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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 withdraws interdict against SASCO and ANCYL
2003-11-25

The Rector and Vice-Chancellor of the University of the Free State, Prof Frederick Fourie, announced today that a court order against the South African Students Congress (SASCO) and the ANC Youth League (ANCYL) had been withdrawn.

The withdrawal of the court order follows after a written statement by SASCO and the ANCYL in which they “unconditionally withdraw or retract statements threatening to render the institution ungovernable” and give their “commitment not to proceed with our threats to establish our own democratic SRC and occupy the current SRC offices”.

The UFS management obtained the court order in October after SASCO and the ANCYL refused to accept the outcome of the recent student referendum and SRC elections and threatened to disrupt the campus.

Prof Fourie also welcomed the undertaking by SASCO and the ANCYL to act in accordance with the prescribed procedures to resolve any grievance that the organisations may have, saying the UFS management remains committed to a constructive dialogue with all student organisations to manage a campus of diversity, tolerance and non-racialism.

In September students voted in a referendum to test support for a system of proportional representation (PR) for the SRC. A vast majority of students voted against the PR system, a system favoured by SASCO and the ANCYL..

Following allegations of fraud in the referendum, the UFS management asked the auditing firm PriceWaterhouseCoopers to conduct an independent audit of the ballot papers.

The auditors found that a total of 180 ballot papers out of 3513 – only 5.12% - of the votes cast - appeared to have been altered by means of erasing and then changing the student number.

According to the auditors, with all potentially altered and suspicious ballot papers excluded, a huge majority of 60,8% of students voted against the proportional representation system.

A few days after the referendum, the actual SRC election was held. However, at no stage were there any complaints from any organization about the integrity of the SRC election itself.

Despite this and the findings of the auditors, SASCO and the ANCYL refused to accept the outcome.

Law student Quintin du Plessis was elected SRC president. He welcomed the stance taken by SASCO and the ANCYL to pursue their objectives through the existing structures and said the SRC was always willing to engage with these organisations on issues of student governance.

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