A key political feature of South Africa's transformation was the African National Congress, the National Party and Inkatha Freedom Party working together in a grand coalition. This arrangement was praised by leading power-sharing theorist Arend Lijphart. The unity government began in 1994 but two years later the National Party withdrew. This article explores power sharing during the initial phase of the settlement and discusses three aspects of it. First, the South African example points to the electoral drawbacks of power sharing for minor parties. Second, the National Party's participation in the coalition stifled the early development of substantial political opposition which slowed the pace of democratic consolidation. Third, participation in a power-sharing arrangement undermined the National Party's electoral fortunes contributing to its dissolution in 2005. This was an unexpected outcome for a party which had co-authored the country's settlement a little over a decade earlier.