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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

MSc student plans to FEED our hungry planet
2015-01-27

Photo: Hannes Pieterse

Since attending the 2014 Youth Ag-Summit in Canada, Lisa Coetzee – an MSc student in Plant Pathology in the Department of Plant Sciences at our university – developed a plan to address hunger:

FEED – Forum of Education, Empowerment and Development.

Coetzee, together with a junior lecturer at Plant Sciences, Marguerite Westcott, started this student association to tackle the issue of food insecurity head-on.

Education, empowerment and development “are keywords vital to the solutions to poverty. Hunger is an issue which is found in our own homes. One in every four South Africans is food insecure. Hunger kills more people every year than Aids, malaria and TB combined,” says Coetzee.

“This forum allows awareness to be raised about the hunger situation locally and globally. FEED is talking about hunger and it is assisting in reducing it by reaching out to communities which are in need.

“FEED is the generation which is going to make a difference in eradicating hunger,” Coetzee continues. “We want students to think about how they can feed the hungry through what they are studying”. For Coetzee it is a high priority to ensure that the youth are aware of the importance to feed our hungry planet in a sustainable way.

Her philosophy on relieving hunger and increasing food safety is to enhance the efficiency of crop production, ensure crop security and reduce mycotoxins in the food we eat.

During the 2014 summit, Coetzee was elected to represent the African delegates on the Youth Ag Summit Committee. Ever since, she has been enthusiastically active in the agricultural community. As 43% of the globe’s farmers are women, Coetzee also feels she acts as a voice for female farmers in South Africa.

An important lesson Coetzee has learned is that there is power in one person to make a change – that we should start small but think big.

If you would like to get involved in this project, contact Lisa Coetzee on +27(0)51 401 9681 or email coetzeela@ufs.ac.za.

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