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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

Rag spreads the spirit of Ubuntu in Dinaweng informal settlement
2015-08-25

 

The Rag Committee teamed up with Prowess to create the first pop-up Street Store in Bloemfontein, as part of the Ubuntu Community Store Project. On 22 August 2015, the residents of Dinaweng had the opportunity to get hold of new and second-hand clothing free of charge. Soup and bread were also served to the children and the elders of the area, which is all too familiar to the media for its high unemployment, crime, and prostitution rates.

How do clothes represent Ubuntu?

From Tubatsi Moloi’s perspective, this is the team’s way of demonstrating that Ubuntu does not exist merely as a philosophy. The Rag Committee shows compassion to communities that lack resources essential to leading a dignified life.

“Ubuntu basically means uniting with the community by giving back and also thinking for those who are in need,” says the RAG Committee Executive.

Prowess, a Non-Profit Organisation (NPO) run by Kovsie students, initiated the concept which targets homeless and needy individuals unable to purchase clothing. Students from all 26 Kovsie residences and personnel have since supported the initiative by donating to the inaugural Street Store through representatives of Rag in residences.

The Street Store will continue to empower impoverished communities within the Mangaung Metro, and champion these human projects in collaboration with external stakeholders.
“We will also be working with Twee-Toring Church, although it has not yet been confirmed when we will pay them a visit,” said Tubatsi.

Providing basic needs such as clothing has the power to reinstate the dignity of people. Rag and Prowess have taken it upon themselves to practice the ideals of Ubuntu in an attempt to ensure that the less fortunate lead dignified lives.

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