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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

Universities now public spaces to exercise citizenship
2016-08-30

Description: Prof Lis Lange critical conversation Tags: Prof Lis Lange critical conversation

Prof Lis Lange believes universities have a critical
role to play in advancing democracy.
Photo: Thabo Kessah

In an attempt to promote common understanding on governance, leadership, and management processes at the University of the Free State (UFS), the Institute for Reconciliation and Social Justice (IRSJ) recently hosted a critical conversation on the Qwaqwa Campus that was facilitated by Vice-Rector: Academic, Prof Lis Lange.

Prof Lange’s presentation firstly focused on the role that universities play, and the expectations thereof.

“From ancient history, universities have always had a critical role to play in the broader society,” she said. “They have always been characterised by the circulation of knowledge and ideas at a global level. They have always ensured that students’ skills and knowledge are properly certified.”

According to her, universities have changed quite a bit over the centuries.

“Historically, universities used to cater for the chosen few, but they now allow multitudes to have access as well. In the early 20th century, women and foreigners, for example, were excluded. How they relate to the society has also changed. They also used to create certain types of knowledge – at one stage this knowledge was influenced by the church. Research is now produced across a large spectrum of human and scientific knowledge,” she said.

Prof Lange also added that universities now even have a responsibility to advance democracy and to respond to societal needs.

“Despite the various tensions and contradictions between management and academic staff, between management and students, and between academic staff and students, universities are now public spaces to exercise citizenship. They provide space for all to have the right to speak and to be heard. They provide space for all to have similar rights and responsibilities,’ she said, while breaking down all the governance, leadership and management structures of the UFS.

The conversation was concluded with a question and answer session, with students mainly asking about internal UFS processes.

The session was well received by students.

“I really loved the conversation, which to me, was about breaking the walls between the management and students so as to achieve the goal of an effective university. We need more of these dialogues,” said Noxola Tshabalala, a BA Psychology student.

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