South African President Cyril Ramaphosa was sworn in on Wednesday for a second term in which his African National Congress (ANC) will share power with other parties after it lost its majority for the first time in 30 years of democracy.

A former liberation movement, the ANC came to power under Nelson Mandela's leadership in the 1994 elections that marked the end of apartheid and had long been unbeatable, but it lost its shine after presiding over years of decline.

Following a parliamentary election on May 29 in which no party won a majority, Ramaphosa will head a government of national unity with five other parties, including the ANC's largest rival, the pro-business Democratic Alliance (DA).

While investors have welcomed the inclusion of the DA, which wants to boost growth through structural reforms and prudent fiscal policies, analysts said sharp ideological divisions between the parties could make the government unstable.

Just before the election, Ramaphosa signed into law a National Health Insurance bill that the DA said could collapse the country's health system.

It was unclear what would happen to that law under the new government. (AP)