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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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Now is the right time to talk, says Njabulo
2015-04-20


Njabulo Mabaso

Studying at a multicultural campus adds a lot of colour and spice towards every student’s experience, and it also offers some necessary challenges.

This belief is held by the Qwaqwa Campus SRC member responsible for RAG, Community Service & Dialogue, Njabulo Mabaso.

“Our multi-culturalism should be our uniting force, especially at this time in our country. What started as a one-person protest against the Cecil Rhodes statue at UCT should be used to broaden our view in relation to challenges that we are still facing as students and as a country. We need to talk more”, said Mabaso, a final-year BEd FET Languages student.

“Now is the right time for us to really talk about issues affecting us as young adults. Matters of collective interest like pregnancy rates, alcohol and substance abuse, sexism, crime, xenophobia, etc. need to be tackled”, added Mabaso, a weightlifting fanatic.

“As the student leadership, we intend working closely with community structures as we come from the very same communities. We must not wait for Mandela Day to do good.”

“My portfolio, together with Arts and Culture and Sports Affairs portfolios, can create that necessary social cohesion that we as students and our communities need so much.”

Mabaso said that all perceived taboos should be dealt with.

“Our programme this year encourages open dialogue. Nothing should still be treated as a ‘no-go area’ if we are to survive the scourge of HIV. We must talk openly, despite the cultural challenges that might restrict us. We must talk about homophobia. We must talk about rape. In fact, how many students – male and female – really understand what rape is? Does culture even recognise the ‘no’ factor associated with rape? It is important that we should not leave it until it is too late. We must not wait until it is his word against hers. We must deal with these matters now. The right time to engage is now”, he added.

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