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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

A mind shift needed in agriculture in Africa
2010-12-02

Prof. Frans Swanepoel (Centre for Sustainable Agriculture and Rural Development), Prof. Monty Jones, Prof. Driekie Hay (Vice-Rector: Teaching and Learning), Prof. Alice Pell (Cornell University, USA), and Prof. Izak Groenewald (Director of the Centre for Sustainable Agriculture and Rural Development) at the inaugural lecture of Prof. Jones as Professor Extraordinary. 
- Photo: Stephen Collett

Food stability is essential for stability in all countries around the world. Radical interventions, and not incremental changes, are necessary to end hunger and poverty in Africa, said Prof. Monty Jones, Professor Extraordinary in the Centre for Sustainable Agriculture and Rural Development at the University of the Free State (UFS), in his inaugural lecture.

Prof. Jones is Executive Director of the Forum for Agricultural Research in Africa (FARA) and Chairperson of the Global Forum on Agricultural Research (GFAR). In his lecture he focused on the contribution of agricultural research to development and food security in Sub- Saharan Africa.

He said Africa is not known for good politics to promote food production. Countries under invest in research, education, knowledge management, agriculture finance, etc. There is also uncertain and restricted access to land. He specially mentioned women’s access.

Sub- Sahara Africa moved from being a net exporter of food to a net importer of food (28%). “Government spending on agriculture and transport went down and stagnated. A mind shift is necessary. Africa has the resources. We must take advantage of the opportunities,” he said, and added: “Africa must create visionary and inspirational leaders and managers who can drive developmental issues.”

Prof. Jones emphasised that fact that nutritional security is just as important as food security. The number of hungry people has grown to more than a billion in 2009. Hunger is the most severe in the developing world, especially Africa. Added to this is Africa’s population growth that i s also higher than the rest of the world. It is estimated that the demand for food in Africa will double in the next 40 years.

“Research and development alone cannot win the war against hunger in Africa. Everyone has a role to play,” he said.
– Leatitia Pienaar.

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