in water management, in roads and ports and in cold storage facilities. south african firms in the agricultural and agro - processing sector have the expertise, the know - how and the capital to invest in food production and processing on the continent. again, there are strong backward linkages between such investments abroad and jobs back home. it is often said that all economic progress is about moving up the value chain, producing ever more complex products. this can only be done through partnership and cooperation between bis central bankers ’ speeches the state, the private sector and our education and research communities. a major area of focus for the country is the manufacturing sector. manufacturing is important because it is a sector where productivity levels are already relatively high and the sector is able to generate well - paying jobs for millions of people. a major obstacle to faster growth in manufacturing has been a shortage of high level technical skills. that is where you come in. this university is at the cutting edge of producing the type of skills required for our manufacturing sector to move up the value chain, to enhance productivity and grow our exports. the central university of technology is the home of the centre for rapid prototyping and manufacturing. this university, supported by the national research foundation, is investing heavily in research in ‘ additive manufacturing ’, also known as 3d printing. 3d printing is likely to revolutionise aspects of manufacturing, lowering barriers to entry and allowing mid - sized economies to compete more effectively with other global players. these are exciting developments and i have no doubt that this university will play a greater role in helping our country to develop its advanced manufacturing sector. in conclusion ladies and gentlemen, despite significant challenges, south africa as a nation is in the process of determining its future ; it is a country that is growing, and with that growth comes opportunities. we must continuously raise the quality of our education system ; continuously keep up with the best developments globally so that we can produce young graduates who are at the cutting edge of the fields that they enter ; young people who will shape the future, drawing on the extraordinary strengths of all south africans. the future is contested terrain, and it will be determined by our vision of what that future could be and what we, together, do. it is largely in your hands now. again, thank you for this honorary doctorate. i humbly accept it on behalf of all south africans who are making a contribution to build a non - racial, democratic and prosperous south africa. thank you. bis central bankers ’ speeches

define precisely the coordinated effort needed to contain inflation in pursuit of the broader economic objectives of sustainable high economic growth and employment creation. while this agreement should define the practical implication of the reserve bank ’ s goal of price stability, it should also guarantee the instrumental independence of the reserve bank. secondly, the announcement of inflation targets clarifies the central bank ’ s intentions and reduces uncertainty about the future course of monetary policy. inflation targets make policy transparent. they make the central bank ’ s intentions explicit in a way that should improve the planning of the private sector. thirdly, inflation targeting helps to discipline monetary policy and strengthens the central bank ’ s accountability. if targets are not met, the central bank has to explain what went wrong. this leads to a better understanding on the part of the public on what basis monetary policy decisions were made. disadvantages of inflation targeting although inflation targeting has certain definite advantages when compared with other monetary policy frameworks, it could also have certain disadvantages. one of the limitations of inflation targeting is that it is a complicated approach to implement. although all monetary policy frameworks should be forward looking, inflation targeting relies heavily on forecasts. where inaccurate forecasts are made public it can obscure the central bank ’ s objectives and reduce its credibility. compared with other monetary policy frameworks there is also the risk that inflation targeting could lead to inefficient output stabilisation. this can occur particularly in the event of significant supply shocks, such as sharp changes in the price of oil. preconditions for inflation targeting in view of these potential disadvantages of inflation targeting, it is important that certain preconditions are met before a decision is taken to implement this framework. in this regard it is important that a central bank is free to pursue financial stability. the inflation target may be jointly set by the government and the central bank. however, once the target has been determined the central bank should be free to use any instrument to achieve the ultimate objective. in the application of inflation targeting it is further important that there is a commitment by all authorities to the objective of price stability. preferably there should be close cooperation between monetary policy and other policies, and in this coordinated effort the inflation objective should be an inherent part of overall policy. to implement inflation targeting it is important that well - developed financial markets exist in a country. the policy instruments generally used by monetary authorities require effective money, capital and foreign exchange markets. if financial markets do not react quickly to the