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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

Student leaders reflect on post-Holocaust Germany and make connections to post-apartheid SA in study tour
2015-12-08

Njabulo Mabaso
Photo: Sam Styrax

“Our beloved South Africa (SA) has done quite a lot insofar as policy formulation to address the past imbalances is concerned. However, implementation has proven to be the biggest challenge.”

This is the view held by Nkosinathi Tshabalala, former Student Representative Council (SRC): Religious Affairs at Qwaqwa Campus of the University of the Free State (UFS), who was part of the Global Leadership Study Tour.

From 14 - 22 November 2015, a cohort of 37 outgoing SRC members studied through tours and seminars in Germany and Poland. The historical education trip was organised jointly by UFS Rector and Vice-Chancellor, Prof Jonathan Jansen, and the Student Affairs office. The study tour was supported and facilitated by the Johannesburg Holocaust and Genocide Centre.

Tshabalala added: “We know the thinking behind the likes of Reconstruction and Development Programme and the Truth and Reconciliation Commission, to mention only two. But what have these done to close the gap between the rich and the poor? What have they done to encourage proper and complete reconciliation? Germany paid for the damages which came as a result of the Holocaust, and it is time that we do the same.”

Mosa Leteane, former SRC President of the Bloemfontein Campus, echoed Tshabalala’s sentiments as they relate to the SA experience. “In light of the Rhodes Must Fall movement, one of the things that the youth was looking at were the symbols, what symbols mean, how symbols works as part of reparation and redress in a country that has come from a tragic past,” she said.

Leteane identified similarities between how our country and the two European nations have confronted the issue of trans-generational trauma and the reconciliation process, albeit in significantly differing circumstances.

“Within the first 20 years or so, it was almost like SA. Nobody wanted to talk about it, people just wanted to build the country.” Nonetheless, “the memorialisation and commemoration happened only for the last 20 years or so,” added Leteane.

Transformation of the European political, environmental, and social landscape took place only when students and the second generation began to challenge the status quo, and to lobby for transformation through the erection of memorials and monuments. Owing to the courage of the young generation, those countries were able to take meaningful steps towards transformation through an accurate narration and commemoration of history, which is a key factor in reconciliation.

Our students had the opportunity to conduct a comparative study of post-Holocaust Germany and post-apartheid South Africa in terms of how government and universities dealt with trans-generational trauma.

By being exposed to remnants of what used to be sites such as the Auschwitz-Birkenau concentration camp memorial in Poland, the young leaders were encouraged to continue their attempt at nation building and advance transformation and reconciliation.


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