South African Finance Minister Enoch Godongwana ruled out any major tax changes in next month’s budget and stressed the importance of keeping fiscal consolidation on track.

“It’s not something we intend; making substantial” tax changes in the budget, Godongwana told Bloomberg Television in an interview at the World Economic Forum in Davos, Switzerland on Friday.

South African assets are enjoying their best performance in years, with the stock market up, bond yields down and the rand rallying to its strongest levels against the dollar since 2022 as investors take stock of some recent positive developments.

These include a November budget update showing improved public finances, which Godongwana is expected to repeat in the annual budget next month, plus his backing for the central bank’s shift to a 3% inflation goal and a rating upgrade by S&P Global Ratings.

The improved outlook, as well as surging gold prices, have driven an almost 3% gain in the rand against the dollar this year – making it one of the top performing currencies in the world tracked by Bloomberg.

South Africa is still in talks with Washington to secure a reduction in the 30% tariff that President Donald Trump has slapped on its exports to the US – the highest in sub-Saharan Africa, Godongwana said.

“I’m quite confident we will have a deal with the United States of America on the trade front,” he said, without providing a time frame.