The ANC had always polled above 50% since the country’s first democratic elections in 1994, which saw Nelson Mandela become president.
However, support for the party has been dropping significantly because of anger over high levels of corruption, unemployment and crime.
An alliance between the centre-right DA and the ANC is unprecedented as the two parties have been rivals for decades.
Under Nelson Mandela, the ANC led the campaign against the racist system of apartheid in 1994 and won the country’s first democratic elections.
The DA’s critics have accused it of trying to protect the economic privileges the country’s white minority built up during apartheid – a charge the party denies.
Addressing lawmakers late on Friday in Cape Town, John Steenhuisen, the leader of the DA, said: “Today is a historic day for our country, and I think it is the start of a new chapter.”
The National Assembly also swore in a speaker from the ANC, while the post of deputy speaker went to the DA.
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