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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

UFS deserves right to decisions
2010-08-15

Following visits of various youth formations to the University of the Free State’s (UFS) Rector and Vice-Chancellor, as well as the Dean of Student Affairs the past week, the university sees the need to remind all stakeholders and outside organisations that, although their views and inputs may be welcomed, the university reserves the right to make decisions regarding student matters and protect our students against suspected influences.

This reminder follows a series of meetings with organisations such as amongst others the Afriforum Youth and the ANC Youth League and subsequent media releases by some of these organisations, which often do not reflect correctly the nature and content of the discussions.

“While we welcome engagement with any organisation serving a non-racial, non-sexist and democratic agenda and regularly invite civil society organisations to dialogue with and assist us in student matters, we reserve the right to decide how to best serve interest of our students,” said Mr Rudi Buys, Dean of Student Affairs at the UFS.

“In our attempt to construct a value-driven, ethically sound and mature student governance environment, we also expect of stakeholders to ensure they engage us maturely and ethically at all times,” Mr Buys said.

“We will guard against organisations that may, under a guise of civil society engagement, wish to continue dysfunctional party-political cultures that fuel divisions and racial tensions among our students. In such cases where organisations by their conduct may prove themselves to do exactly that, we will have no other option but to refuse them entry to campus and set limits to their engagement of our students,” Mr Buys warned.

Media Release
Issued by: Lacea Loader
Director: Strategic Communication (actg.)
Tel: 051 401 2584
Cell: 083 645 2454
E-mail: loaderl@ufs.ac.za  
14 August 2010
 

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