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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

Food insecurity should not stand in the way of education
2015-06-11

 

Every year, hundreds of students drop out of university due to financial difficulties – only to return to dire financial circumstances. It is only a few who manage to secure a bursary to fund their studies. These bursaries often pay only for academic and residential expenses, leaving students without additional funding for food.

The University of the Free State realized that up to 60% of its students were food insecure. Many of these students admitted to having to work after class to buy food or having to beg from friends. In 2011, the UFS launched the No Student Hungry Bursary Programme (NSH), which provides modest food bursaries to food insecure students. Currently, 130 students receive food bursaries from the programme to ensure they have one less thing to worry about while they are studying.

This year, at our Autumn Graduation Ceremony, six beneficiaries of the NSH Bursary Programme, received their degrees – an achievement all them feel they could not have reached was it not for the support by NSH.

For Tshililo Nethengwe, accounting student from Venda, her first year at university in 2012 was a daily battle. Although her parents managed to pay her study and accommodation fees, the meager monthly food allowance her parents could afford was not enough to last her the month.

“Every morning I used to tell myself not to think about food because I am here to study. Somehow, I still managed to get something to eat – even if it was just a few slices of bread a day. I was very determined to succeed in my studies, and NSH took away the burden of needing to ‘hustle’ and beg for food.”

Tshililo was one of six NSH recipients who received their degrees and is now doing her honours in B.Com Accounting.

“The NSH Bursary Programme invests in potential, and supports academic achievers who come from challenging backgrounds,” explains Vicky Simpson, co-ordinator of NSH.

“We promote the success of undergraduate students, enabling them to focus on their studies and not on where their next meal will come from. Successful graduates will have a positive and direct impact on our economy, different communities, and many households.”

The NSH food bursary is awarded to students on the basis of financial need, academic excellence, and the commitment to serve the community. We have helped more than 500 students since 2011, when Prof Jonathan Jansen, Vice-Chancellor and Rector, started NSH.

“These students share amazing stories that inspire us. Many had to endure hardship, but they managed to persevere, worked hard, and made it to university. The ability to buy a meal makes an enormous difference.”

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