South Africa's rand was firmer in early trade on Wednesday, ahead of the 2026 national budget speech to be delivered by the finance minister later in the day.

At 0615 GMT, the rand traded at 15.9175 against the dollar, about 0.4% firmer from its previous close.

Investors are keenly awaiting South Africa's Finance Minister Enoch Godongwana's budget speech at 1200 GMT for clues on the coalition government's fiscal priorities, its roadmap to tackle debt, and economic reforms.

Last year, the budget was postponed after coalition partners clashed over the minister's decision to raise the value-added tax by two percentage points.

ETM Analytics said expectations ahead of the Budget are high, as Godongwana has more fiscal room this year thanks to a stronger economy, higher tax revenues from buoyant commodity prices, and tax overruns.

"If the government prioritises less dissaving and more infrastructure spending, it will help strengthen the economy's backbone and ensure that the positive sentiment that has contributed to the ZAR’s impressive performance over the past six months continues for a while longer," said ETM Analytics in a research note. 

"Today's market response to the Budget will offer some insight into whether the ZAR might continue to gain in the weeks ahead."

South Africa's benchmark 2035 government bond was firm in early deals, as the yield fell 3.5 basis points to 7.905%.