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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

Like Idols for scientists
2014-04-10

Kovsie student and scientist Karabelo Moloantoa recently represented the Free State in the South African finals of the FameLab competition during the Sci-Fest in Grahamstown.

Karabelo is a 24-year-old student doing his master’s in Biotechnology. He completed his Bachelor’s degree in Medical Microbiology, as well as his Honours degree in Biochemistry at Kovsies. His research is focused on Bioremediation of mine waste waters.

“FameLab is like the scientists Idols taking place annually,” says Karabelo.

“In the competition we are given three minutes to explain a science aspect to a non-science audience. There are 25 countries that participate. South Africa is the only African country participating.”

“I was called by one of my lecturers an hour before the local competition took place at the National Museum in Bloemfontein. I was actually still tired from playing volleyball the night before,” he explains. “I was unprepared and without slides, but I did my presentation.”

This was the first year Karabelo entered FameLab and although he was somewhat unprepared for the local competition in Bloemfontein, he was nominated to represent the Free State in Grahamstown at the Sci-Fest event. From the 18 semifinalists, Karabelo qualified to go the finals where the 9 finalists were competing to represent South Africa in the United Kingdom for the international finals.

“I did not win the UK trip, but I made it to the finals, which is an achievement as half of the semi-finalists could not make it to the finals,” says Karabelo.

“I feel like I have done well to represent the university and the province as a whole. It was amazing to speak in front of more than 800 people, delivering my presentation. I learnt a lot and improved my skills of communicating scientific aspects. I will definitely enter again next year.”

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