Coalition politics are a double-edged sword for business in KwaZulu-Natal

Towards the end of last year, I wrote an analysis about the pitfalls of coalition governance in South Africa, focusing on how such a model of governance is ill suited for our country's systemic challenges bred by inequality and historical injustices.

As a nation, we have consistently failed to set aside our differences in favour of the greater good. This is evidenced in the latest chaotic vote of no confidence motion against the Premier of kwaZulu-Natal (KZN) Thami Ntuli that took place in December.

While my skepticism of coalition politics continues to be vindicated, in this analysis, I want to focus on something else that has been bothering me. Leading up to the motion of no confidence, I gave organised business in the province a chance to air their views about what a change in government in KZN would entail.

The main conclusion was that a sudden change in government in the province would lead to political instability and therefore, was not good for business. From a broader perspective, one can agree with that notion, however, we must look at these issues with a magnifying glass.

It is no secret that big business plays a major role in terms of political influence and lobbying. In South Africa's political landscape, big corporations have dedicated massive resources, and have funded and engaged with multiple political parties which have influenced alliances and policy propositions during coalition negotiations after the elections in May 2024.

My view is that their funding and access to multiple Government of National Unity (GNU) partners allowed them to advocate for policies that directly favour their interests, such as deregulation of laws and policies that aim to redress the injustices of our past, and other ventures in the public-private partnerships (PPPs) space.

The funding of minority parties has caused policy inconsistencies, especially when it comes to foreign affairs in South Africa. Some of our GNU partners have consistently undermined the very fabric of our reconciliatory past such as Black Economic Empowerment, Affirmative Action and Employment Equity.

We have some GNU partners who even openly support Israel and pander to United States aggression from time to time. Some are openly against land expropriation without compensation, the list is endless.

We know very well that there are major corporations who have the ability and are better equipped to absorb these policy inconsistencies, and they continue to get richer, make more profits and grow larger and larger each year.

Therefore, my hypothesis dictates: A government made up of smaller coalition partners is weaker, and easily influenced on policy by big or organised business. This opens us up to being a profit driven economy. While on the flip side, a dominant party form of government can easily dictate policy and wrestle control from big business and actually put the needs of the people first, over profit margins.

However, I digress. The real question is; what does this mean for smaller players in the business community under the current circumstances?

The crux of this analysis is that small business suffers at the hands of inconsistencies due to coalition politics. In a country that once declared that small businesses are the engines of economic growth, we sure have a funny way of showing it!

The reality is that, in this current economic climate, small businesses have fewer resources to survive and are intrinsically more vulnerable to instability and the administrative burden of navigating unpredictable regulatory environments.

Here is the cold hard truth; coalition politics are negatively impacting small businesses through increased uncertainty, delayed decision-making and disrupted public services due to political infighting between politicians and officials.

This is very prevalent in the current GPU set up in KZN.

It would be very interesting to see if we can have an honest review of the Business Confidence Index of KZN since the coalition forces came into play. Has the coalition been good for organised business, the answer is yes, but what about the little guys?

There, the answer is way more ambiguous and is a lot greyer than you think.

A step in the right direction is that the government of KZN needs to stop focusing on politics and focus on what matters. Personalities will not put food on the table. Political patronage will not secure the ease of doing business for our future generations. Although a dominant party model may not be the most ideal, unless small business has an urgent dialogue with the coalition partners in KZN, at the moment it seems as if it's the only way to get things done.

In 2026, the powers that be must stop the gatekeeping and declare the province open for business!

Ayanda Mdluli is the editor of the Daily News in Durban, KwaZulu-Natal.