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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. 

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“Stick to your dreams, reach your destiny,” Zahara tells class of 2012
2012-09-07

Foto: Thabo Kessah
5 September 2012

Grade 12 learners from more than 30 schools in the Eastern Free State recently attended the Qwaqwa Campus Open Day where they were addressed by singer Zahara. She entertained the learners with hits like Loliwe, Umthwalo and Destiny and she advised the Class of 2012 to stick to their dreams if they wanted to reach their destinies. The Vice-Rector: External Relations, Dr Choice Makhetha, also addressed the learners and told the packed Rolihlahla Mandela Hall never to allow their disadvantaged backgrounds to influence their futures. “I was also in your shoes years ago. I know how it feels to come from a poor family. But I am here today and proud to say I am part of the leadership of one of the best universities in the world,” said Dr Makhetha. Learners then visited various faculties and departments to see what they offered and also had the opportunity to apply for placement in the 2013 academic year.

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