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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

New infrastructure development project planned for the Bloemfontein Campus
2015-06-03

Illustration by Incline Architects

The university community can look forward to two new infrastructure development projects on the Bloemfontein Campus. The construction of a new parking area for staff and students accommodated in the new Education Building, will begin as early as June 2015.

The project includes 113 parking places for students and 16 covered parking places for staff. According to Nico Janse van Rensburg, Senior Director at University Estates, the project will be tackled using several green approaches. “The parking area’s lighting will be solar-powered. The surface will not be the normal paving stone but will permit the water to drain into the ground and in this way be more environmentally friendly and minimise the greenhouse effect,” he says.

Several indigenous trees will beautify the area.

The new parking area will be situated opposite the UFS Sasol library’s student parking area, between the cricket field and the present parking area at the Education Building.

The second project involves a new roof structure at the Bloemfontein Campus’s main entrance security gate.

Since August last year, the university has been enforcing rigorous entrance controls. No person can access any of the five entrances of the Bloemfontein Campus without a valid entrance card. Should individuals not have a card, they must access the campus at Gate 5 in DF Malherbe Avenue where a temporary access card will be issued to them.  Scanning for visitors and service providers is also available at Gate 1 (Nelson Mandela Drive) and Gate 5 (DF Malherbe Avenue).

The  roof structure at the main entrance will serve as a security point. Primarily, it will provide shelter from the elements for those staff manning the area.

Nico says that the plan is to complete the projects before the end of the year. The projects are currently in the planning phase.

“The gate may possibly be closed for a day or two but the main work will be done during weekends. Certain lanes may also be closed from time to time to ensure the safety of both users and construction workers,” says Nico.

Staff and students will be advised well in advance if and when the gate will be closed.

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