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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

Because you can do the undoable
2014-05-30


Gabriela Schroder

Since visiting the University of Vermont in 2011 as an F1 student and attending the Stanford Sophomore College the year after, Gabriela Schroder has never stopped dreaming and working towards her objectives.

During the autumn graduation earlier in 2014, Gabriela received the Dean’s Medal. This award goes to the final-year student who achieves the best results in respect of a first Bachelor’s degree in the Faculty of Natural and Agricultural Sciences. Her triumph did not end there. In addition, she also received the Senate’s Medal and Prize which is awarded to the best Bachelor’s degree student at the university. Across all the faculties of our university. 

“Although these medals came to me as a surprise, it really was a reward to my hard work and toil throughout my undergraduate years,” she said. Schroder was also honoured and introduced by Prof Jonathan Jansen on stage at this year’s Kovsie Open Day, along with other top achieving students. She believes that anybody can reach their goals if they are willing to make sacrifices and through focus, hard work and determination. 

One of her favourite quotes that motives her is of Albert Einstein, “You really understand something if you can explain it to your grandmother.” In the process of learning, one must break down what they are working towards. She advises to make the knowledge your own – this develops a better insight into the concept. In the end, that which is regarded as complex is originally built from simple principles.

Schroder is currently studying towards her BSc Honours in Biochemistry at Kovsies. She has her sights set on a master’s degree in the near future.

“To my fellow Kovsies and beyond: seize your opportunities. Don’t be afraid to think the unthinkable – because you can do the undoable,” she added.

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