Investor confidence takes a knock

The National Assembly passed the fiscal framework that includes a 0.5% value-added tax (VAT) increase that will kick in on 1 May – but the rand lost almost 30c during the day, taking it to R18.80/dollar.

- Ina Opperman

It was clear that investor confidence in South Africa took a knock, with bond yields jumping by almost 40 basis points.

With the fiscal framework passed, consumers can now get ready to pay 0.5% more VAT, while a few more food items will be added to the zero-rated basket.