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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

Traditional medicine can play important role in modern drugs discovery
2014-11-11

Indigenous knowledge possesses a great potential to improve science. Making use of this source may lead to advanced technological innovations. This is according to Dr Sechaba Bareetseng, UFS alumnus and Indigenous Knowledge Systems (IKS) Manager at the Council for Scientific and Industrial Research (CSIR).
Dr Bareetseng recently addressed the seventh annual IKS symposium on the Qwaqwa Campus.
“Interfacing indigenous and local knowledge with scientific knowledge has the potential of encouraging and developing inventions, especially in the pharmaceutical industry,” said Dr Bareetseng.
 
“Such interfacing can also enable access to both sets of knowledge without any discrimination whatsoever. It would also encourage co-existence that would improve understanding between the two.”
 
“Traditional medicine,” said Dr Bareetseng, “can play an extended role in modern drugs discovery as it is already happening in Botswana and New Zealand. These two countries are leading this wave of new thinking in as far as drug development is concerned.”
 
Dr Bareetseng also called on established researchers to start embracing the local communities into their research.
 
“Contemporary scientific research demands that local communities must co-author research conducted within and with them by the universities and research institutions. This would help in maintaining trust between the researchers and the communities that feel exploited. Regular feedback would also make communities feel part of the developments,” Dr Bareetseng argued.
 
He further called on the pharmaceutical companies specifically and researchers in general to convert valuable indigenous knowledge and resources into products and services of commercial value. “Plants, the ecosystem and indigenous knowledge must be preserved to provide a source of income for the local communities. Communities must also be protected from foreign exploitation of their intellectual property.”
 

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