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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

‘Leadership is formed through ethical behaviour’
2012-08-20

Mr Edward Kieswetter
20 August 2012

“Being ethical is not about what we can do, it is about what we ought to do.” This is according to Mr Edward Kieswetter, Group Executive of Alexander Forbes Limited. During his lecture to MBA students in the Business School, Mr Kieswetter allowed the audience to engage in a discussion about ethics and leadership in the business world. Mr Kieswetter is also Vice-Chairperson of the UFS Council.

Part of the lecture was discussing South Africa as a country that was not born in ethics. Mr Kieswetter commented that although context was is very important in making decisions, South African people tended to, for example, and “feed on corruption, instead of acting actively against it”. Questions about South Africa’s ethical foundation were raised. Mr Kieswetter explained that one of the greatest challenges with the South Africans was to help them understand that a person always had a choice. “If you have to compromise on your own values, you are not doing anybody justice.”

Ethics can promote common and social goals if they are not determined by what people feel and strive to reach beyond the barriers that religious beliefs put up. He shared of his life’s most valuable lessons learned about people in leadership positions. “A great leader has incredible self-awareness and displays a huge amount of humility.” He said that in life it was not about being perfect; it was rather about being authentic, even in challenging times where the outcome might affect the current situation negatively. “My greatest successes came from lessons I learned in making mistakes and growing from them.

“If you have nothing to die for, then what is there to live for?” Mr Kieswetter said when asked whether he would compromise his financial position if he did not agree with the ethics of the company he worked for. “By constantly complaining instead of progressing, we are giving up our power to change, and that is a scary thing for South Africa as a developing country.” 
 

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