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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

Farmers need to plan grazing better, says UFS expert
2017-02-21

Description: Prof HO de Waal Tags: Prof HO de Waal

Prof HO de Waal, affiliated researcher
at the University of the Free State,
says farmers should save grazing
during the summer months to have
fodder available in the winter and
early spring.
Photo: Theuns Botha,
Landbouweekblad

“Farmers should save veld during the summer months to have grazing available for animals especially in the winter and early spring. Farmers should also adjust livestock numbers timely and wisely according to the available material in the field,” says Prof HO de Waal, professional animal scientist and affiliated researcher in the Department of Animal, Wildlife and Grassland Sciences at the University of the Free State.

He offered this advice as a result of the sporadic and scattered (scant) rainfall of the past couple of summers. “In retrospect we know that this kind of precipitation started in about 2014 and has continued in subsequent summers. In February 2015, it was clear that a major fodder scarcity was developing.”

Existing research methods serve as source of current knowledge
Dr Herman Fouché (Agricultural Research Council) has conducted research on the impact of climate, especially rainfall, on the growth of grass. Sophisticated computer technology developed as far back as the 1980s to – through modelling – predicts the impact of climate on field production during the growing season.

The impact of climate, and more specifically rainfall, on field production has been known to animal and grazing scientists for a long time. Prof De Waal used the modelling results to determine the impact of rainfall on grass as a feeding source for animals.

“Information that emerged from this old research programme could therefore be applied directly to animal production,” says Prof De Waal.

Adjust livestock numbers to availability of grazing
In the summer rainfall areas of South Africa, grass usually grows from the end of August and early September. The growth process is dependent on the transfer of soil moisture, as well as on rainfall during the winter and early spring.

“Livestock numbers should be balanced throughout the year (according to the nutritional needs and production of the animals) with the availability of grazing material – be consistent, not only during certain seasons or when drought is imminent,” is Prof De Waal’s advice to farmers. “Farmers are also encouraged to carefully reduce the number of livestock on grazing and to rather focus their attention and limited resources on the remaining breeding herds (cows and ewes).”

“It is tragic, but unfortunately many farmers will not survive the effects of recent years. Similar climatic conditions will occur, with the same tragic consequences for man and beast. Better planning has to start now.” The assistance of private institutions, individuals, as well as the government, during the severe droughts is gratefully acknowledged.

Spineless cactus pear as solution for scarcity of animal feed
Prof De Waal says spineless cactus pears could be used as a feeding source during droughts. “The effects of a severe drought, or major animal-feed scarcity, are still prevalent in large parts of the subcontinent.” This may act as a catalyst to utilise spineless cactus pears as a feeding source and to be incorporated in the feed-flow programme for livestock on natural grazing.

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