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26 April 2022 | Story Dr Qinisani Qwabe
Dr Qinisani Qwabe
Dr Qinisani Qwabe

South Africa recently witnessed a catastrophic natural disaster that resulted in the loss of life, livelihoods, and infrastructural damage. This occurred in KwaZulu-Natal where hundreds of people lost their lives as a result of extensive flooding and mudslides. President Cyril Ramaphosa declared a national state of disaster to which we should all respond. Specific reference was made to the public and private sectors, as well as civil society.

While I applaud the various stakeholders that have extended a helping hand, my heart bleeds for the vulnerable groups whose voices remain unheard, even under normal circumstances. One cannot help but wonder if aid will reach the isolated regions that suffered the adverse effects of these heavy rains, or if all developmental efforts will be prioritised to certain economic hubs of the province such as the eThekwini Metro and the capital, uMgungundlovu.

KwaZulu-Natal is among the poorest provinces in the country. Corroborating this claim is a report that was released by Statistics South Africa earlier this year which reveals that about 52% of the province’s population are considered to be ‘poor’,and live at the lower end of the poverty line.

Drawing from my experiences of the rural communities of KwaZulu-Natal with whom I have worked, many suffer from the triple challenge of poverty, inequality, and unemployment, and rely on agriculture for their livelihood and to put food on the table. Their supplementary income is obtained from government support grants. The graphic scenes that have been shown on the media illustrate the devastating effects of the heavy rains in regions within the agricultural sector. Fields have been washed away, crops and livestock have been lost. This is happening when the province is still trying to resuscitate its economy after the widespread looting that took place in July last year, which had a calamitous effect on businesses and livelihoods.

While this is an injury mainly for the people of KwaZulu-Natal, it is my wish that we all join hands in contributing towards the restoration of livelihoods. In agreement with the president’s assertion, we can all play a part in rebuilding the province. This includes institutions of higher learning, particularly the Community Engagement Directorates whose mandate is to drive socioeconomic development to external communities.

Related article:
Opinion: KZN floods expose significant socio-economic and environmental vulnerabilities

KZN FLOODS

News Archive

Deputy Governor of SA Reserve Bank inspires students
2016-08-19

Description: Deputy Governor of SA Reserve Bank  Tags: Deputy Governor of SA Reserve Bank

Dr Lyndon du Plessis, Head of Department of Public
Administration and Management, Francois Groepe,
Deputy Governor of the South African Reserve Bank,
Prof Philippe Burger, Head of the
Department of Economics and B.Com Hons student,
Mosoeu Mabote.

Photo: Siobhan Canavan

Students from the Faculty of Economic and Management Sciences had the opportunity to learn from the best in the field when the Deputy Governor of the South African Reserve Bank, Francois Groepe, presented a seminar on the changing roles of central banks.

According to Groepe, we are currently living in challenging times as central banks are called on to do more.

“Central banks have limits, and these limits are not always understood,” he said on 11 August 2016 in the Equitas Auditorium on the Bloemfontein Campus.

How central banks contribute to inflation

There are two main generally-expected roles from central banks: the obvious one of providing bank notes and coins, and the other, maintaining price stability.

According to Groepe, the aim of keeping prices stable is to ensure easier planning for the future, and to assist the poor.

“The poor are the ones more vulnerable to higher inflation because they hardly have enough to get by,” he said.

A negative impact on monetary policies could affect the economy negatively. This is as a result of higher inflation caused by the increase in food prices.

Furthermore, the 12% government debt renders a negative yield in the economy.

The stability of finances in South Africa


Financial stability is not an end in itself, but, like price stability, is generally regarded as an important precondition for sustainable economic growth, development, and employment creation.

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