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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

Three minutes for research
2015-08-19

Sixty-three researchers, three minutes each. This is the Three-Minute-Thesis competition (3MT) for master’s and doctoral students countrywide, presented by the Postgraduate School at the University of the Free State.

For the first time, this international competition will be presented on a national level in South Africa, with students from more than ten of the most prominent universities in the country taking part. During the competition, each researcher has to give a presentation on his/her research in three minutes.

Mr Katleho Nyaile, the competition organiser, says the 3MT is part of the Postgraduate School’s initiative to highlight and to boost postgraduate research.

The 3MT competition originated at the University of Queensland, Australia. Since its inception in 2010, it has developed into an international trend. Currently, the 3MT is presented in Australia, the USA, and the UK.

For the competition, participants are given only three minutes to explain their research. In this short time, they have to explain not only the problem and the methodology, but also why this research is important. Participants are allowed to make use of only one piece of static imaging material for support.

“It is not only great fun, but also a learning opportunity for the researchers. The competition supports the capacity of the researchers to convey the essence of their theses effectively. This is something that researchers sometimes find very difficult.”

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