South Africa’s rand strengthened on Friday, capping off a strong week following President Cyril Ramaphosa’s State of the Nation Address (SONA), in which he outlined a new wave of economic reforms aimed at driving growth and revitalizing key state-owned enterprises.

At 15:31 GMT, the rand traded at 18.37 against the U.S. dollar, gaining about 0.3% on the day and 1.8% since last Friday’s close. The local currency, which started the week on the back foot, has shown resilience, with analysts at ETM Analytics noting that the SONA did not weaken the rand but rather helped it maintain its positive momentum.

Ramaphosa’s address focused on ambitious plans to push South Africa’s economic growth above 3%, with targeted interventions in key sectors such as energy and logistics. The government’s commitment to supporting struggling state-owned enterprises like Eskom and Transnet, alongside increased infrastructure investment, has been well received by markets.

“The one thing the SONA did not do was weaken the ZAR. On the contrary, it has been a very strong week for the ZAR.

"It may have started the week on the defensive but appears to be ending it firmly on the front foot (and) now looks set to target levels closer to 18.4000 ahead of the weekend," said ETM Analytics in a research note.

Despite initial jitters earlier in the week, sparked by comments from U.S. President Donald Trump regarding funding cuts, the rand quickly rebounded. Ramaphosa responded firmly, statin in g that South Africa “will not be bullied,” reinforcing confidence in the country’s leadership and policy direction.

On the stock market, investor sentiment remained positive, with the Top-40 index closing about 0.5% higher. Meanwhile, South Africa’s benchmark 2030 government bond saw some volatility, with its yield rising slightly by 1.5 basis points to 9.065%.

With renewed optimism surrounding economic reforms and market confidence holding steady, South Africa’s financial outlook appears to be gaining momentum, positioning the rand and broader economy for continued stability and growth.