# South African budget delay over VAT hike shows cracks in coalition

> South Africa's national budget was postponed on Wednesday after a disagreement in the coalition cabinet over raising the VAT rate by two percentage points. The rand was last about 1% weaker against the dollar, and the 2052 government bond fell about 1 cent.

- Date: 2025-02-19 · published 2025-02-19T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/26377-south-african-budget-delay-over-vat-hike-shows-cracks-in-coalition
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Domestic political uncertainty can weaken the rand and raise import costs for feed buyers. The effect on feed prices is modest and depends on how quickly the budget is resolved.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/world/africa/south-african-budget-postponed-over-lack-agreement-parliament-says-2025-02-19/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.