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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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Afromontane Research Unit makes climate change inroads
2017-10-28



Description: Prof Mukwada Tags: Prof Mukwada

Prof Geofrey Mukwada

The Afromontane Research Unit (ARU) has recently made inroads in climate-change research. This has been achieved through work published by Professor Geofrey Mukwada and Professor Desmond Manatsa, whose research could make it possible to predict El Nino Southern Oscillation (ENSO) several months before its occurrence. 

Professor Manatsa is an ARU postdoctoral fellow currently collaborating with Professor Mukwada on an ongoing climate-change research project. The two experts noted that ENSO is one of the most important climate phenomena on earth, due to its ability to change the global atmospheric circulation, which in turn, influences temperature and precipitation across the world.

Climate change scientific breakthrough

“This is a tremendous breakthrough, because humanity as a whole has been looking for answers regarding the origins of climate-related hazards which are worsening, yet becoming more frequent and difficult to predict. In some cases, floods and droughts occur in the same season, and within the same geographical area. These extreme climate events are becoming more frequent, often leading to loss of life and threatening national economies and livelihoods,” said Professor Mukwada, coordinator of the ARU sub-theme on Living and Doing Business In Afromontane Environments.

During an interview with the Southern Times, Professor Manatsa revealed that the El Nino Southern Oscillation (ENSO) is initiated and sustained in the tropical Pacific, a fact that has eluded climate scientists for years. “It was an unresolved puzzle which limited the successful prediction of ENSO events with reasonable lead time. Climate scientists were only able to know with some degree of certainty that the event would occur once it had started, just a few months before its impacts were felt,” Professor Manatsa said.

Prof Manatsa is upbeat that a lot of headway has now been made towards unravelling the mystery of ENSO’s origin. “The necessity of the inclusion of the solar energy changes due to ozone alterations in the upper atmosphere should significantly impact on the realistic version of ENSO in climate models. This in turn should not only provide more accurate ENSO forecasts for the region, but a longer lead time for users to prepare for the event,” he said.

ENSO is a climate phenomenon based in the tropical Pacific Ocean. Its events bring good rains and even floods over most parts of the world in some years and droughts in others, depending on whether the phenomenon is in a warm or cold phase. The warm phase is referred to as El Nino, when the waters over the tropical east Pacific are heated up, but when cooled, it is termed La Nina. La Nina was responsible for the favourable rains over much of Southern Africa, including Zimbabwe, during the 2016/17 rainfall season. The El Nino occurrence a year before had devastating drought effects that was characterised by scorching heat and widespread water shortages. This work was published in a high-profile journal, Nature Scientific Reports

ARU is a flagship inter- and trans-disciplinary research programme focusing on the under-researched area of montane communities. It was launched in June 2015 and is based on the Qwaqwa Campus. 

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