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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

Water Collection Campaign distributes 3 500 bottles in Free State
2016-02-19

 Description: KL News 2016 02 19 Water Tags: KL News 2016 02 19 Water
The Muslim Students Association (MSA), along with the Gift of the Givers Foundation, collected 3 500 5l bottles of water that was distributed to disadvantaged areas within the Free State. From left is Muhammed Bhamjee, President of MSA, Emily Thomas, project manager for Gift of the Givers Foundation, and Grace Jansen, one of the generous donors. Photo: Charl Devenish.

The Muslim Student Association (MSA) at the University of the Free State (UFS) took it upon themselves to respond to the regional water crisis being experienced in the Free State. Under the leadership of Muhammed Bhamjee, President of MSA, the association started an initiative to collect water for the purpose of distributing it to disadvantaged areas within the Free State.

The drive started out as just a humble request within the student community, but it gained a great deal of attention from staff, departments, and students from the UFS. The response was overwhelming; 3 500 5l bottles of water were donated.

Amongst the donors were the Student Affairs department and Grace Jansen, wife of Prof Jonathan Jansen, Vice-Chancellor and Rector of the UFS. Mrs Jansen said it was important for her to make a contribution: “Even though we are receiving, we need to give as well. Wherever there is a need, we need to be involved.” She believes the project has the ability to grow and gain more attention and support. She believes it needs to grow across communities to solve such problems together.

Bhamjee explains that the MSA has had a relationship with Gift of the Givers Foundation, as they have been running the campaign for quite some time. “We just felt that it’s our responsibility to get involved. Even with the little we can do, every bit counts at the end of the day.” He added that there is also a need to support fellow students at the UFS Qwaqwa Campus.

Emily Thomas, project manager for Gift of the Givers Foundation, applauds the MSA initiative, and encourages students to continue collaborating with the foundation to assist with disaster situations.

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