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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

Gate re-opens to allow limited access
2014-01-29

The end of 2013 has marked the escalation of the university’s stranglehold on crime. With the launch of the B|Smart Campaign, the entire Kovsie community has been sharpening their safety senses.

Amidst this drive towards increased safety on the Bloemfontein Campus, the university has made an interim decision to close one of the gates. As from 1 October 2013, the gate at Badenhorst Street in Universitas near Roosmaryn residence has been closed for traffic.

As the safety initiative is gaining momentum, the matter of the closed gate has recently been reviewed. The university provisionally decided to re-open the gate to grant limited entry for vehicles and pedestrians, with immediate effect.

Only staff and students of the university, and legitimate visitors to the Bloemfontein Campus, will be allowed access. The gate will only be open during weekdays between:

  • 06:30 – 08:30 and
  • 16:00 – 18:00.

No entry will be allowed during weekends, as has been the case in the past.

“A student or staff card will ensure easy access and anybody else would have to validate their reason for entering,” explained Mokgawa Kobe, Director of Protection Services. Legitimate visitors will have to explain or prove their reason for wishing to enter the campus, he said. Absolutely no thoroughfare will be allowed.

Electronic access control is being implemented and as soon as this has been completed, the gate will be fully operational again.

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