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06 March 2020 | Story Valentino Ndaba | Photo Stephen Collett
Lesetja Kganyago, Governor of the South African Reserve Bank
Reserve Bank Governor, Lesetja Kganyago, presented a public lecture at the UFS on 4 March 2020.

With a 7% fiscal deficit on the Gross Domestic Product (GDP) projected by the National Treasury for the 2020/21 financial year, it would not take long to arrive at a dangerous level of debt at the rate that South Africa is borrowing. Although the South African Reserve Bank Governor, Lesetja Kganyago, does not consider a debt to GDP rate of 60% a disaster, he did express his concern regarding the country’s fiscal deficits being over 6% of the GDP.

Governor Kganyago presented a public lecture at the University of the Free State (UFS) on 4 March 2020, focusing on how we should use macro-economic policy and its role in our economic growth problem.

Unsustainable policies 
South Africa’s fiscal situation is not about tight monetary policy. According to the Governor: “Weak growth is endogenous in our fiscal problems. We cannot keep doing what we are doing and hope that growth will recover and save us. Growth is low, in large part, because of unsustainable policy.”

Avoiding an impending crisis
To address the problem, as a policymaker with more than 20 years’ experience, the Governor suggested that the recommendations made by Minister Tito Mboweni be taken into consideration. “The Minister of Finance, Tito Mboweni, is a man who says things that are true even when they are unpopular. His message is that we have to reduce spending and he is right to put this at the centre of our macro-economic debate,” said Governor Kganyago.

The state needs a radical economic turnaround strategy which is able to diminish the risk of losing market access and being forced to ask the International Monetary Fund for help. Governor Kganyago is positive that such a reformative tactic would go beyond monetary policy and ensure that the interest bill ceases to claim more of South Africa’s scarce resources. 

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Visiting UK professor presents research project at CRHED
2017-04-12

Description: ' AM Bathmaker CRHED  Tags: AM Bathmaker CRHED

Prof Ann-Marie Bathmaker, University of Birmingham,
during her presentation at the UFS.

Photo: Eugene Seegers

Paired Peers: Pathways to social mobility—Investing in the future? Moving through HE and into employment was recently presented to staff and postdoctoral students by Prof Ann-Marie Bathmaker, from the University of Birmingham, during her visit to South Africa while working on the Miratho Research Project with CRHED. Prof Bathmaker’s research interest particularly focuses on issues of equity, social mobility, and social class inequalities. Her presentation, the second in the Higher Education Research Seminar series presented by CRHED, was based on research resulting from a seven-year project in England.

In the UK, higher education (HE) is considered a key route to social mobility. Interest has grown in graduate destinations, particularly the prospects and obstacles faced by graduates from different social backgrounds. Paired Peers followed 70 students throughout their undergraduate studies and into the working world.

The project explored the processes of social mobility, highlighting different orientations and practices towards investing in the future, which ranged from investing in the present to cultural entrepreneurship for the future.

Participants were selected from two universities in Bristol, England. The research team focused on three key themes: “Getting In” (access to HE), “Getting On” (financial limitations, friendships, accommodation), and “Getting Out” (holiday work, internships, and finding suitable graduate employment).

Prof Bathmaker was able to highlight key research findings, many of which resonated with those attending. From the question-and-answer session, it was clear that many issues regarding inclusivity, whether across gender, ethnic, or language barriers, find their parallels in the South African context and can be of benefit to higher education practitioners here.

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