Latest News Archive

Please select Category, Year, and then Month to display items
Previous Archive
20 February 2025 Photo Supplied
Prof Johan Coetzee
Prof Johan Coetzee, Chairperson: Department of Economics and Finance, University of the Free State.

Opinion article by Prof Johan Coetzee (MCBI, CMBE), Chairperson: Department of Economics and Finance, University of the Free State.

The Minister of Finance has not had it easy in 2025 and the budget speech not read yesterday pays testament to this. Postponing the speech to 12 March is unprecedented, and is due to the Government of National Unity (GNU) not reaching consensus on a way forward to tabling a budget. It seems as if the fallout was based largely on a proposed 2% increase to VAT that was rejected by two parties. I personally would not have supported this proposal either as the tax burden shifts disproportionally to the poor.

My initial response of the postponement was frustration and disappointment. But I soon realised that it is the outcome of a new government dispensation made up of many voices, and many dissenting at that, becoming more important. In principle, this is good for the nation, but unfortunate for us expecting the budget to be read on the day. It also does not necessarily send a good message to the markets, with the rand weakening by more than 1% within an hour of the announcement. There could also be knock-on effects that a later tabling will have on service delivery and operations of government. After some reflection, however, I have concluded that on balance, the decision to postpone is not as problematic as many have made it out to be over the past 24 hours. Clearly there are many balls to juggle by Minister Enoch Godongwana and many added complexities that have both national and international dimensions.

Lead-up to the budget

Internationally the strong nationalist policy drive by US President Donald Trump has already shown that the ‘make America great again’ mantra is alive and well as reflected in the intentional actions taken against South Africa since his second term started in January. We will see how this plays out over the coming months, but my view is that South Africa as a nation needs to be more deliberate in its policy agenda. We are at an inflection point where we must reflect on who we are as a nation and where we want to be down the line. We cannot afford to rely on handouts from other nations. There is more opportunity to this situation than threat, but we need intentional leadership to exploit it.

My big concern in the lead-up to the budget speech was that the minister would not take a firm stand on fighting the culture of non-compliance within state entities which has invariably led to unsustainable levels of irregular expenditure. For the 2023/24 financial year, the Auditor-General of South Africa reported that irregular expenditure totalled almost R50 billion, up from just over R27 billion the previous year. To put this into perspective, irregular expenditure equals approximately 2.2% of total government spending for the 2023/24 fiscal year. This might not seem significant stated as a percentage, but it has basically doubled since the previous year, and every preceding year before that too. Moreover, irregular expenditure equates to approximately 20% of the 2023/24 social grants budget and just about equals the 2024 National Student Financial Aid Scheme allocation. This is clearly a management failure and nothing seems to have been done about it over the years. As a result, the problem is escalating at an alarming rate. It is quite astounding that accountability management is not more explicit as it is clearly a very unpopular political message to send. But at what cost?

South African economy is not growing

To make matters worse, the South African economy is not growing both enough and fast enough. The most recent real GDP growth figure showed a decrease of 0.3% in the third quarter from the second quarter of 2024. Since 1994, the period with the highest annual rate of growth was a three-year period from 2005 to 2007 where growth exceeded 5% for each respective year. This period preceded the global financial crisis and since then, growth has struggled to reach 3% annually, doing so on only two occasions barring the 4.7% in 2021 which was not a true reflection of reality given the low base of the preceding year amid the COVID-19 pandemic. This is a major concern for the Minister, because with economic growth comes increased tax revenues, which in turn capacitates better budget management. Very simply, the more people spend; the more businesses sell; the larger the profit outcomes; the larger the tax revenue collections. If the economy grows, the fiscus collects more tax revenues without explicitly increasing tax rates. This built-in cyclical dynamic is simply not happening and creates a serious constraint on the ability of the Minister to manage deficits going forward.

Further to this of course is that as deficits are run, all things remaining constant, public debt increases. The public-debt-to-GDP ratio for 2023/24 already exceeds 72% which is higher than the generally accepted benchmark of 60% and almost 2.6 times what it was in 2008 (27.8%). This has resulted in the average interest on public debt approximating R1.1 billion a day, equating to about 22% of total tax revenues, or almost 20% of total government spending respectively. To put it differently, for every R1 government spends, 20 cents is first channelled to pay the interest on the debt before any spending occurs on roads, education, infrastructure, social grants and the like. These are deeply concerning figures in an economy with already high levels of unemployment and inequality.

Might be beginning of something better

There is a leadership void that cannot be ignored anymore. It needs to be intentional and deliberate. The GNU provides the platform to exploit ‘the best that South Africa has to offer’ as it promotes a broad-based and more inclusive political structure and played itself out yesterday. I welcome this in principle, but my concern is that political in-fighting will prevail and perverse politicking will trump working together in the best interests of the South African people. Although the postponement could be interpreted negatively in terms of the GNU not being able to find common ground, I think it is rather a sign of more rigorous engagement and the enablement of a collaborative environment amongst parties in the decision-making structures of the state. Remember this day as it might be the beginning of something better than what we are used to. 

News Archive

UFS Council approves a new Language Policy
2016-03-11

The Council of the University of the Free State (UFS) approved a new Language Policy with an overwhelming majority during its meeting held on the Qwaqwa Campus today (11 March 2016).

In the newly approved policy, the university commits to embed and enable a language-rich environment committed to multilingualism, with particular attention to Afrikaans, Sesotho, isiZulu, and other languages represented on the three campuses situated in Bloemfontein and Qwaqwa.

Based on the core values of inclusivity and multilingualism, the following principles in the newly approved policy were approved by the Council:

  1. English will be the primary medium of instruction at undergraduate and postgraduate level on the three campuses situated in Bloemfontein and Qwaqwa.
  2. Multilingualism will be supported among other activities by an expanded tutorial system especially designed for first-year students.
  3. In particular professional programmes such as teacher education and the training of students in Theology who wish to enter the ministry in traditional Afrikaans speaking churches, where there is clear market need, the parallel medium English-Afrikaans and Sesotho/Zulu continues. This arrangement must not undermine the values of inclusivity and diversity endorse by the UFS.
  4. The primary formal language of the university administration will be English with sufficient flexibility for the eventual practice of multilingualism across the university.
  5. Formal student life interactions would be in English, while multilingualism is encouraged in all social interactions.

“This is a major step forward for the UFS. I commend Council for their constructive and positive manner in which the discussion took place,” says Judge Ian van der Merwe, Chairperson of the UFS Council.

The university furthermore committed in the newly approved policy to:

  1. Ensuring that language is not a barrier to equity of access, opportunity and success in academic programmes or in access to university administration.
  2. Promoting the provision of academic literacy, especially in English, for all undergraduate students.
  3. Ensuring that language is not used or perceived as a tool for social exclusion of staff and/or students on any of its campuses.
  4. Promoting a pragmatic learning and administrative environment committed to and accommodative of linguistic diversity within the regional, national and international environments in which the UFS operates.       
  5. Contributing to the development of Sesotho and isiZulu as higher education language within the context of the needs of the university’s different campuses.
  6. The continuous development of Afrikaans as an academic language.
  7. Recognising and promoting South African Sign Language and Braille.

Today’s approval of a new policy comes after a mandate was given to the university management on 5 June 2015 by Council to conduct a review of the institutional Language Policy through a comprehensive process of consultation with all university stakeholders. A Language Committee was subsequently established by the University Management Committee (UMC) to undertake a comprehensive review of the parallel-medium policy, which was approved by Council on 6 June 2003. The committee also had to make recommendations on the way forward with respect to the university's Language Policy. During its meeting on 4 December 2015, Council adopted guidelines from the report of the Language Committee regarding the development of a new policy for the university.

The newly approved Language Policy will be phased in as from January 2017 according to an Implementation Plan.

Released by:
Lacea Loader (Director: Communication and Brand Management)
Email: news@ufs.ac.za

Related articles:

http://www.ufs.ac.za/templates/news-archive-item?news=6567 (26 November 2015)
http://www.ufs.ac.za/templates/news-archive-item?news=6540 (28 October 2015)
http://www.ufs.ac.za/templates/news-archive-item?news=6521 (20 October 2015)
http://www.ufs.ac.za/templates/news-archive-item?news=6469 (30 August 2015)
http://www.ufs.ac.za/templates/news-archive-item?news=6444 (25 August 2015)

 
Released by:
Lacea Loader (Director: Communication and Brand Management)
Telephone: +27(0)51 401 2584 | +27(0)83 645 2454
Email: news@ufs.ac.za | loaderl@ufs.ac.za
Fax: +27(0)51 444 6393

 

 


We use cookies to make interactions with our websites and services easy and meaningful. To better understand how they are used, read more about the UFS cookie policy. By continuing to use this site you are giving us your consent to do this.

Accept