National Treasury | Godongwana's rand headache

CAPE TOWN - Finance Minister Enoch Godongwana says the rand's sharp depreciation and the greylisting are major problems.

He announced his budget on Tuesday afternoon, outlining the spending priorities for Treasury.

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"The rand has got serious implications on our borrowing cost, also the implication that we do not know what the Reserve Bank will do in order to deal with that question -- they might raise interest rates," he said.

"It may affect us in two ways: First, in our gross borrowing numbers may increase, secondly our debt servicing costs may also increase. All of those things are material if the rand continues to be where it is."