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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. 

News Archive

Research chair into Higher Education gets boost for five more years
2017-11-21

 Description: Prof Melanie Walker, Research chair into Higher Education gets boost for five more years Tags: Prof Melanie Walker, Research chair into Higher Education gets boost for five more years

Prof Melanie Walker, Director of the Centre for Research on
Higher Education and Development (CRHED).
Photo: Supplied

The research Chair in Higher Education and Human Development within the Centre for Research on Higher Education and Development (CRHED) at the University of the Free State has secured funding for another five years. It follows a favourable evaluation by the South African Research Chairs Initiative (SARChI) of the research project at the UFS. 

The Director of the Centre, Prof Melanie Walker, says she is delighted by the recognition of the Chair's hard work and significant productivity. “This new round of funding secures the centre and its activities for the next five years.” 

Under the auspices of the Chair, research is conducted on higher education, inequalities and social justice, and how or if universities foster the human capabilities and aspirations of students. In essence, the research studies whether higher education makes a difference to the lives of students, their families and communities. Prof Walker says the Chair's projects look at issues of access, participation and transitions into work, as well as gender, race and social class. The research uses quantitative and qualitative methods and includes a strand of participatory research projects with students.

Prof Walker says through the Chair research project, and the Centre, researchers have developed extensive international links and produced international quality research and publications. “We foster high-quality PhD graduates as a new generation of social science academics.” The Chair has in the first five years produced 10 PhDs and four master’s students. 

The project in the next five years will continue with its focus on higher education and human development research. Prof Walker says all the research efforts seek to contribute to more justice in society and universities and to contribute to debates, policy and practices in higher education and a scholarly knowledge base. 

The Research Chairs Initiative aims to improve the research capacity at public universities to produce high-quality postgraduate students, research and innovative outputs. The assessors looked at features such as the number of students the research entity had trained and how many publications the research team had produced. 

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