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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

Kovsie first-years get ready for great things
2011-01-16

Prof. Jonathan Jansen (Vice-Chancellor and Rector of the UFS) with two of the first-year students.
- Photo: Lize-Mare Smit

“One thing I can assure you: here academic work comes first.” This was how Prof. Jonathan Jansen, Vice-Chancellor and Rector of the University of the Free State (UFS), set first-years parents’ minds at ease during the welcoming events of the first-years on the Main Campus the past weekend. 

The welcoming events, which took place over two days, were attended by a total of 7 000 first-years and their parents from across the country. 
 
Prof. Jansen also told the students and their parents that they were at the best place, by sharing his excitement about all the new students who decided to come and study at Kovsies. “You have overcome major obstacles in order to be here today,” he said at the welcoming.
 
With more than 90% new students who comply with admission requirements, this group of students promises to become true leaders of South Africa.
 
Prof. Jansen shared a few plans for the year with the audience. “As in 2010, we shall once again send a group of first-year students to universities later this year, not only in America, but amongst others also to Europe and Asian countries, amongst others, to learn more about different cultures and diversity. We aim to double the number of students who will be selected to 150 this year.” We can also look forward to, amongst others, a brand-new entrance and gymnasium for the Main Campus and four new hostels, two of which will be built on the Qwaqwa Campus.
 
Prof. Jansen emphasised the seriousness with which academic work had to be regarded, by referring to the compulsory class attendance that was implemented last year. “Since the inception of this arrangement in 2010, there was a 30% increase in students’ pass rate,” he said.
 
This year, for the first time, honorary awards were also given to young people who had rendered an exceptional service to the community. Anél Kleingeld, a 10-year-old learner from Trompsburg, and Mpho Phahlo from the UFS’s Unit for Students with Disabilities proudly received these awards. Anél made a remarkable contribution to George’s community when she encouraged learners from her` school to collect and deliver 700 litres of water for this community. Mpho made a point of assisting and motivating persons with disabilities at Kovsies to work hard on a daily basis.
 
 

 

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