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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

Kovsie students selected for prestigious study travel programme
2013-05-15

 

Golden Key International Honour Society members, Michael van Niekerk, Siobhan Canavan, Mpoi Makhetha and Cebolenkosi Sokhela, will travel to the USA and China, meeting the best in their career fields.
Photo: Hannes Pieterse
15 May 2013


They are amongst the top 15 percent of academic achievers at the university, and have been afforded the opportunity to travel abroad and meet with leading people in their fields of study.

Kovsie students Michael van Niekerk, Siobhan Canavan, Mpoi Makhetha and Cebolenkosi Sokhela, all members of the Golden Key International Honour Society, will travel to the USA and China. This trip is part of the International Scholar Laureate Program (ISLP) to learn how their career fields are practiced in another part of the world. The students are part of a select group of outstanding university students from across the world who will be given access to people, places and global perspectives in fields such as business, engineering, medicine, nursing, diplomacy and international relations.

Michael, a fourth-year MBChB student and SRC member of our Bloemfontein Campus, and Cebolenkosi, a third-year BSc Microbiology student will visit Washington, Philadelphia and New York in the USA. As part of the medicine delegation of the programme, they will visit clinics and hospitals to see how their study fields are practiced. Michael’s trip includes a visit to Johns Hopkins University in Baltimore, where he will meet representatives of the National Institute of Health, the largest source of funding for medical research in the world. He will also visit Harvard University in Massachusetts.

Mpoi, a third-year BSc Human Molecular Biology student, also forms part of the medicine delegation but will travel to China. "We will be exploring the ancient ways of healing versus the modern medical practices, exploring the medical systems of the country and meeting doctors and professors, visiting the rural areas, and of course, touring the best parts of China,” she said.

Siobhan, a third-year Media Studies and Journalism student, is part of the diplomacy and international relations delegation who will visit Beijing, Xi'an and Shanghai in China. "To me it's such an honour to be part of this programme,” she said. “It will give me the platform to not only represent who I am, but also my university and the values that the university has instilled in me. It allows me to be a part of something great that will benefit me in the end."

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