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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

Good quality wheat essential for bread production
2016-11-29

Description: Robbie Lindeque Tags: Robbie Lindeque 

Robert Lindeque, wheat breeder at the ARC
Small Grain Institute in Bethlehem.
Photo: Supplied

“Wheat quality, specifically grain protein, is of the most crucial components determining the profitability of wheat farmers.”

This is according to Robbie Lindeque, wheat breeder at the ARC Small Grain Institute in Bethlehem. As a wheat breeder, one of his primary aims is to make a contribution to sustainable wheat production in the inland of South Africa.

A closer analysis of bread wheat protein

With his PHD thesis, "Protein quality versus quantity in South African commercial bread wheat cultivars”, Lindeque answered critical questions regarding the South African wheat industry. The major question of his PhD, which he received on 30 June 2016, was whether protein quality could compensate for protein quantity as a measure of bread quality in South Africa.

The three main wheat-producing areas in South Africa, the dryland summer rainfall region (Free State), dryland winter rainfall region (Western Cape), and the cooler irrigation regions (Northern Cape), were used as a starting point for the study.

Proteins are essential for the baking of good quality bread. Worldwide, the utilisation of wheat flour shipments in the baking industry is determined by the protein proportion of the shipment.

Lindeque says the aim of his thesis was to determine whether a closer analysis of bread wheat protein would provide a better indication of good or bad bread quality. “The conclusion from this study was that both protein quantity and protein quality from all three production areas in South Africa varies constantly in accuracy regarding the estimation of bread volume, mainly as a result of environmental factors,” says Lindeque.

Results relevant to the wheat industry

In 2012, application was made to the Winter Cereal Trust for funding of the project. After funding was approved – thus making the Winter Cereal Trust the main partner – seed samples were collected from the 2012 and 2013 national cultivar adaptation trials.

“After this, the seed underwent protein and flour analyses, which added a third year to the study, with the fourth year consisting of statistical processing and documenting of the results,” says Lindeque.

Funding by the Winter Cereals Trust contributed to the fact that the study constantly attempted to keep issues and results as relevant as possible to the wheat industry.

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