In its first five year term, the ANC-dominated Government of National Unity succeeded in starting to address a number of key areas of inequality, with notable early gains in the delivery of water supplies to rural areas, while for the most part maintaining political and economic stability. However, extravagant pre-election promises on housing, health, education and employment have been more difficult to fulfil.
Thousands still live in shacks awaiting promised housing.
Basic services and infrastructure in the former homelands were deliberately maintained at a bare minimum throughout the apartheid era. With the nine provinces allocated virtual autonomy for the delivery of most essential services, these former homelands ministries are struggling to upgrade their resources, attract qualified staff and overcome the mismanagement and corruption which was endemic under the previous administration. Despite these difficulties, the ANC remains dominant in the national and local political scene in South Africa, returning to power under the leadership of the new president, Thabo Mbeki. This narrow focus on the needs of the business and economic sector may be contributing to relative economic stability, but it is also blamed for cutting essential social services and for the loss of an estimated one million jobs since 1994. The economy, although stable, remains dependent on the worldwide value of gold, which in 1999 fell to its lowest level for 20 years.