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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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Newton Fellow at UFS focuses on land and labour
2017-10-28

Description: ' 000 Rory Pilossof Tags: Rory Pilossof 

Dr Rory Pilossof
Photo: Charl Devenish

Dr Rory Pilossof is a senior lecturer in economics at the University of the Free State (UFS), a Postdoctoral Fellow at the International Studies Group at UFS, and a Research Fellow at the University of Kent in the UK.

He became interested in his research field when he studied land reform and land issues in Zimbabwe for his PhD at the University of Sheffield. From there, his research interests have expanded to look at other issues connected to land, such as whiteness and labour.

Dr Pilossof's study field links up with the important issue of land reform in Southern Africa due to its past colonialism and post-colonial politics of land and land ownership. These intersect with a wide range of labour issues that are pressing in the region. He has a keen interest in elite transitions and changes in economic structure in Southern Africa since the 1960s.

Dr Pilossof was nominated to the South African Young Academy of Science in 2017, and received an NRF Y1 rating during 2017. He is also a member of the Amsterdam-based International Institute for Social History’s ‘Global Collaboratory on the History of Labour Relations’. He is a participant in the Leverhulme Trust-funded initiative ‘Comparative History of Political Engagement in Western and African Societies Programme’ at the University of Sheffield.

Dr Pilossof's primary research focuses on issues of land, labour and changing social and economic structures in Zimbabwe and South Africa. He is also interested in finding alternative ways of looking at change. To this end, he has studied various newspapers and periodicals in the region.

Currently, he spends most of his research time as part of a three-year British Academy-funded Advanced Newton Fellowship into labour relations and occupational structures. In future, he wants to expand his research in the labour field by looking at labour and migration in the region over the course of the 20th century.

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