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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. 

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Prof Luyt says young researchers should not allow circumstances to determine their future
2016-02-01

Description: Prof Riaan Luyt Tags: Prof Riaan Luyt

Prof Riaan Luyt, an NRF B-rated researcher
Photo: Supplied

Young researchers, who spend their life at a disadvantaged and rural campus like the University of the Free State’s Qwaqwa Campus, should not be deterred from achieving their dreams.

This is the view of Prof Riaan Luyt, former Assistant Dean in the Faculty of Natural and Agricultural Sciences, who achieved his B-rating by the National Research Foundation (NRF) late in 2015. This was by far the highest-ever rating on the Qwaqwa Campus.

“When I moved to the Qwaqwa Campus many years ago, having had the opportunity to do a post-doctoral fellowship in Polymer Science at the Leeds University in the United Kingdom, I was determined to get the Department of Chemistry off the ground, and to embark on serious research,” said Prof Luyt, who is now the Affiliated Professor in the Department of Chemistry and Research Associate Professor at the Centre for Advanced Materials, based at Qatar University.

“It was through sheer determination that I managed to obtain enough funds to equip a decent research laboratory. There were many obstacles over the years, but I managed to attract more and more postgraduate students and published more,” he said.

At first, Prof Luyt was not successful with his NRF-rating applications.

“My first couple of attempts to get rated produced no success. I was then awarded a C3-rating, which was later followed by C2 and then C1,” he added. “Getting a B-rating is the highlight of my research career. It shows that it can be done. Young researchers should not allow their past or present circumstances, or their work environment to stand on their way,” said Prof Luyt, who has supervised 38 master’s and doctoral students as well as 11 postdoctoral fellows. He has also published 185 papers in international and accredited journals.

Although abroad, Prof Luyt will continue to supervise eight postgraduate students at the Qwaqwa Campus.

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