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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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Department of Political Studies and Governance involved in regional seminar on peace and security in Southern Africa
2012-09-26

Attending the Lusaka seminar was from the left: Prof. Hussein Solomon; Prof. Virgil Hawkins from Osaka University and main organiser of the seminar; and Prof. Theo Neethling.
26 September 2012

Two staff members from the Department of Political Studies and Governance, Prof. Hussein Solomon and Prof. Theo Neethling, were recently invited by the Osaka University in Japan to participate in a regional seminar in Lusaka, Zambia, on multinational peacekeeping and peace enforcement in Southern Africa.

The seminar was organised by the Southern African Centre for Collaboration on Peace and Security funded by the Japan Society for the Promotion of Science. Prof. Solomon presented a paper on the establishment of the Southern African contingent of the African Union’s African Standby Force, while Prof. Neethling presented his paper on United Nations peacekeeping operations in the war-ravaged eastern parts of the Democratic Republic of Congo.

The participation of Prof. Solomon, Senior Professor, and Prof. Neethling, Head of the Department of Political Studies and Governance, comes from a cooperation agreement between Osaka University’s School for International Public Policy (OSIPP) and the Faculty of Humanities at the University of the Free State. The agreement covers issues like joint collaboration projects, the exchange of staff and senior students and joint conferences. One of the key joint areas lay in the Southern African Centre for Peace and Security Studies, a consortium of several Southern African universities with Osaka University and the University of the Free State as its key pillars.

Other universities include the University of Zambia, Zambian Open University, University of Dar es Salaam, Mozambique-Tanzania Centre for Foreign Relations. Academics from other universities in the region, like Nzuzu University in Malawi, University of Botswana, University of South Africa, Stellenbosch University, University of Zimbabwe, are all in the network.

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