GNU set to seal Budget deal

South Africa’s Democratic Alliance, the second-biggest group in the country’s coalition government, sees a “good chance” of an agreement on the nation’s budget this week, the party’s spokesman said. The rand strengthened.

The DA and its larger government partner, the African National Congress, have been at an impasse over Finance Minister Enoch Godongwana’s proposal to raise the value-added tax.

The DA has threatened to withhold its support for the budget as it moves through parliament unless it has more of a say over economic policy.

South African President Cyril Ramaphosa also said overnight that he’s confident the coalition partners “can develop a shared approach to unlock inclusive growth, job creation and a secure fiscal future,” according to a post on X.

We remain confident that as GNU partners, we can develop a shared approach to unlock inclusive growth, job creation and a secure fiscal future, now.

The rand strengthened 0.8% to 18.28 per dollar by 7:47 a.m. in Johannesburg, reversing some of the loss it suffered on Friday when the DA escalated its dispute with the ANC over the budget.