In a historic move, South Africa has formed a national unity government, three decades after a similar agreement played a vital role in the nation's transition to democracy. The ruling African National Congress (ANC), which lost its controlling majority in recent elections, was pushed to negotiate this agreement, signaling a landmark moment for the country.

This unexpected alliance brings together unexpected partners, including the white-led Democratic Alliance (DA), a pairing that was once considered unimaginable by many in South Africa. The DA, which advocates for free-market economics, emerged from a union of groups that included remnants of the apartheid-era ruling National Party.

The inclusivity of this government is still in the early stages, with specific details and the breakdown of cabinet posts yet to be finalized. There is also a possibility that ANC breakaway parties that have not joined the unity government may attempt to influence events from outside. Nevertheless, the agreement has given shape to South Africa's political future as the new parliament convened for the first time since last month's historic elections.

DA leader John Steenhuisen, in a statement delivered in Cape Town where parliament met, hailed the day as the start of a new chapter for South Africa. However, experts have emphasized that this is not a traditional government of national unity, but rather a coalition needed out of political necessity.

The composition of this new government is similar to that in 1994 when the ANC, from a position of strength, joined forces with the National Party and the Zulu nationalist Inkhata Freedom Party (IFP). The IFP has already confirmed its participation, alongside the smaller Patriotic Alliance, ensuring Cyril Ramaphosa will enjoy another term as president.

However, TK Pooe from the Wits University School of Governance in Johannesburg clarifies that this government of national unity is essentially a camouflage, emphasizing that it does not include the third and fourth parties from the election - the uMkhonto weSizwe (MK) party of former President Jacob Zuma and the radical Economic Freedom Fighters (EFF).

The political differences between the ANC and the DA are stark, with major contentious issues revolving around the ANC's national healthcare policy and its black economic empowerment program. The DA opposes these policies, claiming inefficiency and the enrichment of ANC cronies. Yet, ANC veteran Derek Hanekom highlights that despite their disagreement on legislation, both parties acknowledge the need for affirmative action and redress.

The announcement of this coalition government brings a sense of relief to investors and the private sector, who had concerns about the left-wing policies advocated by the ANC's natural allies, the EFF and MK. Both parties call for the nationalization of land and property to address racial inequalities that persist despite the ANC's strides in poverty reduction.

While the EFF and MK have rejected the idea of a national unity government that includes the DA, they plan to remain in the opposition and request key roles in oversight committees. Their presence in the opposition may present challenges, potentially disrupting proceedings in the coming weeks and months.

Overall, South Africa's formation of a national unity government signifies a crucial moment in the nation's politics, as diverse parties come together to navigate the challenges ahead and work towards stability and progress.