The rand strengthened on Wednesday following the tabling of the 2026 Budget speech. Minister Enoch Godongwana announced tough proposals that will result in legislation changes to rein in unsustainable public sector practices that have resulted in wastage and runaway government debt.
The proposal comes as debt service costs are projected to increase to R432.4-billion in 2026 from R426-billion in 2025. Godongwana noted that government was spending
R6-billion more than last year on debt-service costs. This is money which the state could have channeled towards service delivery and job creation.
On the back of these announcements, the local currency traded at R15.85 against the US dollar, about 0.8% firmer from its previous close.
