The Johannesburg Stock Exchange (JSE) had gains on Wednesday and the rand became stronger, indicative that the markets welcomed the South African budget, driven by the avoidance of major tax increases.
During the speech, the rand traded at R15.89–R15.91 against the US dollar.
The JSE All Share Index also responded positively.
Everest Wealth said investors received well the decision to not raise VAT and to offer inflation-linked adjustments to personal income tax brackets (avoiding “bracket creep”).
The group also said Investors welcomed the focus on infrastructure spending and structural reforms to address logistics and energy bottlenecks.
The Nelson Mandela Bay Business Chamber welcomed the 2026 Budget, describing it “as a practical and reform-focused plan that brings cautious optimism for businesses in Nelson Mandela Bay.”
Denise van Huyssteen, Chief Executive Officer of the Nelson Mandela Bay Business Chamber, said “this is a budget aimed at steadying the country’s finances while creating space for growth, something that matters directly to local businesses and residents. One of the most important announcements for small businesses is the increase in the VAT registration threshold from R1 million to R2.3 million in annual turnover. This means many small and growing enterprises in Nelson Mandela Bay, from township-based traders to emerging manufacturers and service providers, will have more room to grow before facing the administrative and compliance burden of VAT registration.“
Business Unity South Africa (BUSA) said “confidence will depend on how the budget supports implementation, in infrastructure delivery, energy, logistics and municipal performance.”