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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

New SRC Sport talks about campus pride
2014-10-21

Media Studies and Journalism student, Dominique de Gouveia, can attest to the fact that you need to take all the small steps before you make the giant leap.

As Residence Committee member for Sport since her first year, Dominique found the transition to the Student Representative Council (SRC) merely a case of now putting on the striped blazer. Having worked closely with Lourika Hugo, previous SRC Sport, there was not really much that she had to take grasp of.

“Our varsity has almost the same sport fixtures every year, so once you understand it, it should not be that difficult to follow through,” says Dominique confidently.

“You need to set goals in order to achieve them. I quickly realised that this is what I want to do. Sport is very big on our campus among the students and in my term I want other channels to realise the importance of sport.”

“The motto of previous SRC Sport, Tshepo Moli, was ‘transformation in sport’, which can indeed make a social impact on our varsity.”

“Through sport, our varsity can take pride in showing diversity.”

The variety of sports Dominique enjoys playing and watching, shows just how much she really loves what she is doing.

“My favourite sports have to be soccer and squash. But after watching the Varsity Netball this season, it made me wish that I had learnt how to play netball as far back as high school.”

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