to ease the financial burden on low-income households.

The Parties affirm that the VAT increase is a temporary short-term intervention and agreed that the National Treasury must urgently explore alternative revenue-generation strategies to mitigate the impact of this marginal increase on consumers. Both parties further concurred that additional government borrowing is not a viable option given South Africa’s current economic constraints and debt levels.

The Parties reaffirmed unwavering commitment to the GNU, as both parties view the current arrangement as the most viable mechanism to ensure South Africa’s stability, growth, and long-term development under the current electoral framework. 

The IFP is committed to strengthening cooperation and consensus-building within the GNU to effectively address national challenges.

Additionally, the Parties committed to a bipartisan approach and process to securing the future of Ithala Bank, recognizing its crucial role in financial inclusion and economic empowerment, particularly in historically disadvantaged communities.

The IFP also confirms that it will meet with the Democratic Alliance (DA) on Sunday, 13 April 2025, as part of its ongoing engagements to foster cooperation and consensus in the national interest.

Issued by the Inkatha Freedom Party