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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

Schoolgirl builds giant Gingerbread house for Children’s Wing Project
2015-11-13


Professor André Venter, Head: Department of Paediatrics and Child Health, Morgan Pelser, and Tertia de Bruin, Project Coordinator: Children’s Wing: UFS Marketing.
Photo: Leonie Bolleurs.

“You have to dream before your dreams can come true.” These words rang true for Morgan Pelser from Bloemfontein when she fulfilled her wish on Tuesday 3 November 2015 at the launch of her ‘big and real’ Gingerbread house.

 

Pelser, 13, said she had the idea of building the gingerbread house over six months ago and began working tirelessly, raising funds for the project. She intends to donate the money raised from this initiative to the Children’s Wing Project at Pelonomi and Universitas Hospitals. It was back in Grade 4 when she had the opportunity to tour through the ICU, neonatal and paediatric wards of the two hospitals, that she saw the need for better equipment and facilities. Pelser hopes to raise R200 000 through the initiative.

 

Professor André Venter, Head: Department of Paediatrics and Child Health at the University of the Free State, said he was greatly humbled by the perseverance and passion shown by Morgan in executing her dream. “I work with children, so I know how resilient they are, but seeing this is amazing. We tend to give up so easily,” he said. He went on to say that the money will be greatly appreciated, as it will be used to provide health-care facilities for children at both hospitals.

 

The launch of the gingerbread house was a huge success. The house is currently outside Coco C at the Loch Logan Waterfront. Members of the public are encouraged to see and taste the giant house, where they can leave a message on the inside of the house. A minimum fee of R20 is requested.

 

Professor André Venter, Head: Department of Paediatrics and Child Health, Morgan Pelser, and Tertia de Bruin, Project Coordinator: Children’s Wing: UFS-Marketing.

Photo: Leonie Bolleurs.

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