The African National Congress (ANC) is considering forming a government of national unity after losing its governing majority in last week's election. Despite running South Africa since Nelson Mandela's 1994 victory, the ANC was penalized by voters for persistent poverty, joblessness, crime, corruption, and power cuts.

Spokesperson Mahlengi Bhengu-Motsiri announced on Wednesday that the ANC, still the largest party but unable to govern alone, is in talks with five other parties, including the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF). The party’s National Executive Committee will discuss the options on Thursday.

"The conversation is leaning towards a government of national unity because this is what the people of South Africa have indicated," Bhengu-Motsiri said, aiming to unite various societal sectors behind the new government. She added that President Cyril Ramaphosa will remain in his position, dismissing any demands for his removal as a condition for coalition talks.

The ANC secured 159 seats out of 400 in the new National Assembly, while the DA won 87 seats, and the EFF 39. Jacob Zuma's uMkhonto we Sizwe (MK) party secured a surprising 58 seats, while the Inkatha Freedom Party and the Patriotic Alliance won 17 and nine seats, respectively.

The business sector favors a coalition between the ANC and the pro-business DA, which opposes some of the ANC's Black empowerment policies. In contrast, the EFF's radical proposals, including nationalizing mines and redistributing land, are viewed negatively by investors. The rand fell more than 1% against the dollar during Bhengu-Motsiri's announcement.

Despite approaching Zuma's MK party, the ANC was rebuffed. Bhengu-Motsiri stated, "Our door remains open." Zuma, a strong opponent of Ramaphosa, remains influential in KwaZulu-Natal, where additional police have been deployed to maintain public order.