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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

From Architecture graduate to fashion sensation
2016-11-14

Description:Paul Whitehead  Tags: Paul Whitehead  longdesc=

Paul Whitehead, owner and founder of
Major John.
Photo: Supplied

Paul Whitehead never thought the small business he started in his hostel room at the University of the Free State (UFS) in Huis Abraham Fischer on the Bloemfontein Campus would develop into something of magnitude.

Paul, who completed his Honours degree in Architecture in 2015 at the UFS, is currently taking a gap year due to the rapid growth of his business. Major John started back in December 2012, with Love Warrior becoming Paul’s first outlet. In 2014 Paul started manufacturing his first series of timber bow ties and after that, sales started booming.

Supplier to 16 outlets in South Africa

“We currently supply 16 outlets throughout South Africa with a range of products such as timber bow ties, genuine leather suspenders and concrete and timber desk lamps, as well as other leather products,” Paul says.

He says that a new range of nine timber bow ties is launched every four months. “The timber is recycled and the fabric is handpicked from around the country to ensure quality, thus the bow ties are hand-crafted and unique,” Paul says.

Trust your gut feeling and believe in yourself

His main goal with the timber bow ties is to expand while the unique quality of the product is not compromised. “We are also in a process of expanding the range of our products in the exclusive market.”

Paul attributes his success to delivering excellent service to people who appreciate his pride and joy, his Major John collection. He encourages future entrepreneurs to listen to others’ advice, but to trust their own gut feeling and always believe in themselves.

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