The agreement comes as South Africa’s ruling coalition is embroiled in a diplomatic crisis over laws that the US says discriminate against white farmers.

South Africa's cabinet was still meeting on the 2025 budget less than one hour before the finance minister was due to present it in parliament on Wednesday, a source from the Democratic Alliance party said,

The budget stand-off is unprecedented in South Africa, which has been ruled by a grand coalition since July when Ramaphosa’s African National Congress partnered with nine other parties after failing to win an outright majority for the first time since the fall of apartheid.

South African Finance Minister Enoch Godongwana may have to make changes to the national budget after parties that control more than half the seats in parliament rejected his plans to raise taxes.

South Africa's budget may be tweaked further as more talks between political parties will try to overcome differences over a contentious plan to raise value-added tax, the country's finance minister told Reuters.

Explore how South Africa's proposed 16% VAT rate stacks up against global standards and what it means for consumers.