South Africa's Godongwana 'Confident' on Having US Deal

Summary

South African Finance Minister Enoch Godongwana spoke with Bloomberg's Francine Lacqua at Davos about South Africa's 2026 economic outlook, geopolitical risks, institutional independence, and US trade negotiations. He said macroeconomic stability has improved, inflation targeting is at 3%, debt-to-GDP is stabilizing, and structural reforms are beginning to support growth. He expressed confidence that a trade deal with the United States will be reached and ruled out major tax changes in the upcoming budget.

• South Africa expects modest economic improvement from reforms and macro stability.
• Debt-to-GDP has stabilized and inflation targeting was reduced to 3%.
• Global geopolitical risks and trade wars remain key external threats.
• Institutional independence of Treasury and the central bank supports investor confidence.
• US-South Africa trade negotiations have progressed with proposals exchanged.
• The finance minister is confident a US trade deal will be reached.
• No major tax increases are planned in the next budget.
• Fiscal consolidation is described as necessary but not sufficient for growth.