Godongwana plays down big tax changes in SA budget

South African Finance Minister Enoch Godongwana ruled out any major tax changes in next month’s budget and stressed the importance of keeping fiscal consolidation on track.

“It’s not something we intend to to make major, substantial tax changes in the Feb. 25 budget, Godongwana told Bloomberg Television in an interview at the World Economic Forum in Davos, Switzerland, on Friday.

Read all our Davos coverage here.

The minister, who will enter a pre-budget quiet period for public comments on 26 January, also highlighted the need to maintain fiscal discipline.

“Fiscal consolidation is a necessary but insufficient condition for growth,” Godongwana said. Without fiscal consolidation, “it’s difficult to achieve all other associated growth-enhancing policies.”

South African assets are enjoying their best performance in years, with the stock market up, bond yields down and the rand rallying to its strongest levels against the dollar since 2022 as investors take stock of some recent positive developments.

Read: Rand edges closer to R16/$

These include a November budget update showing improved public finances, which Godongwana is expected to repeat in the upcoming annual budget, plus his backing for the central bank’s shift to a 3% inflation goal and a rating upgrade by S&P Global Ratings.

Read: SA takes global stage as credit upgrade confirms reform momentum

The improved outlook, as well as surging gold prices, have driven an almost 3% gain in the rand against the dollar this year, making it one of the top-performing currencies in the world tracked by Bloomberg.

South Africa is still in talks with Washington to secure a reduction in the 30% tariff that President Donald Trump has slapped on its exports to the US — the highest in sub-Saharan Africa.

“I’m quite confident we will have a deal with the United States of America on the trade front,” he said, without providing a time frame.

© 2026 Bloomberg

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