Caleb M Fundanga: Framework of cooperation between the Bank of
Zambia and the University of Zambia
Opening remarks by Mr Caleb M Fundanga, Governor of the Bank of Zambia, at the signing
ceremony of the Memorandum of Understanding between the Bank of Zambia and the
University of Zambia, Lusaka, 30 June 2010.
* * *
The Vice Chancellor, University of Zambia - Prof. Stephen Simukanga
The Deputy Governor - Administration and University Council Chairperson -
Dr Tukiya Kankasa-Mabula
Distinguished Professors and Lecturers from UNZA
Colleagues from the Bank
Members of the Press
Distinguished Ladies and Gentlemen;
It gives me great delight, on behalf of the Bank of Zambia, to welcome you all to this
important signing ceremony of the Memorandum of Understanding between the Bank of
Zambia and the University of Zambia. The MoU that we are about to sign today provides a
framework for the support to the Economics Department and Research activities in the
Department.
Ladies and Gentlemen; the Bank of Zambia continues to view the University of Zambia and
the Copperbelt University as strategic partners in the economic development of Zambia. It is
for this reason that the Bank has for several years now been involved in the support of
various capacity building programmes at the two tertiary learning institutions. This support
has taken various forms, including the following:

Salary supplementation to fifteen (15) academic staff in the Department of
Economics at UNZA and nineteen (19) academic staff in the School of Business at
the Copperbelt University (CBU);

Full sponsorship of five undergraduate students at third and fourth year level at CBU
and five students at Masters Degree level at UNZA;
 Financial support in the acquisition of books and periodicals;

Purchase of equipment such as computers and computer software.
The Bank of Zambia acknowledges the various efforts being made by the University to
improve its infrastructure and the delivery of quality university education and research. We
are also mindful of the various funding constraints faced by the University as it expands its
programmes to meet the ever increasing demand for its services. The Bank is therefore,
proud to respond to the University's call for partnership with industry and other stakeholders
in order to realise its noble objectives that cannot presently be fully funded from public
resources and students fees. In this regard, the Bank of Zambia has seen it fit to not only
extend this support, but to also streamline and enhance it in order to better align this support
with strategic objectives of both the Bank and the University.
Ladies and Gentlemen; as you are aware, the Bank of Zambia has been providing financial
support for the purpose of promoting scholarly and academic excellence in research and
instruction at the University of Zambia. Today's MoU is meant to extend this support for
another two years commencing with the 2009/2010 academic year. In addition, the MoU
aims at strengthening the framework of cooperation between the Bank of Zambia and the
Economics Department of the University of Zambia. Under this agreement, the Bank has
committed up to K605 million per annum in support to the Economics Department of the
University of Zambia.
This support will include monthly salary supplementation for 15 lecturers in the Department;
scholarships to four outstanding UNZA students of Economics at Masters Degree level;
acquisition of books and periodicals; research support; and the purchase of computers and
software for use in research. It is the hope of the Bank that this support will help address
some of the challenges facing the University, including recruitment and retention of academic
staff, funding for research and the acquisition of vital equipment and software.
Ladies and Gentlemen; through this support, the Bank of Zambia would like to be
associated with the University's mandate of building human capital, through delivery of
quality education, and the extension of the frontiers of knowledge through research. This
synergy between the Bank and the University is based on the understanding that both
institutions are knowledge based. It is therefore, our belief at the Bank that this cooperation
will continue to generate positive externalities not only to the two partners but to the wider
community through the developmental impact of enhancing knowledge.
Let me re-iterate that sustainable economic development is not possible without adequate
investment in the knowledge industry. It is precisely for this reason that the nations that have
attained great economic progress are also those that have invested heavily in education.
Ladies and Gentlemen; in the recent years, the Bank of Zambia has been striving to
strengthen its focus on economic research in order to improve the formulation and
implementation of monetary policy in this dynamic economic environment. The Bank has in
this regard been publishing the BoZ Reader where members of staff and external
researchers are encouraged to publish articles which have a bearing to the economy in
general and monetary policy in particular. The Bank in collaboration with the Centre for the
Study of African Economies at Oxford University is also in the process of publishing a book
on the economic prosperity in Zambia. I wish to take this opportunity to encourage all
students and academic staff at UNZA to contribute to some of the forthcoming publications of
the BoZ Reader.
In conclusion, I wish to re-iterate that the Bank of Zambia commits to continue supporting
the Economics Department and Research programmes at UNZA and hopes that the
University will live up to its obligations under the framework of cooperation to be signed
today. We challenge the Economics Department at UNZA through the Vice Chancellor to
scale up its research activities in issues of interest to the Bank and the Zambian economy in
general. For this is what this MoU entails.
We also call upon other industry players in the financial sector to emulate our noble
contribution in building human capital and research capacities at this important institution.
This is important to ensure that our financial sector operates at the cutting edge of
knowledge and innovation. I have no doubt therefore, that such investment will yield returns
in the long run as knowledge is a secure investment.
I thank you for your attention.