South Africa’s rand closed a third of a percent stronger against the US dollar on Wednesday after Finance Minister Enoch Godongwana delivered the Medium-Term Budget Policy Statement (MTBPS). Markets responded positively to the National Treasury’s pledge to fiscal consolidation.
Godongwana told Parliament the government remains committed to narrowing the budget deficit, achieving a primary surplus within the medium term, and stabilising public debt, projected to peak at 75.3% of GDP in 2025/26 before declining.
Bond yields eased in afternoon trade, and the JSE All Share Index closed 0.8% higher, led by financial and industrial stocks. Early data showed renewed foreign interest in local bonds.
Treasury projects GDP growth at 1.2% for 2024, rising to an average of 1.8% over the medium term. Debt-service costs will consume nearly one-fifth of consolidated revenue.
The rand ended the day at R17.68 to the dollar, up from R17.74 earlier.
Treasury highlighted expenditure ceilings, baseline reprioritisation, and improved tax collection as core to its consolidation plan.
The February 2026 Budget will present detailed spending and revenue measures.