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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

Environmental management – the answer to a sustainable green economy
2014-11-03



From the left are: Tshepo Moremi (Deputy Director-General), Mamotena Puleni (Personal Assistant to the Deputy Director-General) and Prof Maitland Seaman (Head of Department: Centre for Environmental Management).

Photo: Ifa Tshishonge

As part of celebrating 20 years of existence, the Centre for Environmental Management at the University of the Free State (UFS) hosted a public lecture themed, ‘The Future of Environmental Management’. Mr Tshepo Moremi, Deputy Director-General of the Department of Environmental Affairs and Tourism (Free State), portfolio Environment, Conservation and Tourism, delivered this lecture.

Mr Moremi said, “The environmental performance of South Africa must be seen in the context of our history and the country’s transition. South Africa has taken the lead in being a responsible global citizen, and we also participate in international projects in this field.”

South Africa hosts one of the richest biodiversities in the world. However, the country’s economy is still very energy - and carbon intensive.

“According to the World Health Organisation, approximately 16% of all deaths and one-third of diseases in children under the age of five years are environmentally related. Inadequate sanitation and indoor pollution are key factors,” Mr Moremi said.

“Academic institutions like the UFS and the government need to take the role of equipping citizens with skills and training so that we can overcome the challenges and seize opportunities related to the environment.

“Financing mechanisms for projects related to environmental sustainability were introduced in 2011. However, we still lack skilled capacity to run these projects smoothly and to use international and national funding strategically.

“Looking forward and responding to our challenges, it is vital that we transform our economy to be an international competitor and job-creation hub, and to be sustainably climate resilient, as outlined by the National Development Plan. Minimum standards will also be put in place to regulate emissions and monitor air quality. The sustainability of society’s well-being is important to the long-term role of environmental management in boosting our socio-economic status as a nation,” Mr Moremi said.

He emphasised that it must not only be about conserving and preserving. “Our people should benefit economically and socially,” he said.

Mr Moremi encouraged the audience to defend ideas that protect our non-speaking natural resources. “Let’s all do what we can and rise to this advocacy challenge,” he added. He also expressed his gratitude towards the university for honouring him during such a celebration and for working together in advocating for environmental issues.

The Centre for Environmental Management also hosted a strategic colloquium, discussing issues such as demography, resources, climate, water, environmental management, academic pursuance, as well as curriculum and the role of professional registration which may have an influence on the nature of its programmes.

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