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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

UFS academic appointed to prestigious academy (ASSAf)
2014-10-07

Another academic of the University of the Free State (UFS), Prof Jeanet Conradie, professor in Chemistry, was invited as newly elected member of the Academy of Science of South Africa (ASSAf).Science and research, by which new concepts are discovered, is her great passion.

Her PhD degree in Chemistry, together with also a strong background in Physics, Computer Science, Mathematics and Applied Mathematics, influenced Prof Conradie’s choice of research interest and expertise to develop gradually in the direction of computational chemistry, which is a beautiful combination of chemistry and physics.

Computational chemistry uses quantum physical principles and mathematical methods to solve chemistry problems via high-performance computerised calculations. Results obtained can be used to predict and understand the behaviour of atoms and molecules in the real world. Chemical reactions and phenomena that are impossible or too dangerous to study experimentally, can also be studied by computational chemistry. Her research team also does experimental laboratory work to combine and compare with the computational analysis. Based on these results, new materials with specific properties are developed.

The Academy of Science of South Africa (ASSAf) aspires to be the apex organisation for science and scholarship in South Africa, recognised and connected both nationally and internationally. Through its membership which represents the collective voice of the most active scholars in all fields of scholarly enquiry, ASSAf aims to generate evidence-based solutions to national problems.

Prof Corli Witthuhn: Vice-Rector: Research at the UFS said: “The UFS is very proud of Prof Conradie, who is also the first female professor in the Department of Chemistry.  Jeanet is a highly productive researcher publishing in high-impact journals.  She has extensive international networks and collaborations, increasing the impact of her work even more.  We are currently awaiting the outcome of her application for NRF rating and believe that she will receive an excellent rating.”


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