T Mboweni: Friends of St Mark’s fundraising dinner

28 July 2006

Education transforms lives, it changed mine.

Honoured guests
Ladies and gentlemen

I am honoured to be present here this evening and to be a part of this
special annual dinner which has been turned into a very worthwhile cause. The
Old Diocesan Union defines its objects as bringing together past students of
the Diocesan College and the Diocesan Preparatory and Pre-Preparatory Schools,
to keep them in touch with Bishops and the present students, to promote the
interests and welfare of Bishops and to administer a fund to provide financial
assistance for descendants of present and past members of the Union to be
educated at Bishops. The formation of the Friends of St Mark’s and its
activities over the years is glowing evidence, if any was required, that the
role of Bishops has been redefined to shed its elitist image of the past.

Situated in the midst of grinding poverty, in an area with unemployment
rates at 80 percent, the modest fees at the College are still beyond the reach
of many locals. Fundraisers provide scholarships to disadvantaged pupils and
help improve facilities at the school. Also, St Mark’s boasts a laudable
community outreach programme that, among others, includes a Saturday school for
children from disadvantaged state schools, a maths and science teachers’
support programme, availing the school’s science laboratories for use by other
schools in the neighbourhood, and adult literacy classes.

The Archbishop Emeritus Desmond Tutu describes St Mark’s College as being
like water in a desert transforming rural hopelessness into an oasis where
young people can bloom. “Without St Mark’s College the chances of even literacy
for children in this area are slim. These children could become just another
statistic in the cycle of poverty. Education is the key to unlocking their
potential and what potential!” the Archbishop Emeritus, the patron of St
Mark’s, exclaims.

In the same vein, a Chinese proverb says: “If you are planning for a year,
sow rice; if you are planning for a decade, plant trees; if you are planning
for a lifetime, educate people.” This is echoed in the motto of St Mark’s:
“Thuto ke lesedi”, which, broadly translated, means: “Education is light”. To
which I may add that education changes lives; it definitely changed mine!

The strength of St Mark’s is the alumni association of St Mark’s College in
Jane Furse. Addressing their 20th anniversary fundraising dinner in December
2005, I was impressed by the effort and remarked that it was indeed rare for
former pupils of a black school to honour their school and commit themselves to
raising funds for the institution. While education remains primarily a
responsibility of government, private financial commitment is indispensable.
Strong alumni associations in the United Statement (US), for example,
contribute substantial sums of money to their institutions. In South Africa,
especially among blacks, there seems to be little interest among alumni to look
back and support their old institutions.

I do, however, acknowledge the nascent pockets of alumni associations of
former black schools that are emerging in some parts of the country. This is a
culture that we should endeavour to nurture. The relationship with a school
does not and should not end with matriculation. We must seek to inculcate in
learners that when they proceed to higher education, join the world of work or
business, they remain representatives of their former schools in the community,
country and the world at large.

It is therefore heartening to be part of this fundraising drive,
particularly because the friends of St Mark’ s have opened their hearts and
wallets to deepen and widen an existing initiative by former pupils of St
Mark’s who have taken it upon themselves never to allow their Alma Mater to
die. These are alumni who are proud of, and seek to build an everlasting
relationship with their Alma Mater, a relationship to be treasured, nurtured
and cultivated. These are men and women who value so much what they got out of
St Mark’s that they have developed a sense of community around the ownership of
the St Mark’s brand. They have decided that the St Mark’s brand will be
preserved and enhanced for current and future generations.

The importance of building strong alumni associations cannot be
overemphasised. The continued involvement and support of alumni have proved to
be the hallmarks of long-term success and sustainability of schools and
colleges in many parts of the world. As pressure on education budgets mounts
the world over, fundraising events like these are no longer intended to raise
supplemental income to fund “extras”, but have become essential components of
schools’ budgets. Fundraisers are the financial lifeline for St Mark’s College
a matter of life and death.

While alumni associations may be instrumental in generating financial
resources for institutions, fundraising is not their raison d’être. 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 percent or higher between
2005 and 2009, and an average growth rate of at least six percent between 2010
and 2014. There are strong indications that the South African economy has
reached a higher growth path. The growth rate averaged three percent per annum
between 1994 and 2003 as compared to one percent during the decade preceding
the country’s advent to democracy. However, growth rates in 2004 and 2005 have
averaged 4,5 percent and 4,9 percent respectively. While growth is expected to
decelerate somewhat this year, it is still expected to exceed four percent.
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 three to six percent
for urban areas excluding the interest cost on mortgage bonds (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 South Africa 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 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 for 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.

Issued by: South African Reserve Bank
28 July 2006
Source: South African Reserve Bank (http://www.reservebank.co.za)