2025-02-19 12:51:04The South African rand depreciated to an over two-week low of 18.6 per USD, after Finance Minister Enoch Godongwana's eagerly awaited Annual Budget Speech was postponed. This marked the first such occurrence in three decades since the end of apartheid, underscoring growing divisions within the coalition government. The delay came after the Democratic Alliance (DA), the main partner in the coalition, announced earlier in the day that it would not support a budget that includes a VAT increase. Godongwana had been widely expected to announce a VAT hike of one or two percentage points, but the ANC relies on the DA's backing to pass the budget. South Africa faces a precarious fiscal situation, with weak economic growth and public spending outpacing revenue, fueled by rising debt-service obligations, expanding social programs, and ongoing support for state-owned enterprises. Global uncertainties and President Donald Trump's aggressive stance on South Africa add to the pressure.