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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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Inspiration from an Olympic Champion for Spring graduandi
2012-09-20

Photo: Hannes Pieterse
20 September 2012

The guest list for the Spring Graduation ceremony of the University of the Free State included an Olympic gold medallist, a former Miss South Africa finalist and the Prime Minister of a neigbouring country.

The new graduates could draw inspiration from Olympic swimming champion Chad le Clos, who was the guest speaker at the event. Also attending was the Prime Minister of Lesotho, the Honourable Thomas Thabane, who came to watch his grandson graduating from Kovsies. Sharing a stage with Le Clos was Rolene Strauss, a medical student, who was among the top five contestants at last year’s Miss South Africa competition.

Le Clos, who became a national hero in July when he won a gold medal in the 200 m butterfly at the Olympic Games by beating American swimming legend Michael Phelps, told new graduates to strive for the impossible. Giving them insight into his remarkable achievement, Le Clos told them nobody had expected him to beat Michael Phelps. “Even I thought it was impossible to achieve. Always have a goal and work towards it,” he told them and said his ambition was to build up swimming in South Africa. Le Clos said he hoped that by 2016 there would be more swimmers making South Africa proud.

Prof. Jonathan Jansen, Vice-Chancellor and Rector of the university, delivered an Olympic-inspired message. Quoting the motto of the modern Olympic Games, ‘faster, higher and stronger’, Prof. Jansen told the new graduates that they had to be better than those who came before them. “I expect my students in a troubled country to learn how to be different, faster, higher and stronger. Faster means efficiency; it means to be responsive to those in need."

Drawing lessons for the country from Le Clos' victory, Dr Khotso Mokhele, Chancellor of the University, told the graduates to choose optimism. Referring to the Marikana mine tragedy, Dr Mokhele said the country was far from taking the last stroke. “Even if it looks as if the curtain is down; remember that final stroke of Chad le Clos and how the great Michael Phelps was defeated.”
 

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