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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. 

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“We have to be ashamed as South Africans in these xenophobic attacks” – Dr Khotso Mokhele
2015-04-17

In a show of solidarity, the staff, students, and graduates at the University of the Free State hosted various events to remember those victims of recent Xenophobia attacks in the country.

During the Autumn Graduation this week on the Bloemfontein Campus, a moment of silence was observed at the different ceremonies.

At the ceremonies, UFS Chancellor, Dr Khotso Mokhele, said these graduations are not only about the graduates’ success but also about keeping in mind those who are being killed in our own country because their countries could not uphold them.

“All of us as South Africans should show a displeasure at the xenophobic attacks that have taken place in the country. These acts are inhumane, and we have to be ashamed as South Africans.”

South Africa has been rocked these recent weeks by various flares of attacks on foreign nationals living in South Africa. Five people or more have died in these attacks.

The Institute for Reconciliation and Social Justice at the UFS also started hosting conversations to create awareness and understanding among the Kovsie community about xenophobia and the subsequent hate crimes.

In spite of diverging opinions, different approaches, and the complexities at the heart of the issue, everyone at these discussions agreed that xenophobia needs to be addressed urgently, not only by government, but also by every South African citizen.

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