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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

UFS extends footprint abroad
2015-12-14

In its constant pursuit of research excellence, the UFS has this year performed well in mainly two areas.

Apart from the research done by the UFS on national level, e.g. the involvement of its researchers with the SKA telescope, the pioneering work they do with the satellite tracking of giraffes, as well as research on trauma, forgiveness and reconciliation – to name but a few of the research areas, the university also has a research focus abroad.

Japan, Europe, America and Botswana. These are just some of the places where academics from the university are involved in research abroad.

Japan

Dr Dirk Opperman, Senior Lecturer at the Department of Microbial, Biochemical and Food Biotechnology, and Carmien Tolmie, a PhD student in the same department, visited the Okinawa Institute of Science and Technology in Onna, Japan, during November and December 2014. During the visit, experiments were performed in the Microbiology and Biochemistry of Secondary Metabolite Unit of Dr Holger Jenke-Kodama.

This formed part of a larger NRF-funded project on carcinogenic toxins produced in certain Aspergillus fungi. These fungi infect food and feedstuff and are a big concern in developing countries because it may lead to severe economic losses. The research ultimately aims to find inhibitors to block the production of these fungal toxins.



Europe and America

In 2012, an international network was established in the frame of the FP7-PEOPLE-2011-IRSES programme, called hERG-related risk assessment of botanicals (hERGscreen). The South African group included Dr Susan Bonnet and Dr Anke Wilhelm, both from the UFS Department of Chemistry.

Extracts from more than 450 South African plant species have been investigated systematically to assess the potential cardiotoxic risk of commonly consumed botanicals and supplements. The idea of the project, funded by the European Commission, is to identify safety liabilities of botanicals.

Other international partners included the University of Innsbruck, National and Kapodistrian University of Athens, Biomedical Research Foundation of the Academy of Athens, University of Basel, University of Vienna, University of Florida, Universidade Federal do Rio Grande do Sul, Universidade Federal de Santa Catarina.

Botswana


A memorandum of understanding was signed between the UFS and Botho University in Botswana in September 2015, which will be valid for three years.

The agreement, includes student and staff exchange programmes, collaborative research, teaching and learning and community engagement activities, sharing of results, and PhD/ MPhil guidance.

Young researchers

Another research focus of the UFS is the development of its young researchers. In 2015, the UFS has delivered 13 Y-rated researchers. Ten of the researchers are from the Faculty of Natural and Agricultural Sciences and three from the Faculty of the Humanities. Three of them received an Y1 rating from the NRF.

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