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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

Enactus heeds call to be of service to its communities
2017-01-17

 Description: Enactus Tags: Enactus

The newly-elected vice president of Enactus
University of the Free State, Solomuzi Khati
(third from left) with members of Enactus on
the Qwaqwa Campus.
Photo: Thabo Kessah


The future of South Africa is in good hands if Enactus activities are anything to go by. Enactus is an international non-profit organisation bringing together student, academic and business leaders committed to using entrepreneurial action to improve lives. And the Qwaqwa Campus chapter is doing exactly that – changing lives.

Community engagement
This team of enthusiastic and energetic students have touched the Qwaqwa community in more ways than one through their community engagement activities. One such activity was when they adopted the Team Spirit Centre as their partner for development and empowerment.

“Up to now, the chapter has lived up to its purpose of assisting and uplifting the Qwaqwa community. As part of our programme, we identified a problem that we are currently helping to solve,” said Solomuzi Khati, the newly-elected vice president of Enactus University of the Free State.

Skills development
“We have realised that many centres housing orphaned and vulnerable children, like the Team Spirit in Makoane in Qwaqwa, are not sustainable. Our project introduced a business concept to the centre where we helped to plant vegetables so the owner Mrs Manthabeleng could then use and sell at a later stage,” he said. “In the process, students and Mrs Manthabeleng would develop various entrepreneurial, finance and business skills for future use on top of the centre generating income to sustain itself,” he added.

Appointment of Advisory Board
Khati also revealed Enactus was in the process of inviting business and community leaders into their Business Advisory Board. “This is a group of business people who are recruited to serve as mentors for our team. Typically, a Business Advisory Board is composed of 10-50 business leaders in the community. Board members can keep students informed of current business concerns and trends, provide financial or in-kind assistance for projects, critique annual reports and presentations, and provide networking opportunities.”

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