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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 journey into self-discovery
2011-08-17

Sandy Little

The launch of the film and book Africa meets Africa: Pathways through the Interior at our university was a huge success.

It forms part of the The Africa meets Africa Project that is known for making connections between knowledge systems in pursuit of learning. It integrates amongst others beadwork and weaving with mathematics.

The film takes one through the Free State and some parts of the Northern Cape. The two actors, Mr Lerato Mokhitli and Ms Sandy Little, are both art students at Kovsies. During the trip they reveal some historic events not known to all. Prof. Jonathan Jansen, Vice-Chancellor and Rector, said: “Our history is a lot more complex and interesting than current texts allow. Much of what happened laid the foundations for trauma, and triumph is poorly understood. More so, is the history of the ordinary.”

The film and book are funded by National Heritage Council and FirstRand. It was launched in other provinces, among them KwaZulu-Natal. The Africa meets Africa Project aims to use the book in the Free State and Northern Cape in the Further Education and Training (FET) phase for educators and university students.

Prof. Jansen furthermore said: “I would definitely recommend the book with some additions, such as representation of excluded cultures. This would include white ethnographic histories and cultures and the intersections across black/white, African/European histories. I would also make the subject history compulsory to ensure that children would be exposed to our complex history.”

Ms Moipone Kabaoe, a third-year B.Soc.Sc. student at UFS, said: “The film was very informative and clarified some things. I also believe the actors have actually grown from the experience and they did a great job.”

Mrs Anna Mokhitli was ecstatic at the launch, as any proud mother would be. “I knew they were working so hard, but I never thought it would be something this big,” she said. Ms Helene Smuts, Director of Africa meets Africa, said: “You cannot learn until you start with what you know. This is the journey we took; now you must take your own.”
 

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