risks to the inflation outlook as well. in particular, the current high levels of consumption expenditure, balance of payments imbalances and higher than expected producer prices pose an even greater threat to the low inflationary environment we have been enjoying in south africa. these developments demand vigilance on the part of the bank if the hard - fought economic gains are to be sustained. the bank ’ s continued contribution to the growth process, therefore, is to maintain a low inflation environment and contribute towards a sound financial system. although some maintain that the recent interest rate increase will undermine growth, we are of the considered view essential for the maintenance of the stable framework for growth. but low inflation or macroeconomic stability on its own does not guarantee higher growth. the government ’ s accelerated shared growth initiative of south africa ( asgisa ) plans to achieve and sustain a higher growth rate through an ambitious investment programme which focuses on improving and expanding the infrastructure of the economy. the government has highlighted the shortage of skilled labour as one of the binding constraints to achieving the desired levels of economic growth. both government and the private sector have an important role to play in meeting the skills shortage of the economy. though it may seem modest, this fundraising dinner furthers empowerment through granting learning opportunities to the disadvantaged, thus adding to the skills base and increasing economic opportunity and upliftment in areas around st mark ’ s. initiatives such as this one, if sustained and replicated across the country, will make a meaningful contribution to the ultimate objective of a better life for all. ladies and gentlemen, the time, effort and money donated towards making this evening such a resounding success, is an eloquent expression of passion for extending educational benefits to the least well - off and most vulnerable. no cause can be worthier. i thank you all for listening to your hearts and opening your purses to make a difference. thank you.

in generating financial resources for institutions, fundraising is not their raison d ’ etre. we can also think of “ fun ” raising, i. e. entertaining and exciting ways of building alumni relationships. various projects, too numerous to mention, can be undertaken. also, benefits of staying connected to one ’ s alma mater, other alumni and peers are immeasurable. networking is developed through strong alumni associations. this includes circulating information on internship, employment and other opportunities available in the various areas of enterprise alumni are engaged in. to my mind the benefits seem to outweigh the costs. your effort as we gather here tonight dovetails with one of the government ’ s key programmes. as you may be aware, the government has set itself the goals of halving poverty and unemployment by 2014. to meet these challenges, the government seeks an annual average growth rate of 4, 5 per cent or higher between 2005 and 2009, and an average growth rate of at least 6 per cent between 2010 and 2014. there are strong indications that the south african economy has reached a higher growth path. the growth rate averaged 3 per cent per annum between 1994 and 2003 as compared to 1 per cent during the decade preceding the country ’ s advent to democracy. however, growth rates in 2004 and 2005 have averaged 4, 5 per cent and 4, 9 per cent respectively. while growth is expected to decelerate somewhat this year, it is still expected to exceed 4 per cent. there is thus little doubt that the sustained application of prudent macroeconomic policies is bearing fruits. monetary policy has played its part by contributing to a low inflationary environment - inflation has been within the target range of 3 - 6 per cent for cpix for the past 34 months - which in turn has been supportive of economic growth. the maintenance of price stability, however, is not without its challenges. the globalisation of the south african economy is well documented. there is no escaping the impact of global influences on the sa economy. the recent volatility in our financial markets following the increased risk aversion of global investors towards emerging countries is an example in this regard. in addition, the recent successive monthly increases in the price of petrol as a result of the sustained increase in international oil prices bear further testimony to the sensitivity of the south african economy to global developments. as is the case internationally, the high oil price, if sustained, poses a significant threat to inflation and economic growth in south africa. there are domestically generated