Caleb M Fundanga: Equal rights, equal opportunities - progress for all
Opening remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Official
Launch of the Financial Institutions' Exhibition and Workshop in commemoration of
International Women's Day 2010, Lusaka, 5 March 2010.
* * *
The Deputy Permanent Secretary, Gender and Women in Development, Ms Christine
Kalamwina;
The International Labour Organisation Country Director, Mr Gerry Finnegan;
The Deputy Governor - Administration, Bank of Zambia, Dr Tukiya Kankasa-Mabula;
Chief Executives and Representatives of Exhibiting Institutions;
Heads of Non Governmental Organisations;
Distinguished Invited Guests;
Members of the Press;
Ladies and Gentlemen
It is my honour and privilege to participate in the launch of this important exhibition by
financial institutions in commemoration of the International Women's Day for 2010 under the
global theme "Equal Rights, Equal Opportunities: Progress for All."
Ladies and Gentlemen, as you may be aware, the International Year for Women was
declared by the United Nations in 1975. Since then many countries world over celebrate
International Women's Day to recognise the achievements of women without regard to
national, ethnic, cultural, economic or political divisions.
International Women's Day is an occasion to look back on past struggles and
accomplishments but even more importantly a time to look ahead to untapped potential and
opportunities that await future generations of women. Each year on this special day,
hundreds of International Women's Day events occur all around the world. The events range
from small random informal gatherings to large-scale highly organised events to celebrate
women's advancement while highlighting the need for continued vigilance and action.
A good number of Governments around the world, have made commitments to promote
gender equality, by among other things, taking initiatives to integrate gender perspectives
into national budgets or development plans in order to reflect the differentiated needs of
women and men. Zambia is no exception.
In Zambia, it is recognised that the creation of the Ministry of Gender and Women in
Development, is a deliberate effort by the Government to ensure that the needs of women
are addressed. Through the Ministry we are able to recognise the strides that have been
made by women in national development and we look ahead to the challenges that are
before us as we strive to achieve our goal of gender equality.
In addition, Zambia is a signatory to the SADC Declaration on Gender and Development.
This declaration calls for the equal representation of women and men in the decision making
process of member states at all levels. I must concede here that, although we have made
significant strides as a country in women representation, more still needs to be done. We are
however encouraged that there are a good number of women with potential and ability to rise
above any form of challenge. We need to use our national development plans as a platform
to achieve our Vision to be a prosperous middle income country by 2030, by equally
empowering both women and men. Indeed, without the participation of women, who make up
more than 50% of Zambia's population, it will not be possible to achieve our Vision 2030.
Distinguished Participants, as you are well aware, over the last decade, Zambia has
recorded positive economic growth averaging 5%-6% per annum. The macroeconomic
environment has improved with the achievement of low levels of inflation, a relatively stable
exchange rate as well as reduced interest rates. In addition, we have seen increased
investments in the mining, construction and other productive sectors. This improved
environment presents great opportunities for our women to realise their economic potential.
However, women can only realise their true potential, if they have access to education and
play a full role in the decision-making processes at all levels of society.
fact, in the developmental process, women often take centre stage in the running of small
and medium-scale enterprises ranging from agriculture, mining and tourism to manufacturing
as well as cross border trading. However, in order to grow these businesses, access to
affordable financing is pertinent. The role played by the various players in the financial sector
can, therefore, not be over-emphasized as businesses depend on a safe place to save
money, maintain working capital and also access loan facilities.
Ladies and Gentlemen, the 2005 FinScope Survey conducted under the Financial Sector
Development Plan (FSDP) confirmed that levels of access to financial services in Zambia are
extremely low. Only one third of Zambia's adult population was reported to have had access
to a financial service or product. Further, fewer than 15% of adult Zambians were reported to
have access to commercial banks. The Survey further indicated that only 11.6% of women
are banked compared to 17.5% of banked men whilst 82% of women have never had a bank
account compared to 73% for men.
A follow on update survey was undertaken in 2009 and the results are expected to be
launched during the second quarter of 2010. However, preliminary analysis indicates that the
levels of access still remain low. This is no doubt an indication that more needs to be done to
increase access to financial services.
On its part, the Bank of Zambia has incorporated the promotion of financial inclusion as one
of its strategic objectives for the 2008-2011 Strategic Plan. We believe that increased
extension of financial services to ordinary citizens and small business enterprises will play a
vital role in poverty reduction and economic growth. Further, by maintaining low inflation and
promoting a safe and stable financial system, the Bank ensures that people's incomes are
safeguarded and prices of goods and services are stable.
Furthermore, in 2009, the Government approved the extension to the initial five-years of the
FSDP in order to continue the national strategy of strengthening our financial sector and
enhancing financial inclusion. The second phase of the FSDP will focus on three main pillars
namely: (i) enhancing market infrastructure; (ii) increasing competition; and (iii) increasing
access to finance. Overall, the vision is to have a dynamic and inclusive financial sector that
supports all aspects of the economy.
Therefore, the theme for this workshop and exhibition "Enhancing Financial Access for
Women: A Tool for Poverty Reduction" is timely and appropriate. Our aim is to recognise and
heighten awareness of women's issues within this context. More specifically, the main
objective of this forum is to showcase a variety of financial services and products available
and sensitize the general public on:
(i) how financial institutions are contributing to increasing gender financing in Zambia;
(ii) bringing awareness to the women on the opportunities that are available for them to
access finance and mitigate related challenges;
(iii) the role of the Bank of Zambia and other financial institutions in meeting the
objective of financial inclusion;
(iv) how the United Nations as the lead international organisation and other local
agencies are supporting women in Zambia; and
(v) sharing experiences in running businesses, and the opportunities and challenges in
accessing finance in order to grow the income base.
The exhibition gives us an opportunity to identify women's potential and encourage them to
stand up and be counted and, contribute to the development of this country. The workshop
and exhibition also gives us an opportunity to make the "marginalized woman" aware of the
various financial services and products that are available to them.
Distinguished Participants, I am glad to note that many products on exhibit here include
those targeted at the ordinary citizen and more specifically women, as opposed to large
corporates and men. This is a very welcome development as one of the challenges to
women accessing finance is the stringent requirements, which most women are unable to
meet.
Furthermore, despite the recent marked improvements in macroeconomic indicators, alluded
to earlier, interest rates and bank charges continue to be unaffordable to the majority of our
people especially women. It is for this reason that I reiterate my appeal to all financial service
providers especially those who are present here today, to make some meaningful efforts in
addressing the high cost of financial services in the country. There is a need for financial
service providers to think outside the box and design financial products that are affordable
and can easily be accessed by women for various projects at all levels of society including
the community. I have in mind here, financing models used in most Asian countries such as
the Grameen Bank model in Bangladesh which has demonstrated that women's potential to
contribute towards poverty reduction can be unlocked through provision of finance at
community level. Indeed the Grameen Bank model has also proved that women have a good
habit of paying back their loans.
It is also fitting that women's potential to contribute to development should be acknowledged
and their potential to drive change should be recognised. Although women are yet to gain
equality, they are helping to move their families and communities out of poverty. With a little
more support, so much more could be achieved. It is my hope that access to finance by
women will be enhanced through this exhibition.
I am however, pleased to note that, today, more financial institutions are providing financial
services to women in Zambia. More women and girls are learning to read and write. We also
see throughout the country that women are discovering a new level of economic
independence. They're contributing more to their families and communities. They're gaining
access to credit and jobs that can give them a decent standing of living. This is desirable and
should be encouraged.
As I conclude, let me extend my gratitude to all the participants and resource persons and
commend all the institutions that have taken part to organise both the workshop and
exhibition. Let me also take this opportunity to appreciate the efforts by our cooperating
partners in the financing of activities promoting gender equality. This is evident by the
number of agencies and non-governmental organizations looking at women's issues, most of
which are represented, here, today.
Ladies and Gentlemen, International Women's Day celebrates the collective power of
women past, present and future. I believe the next few days will therefore be very informative
and entertaining. I am certain that everyone will find this exhibition and forum beneficial and I
wish you all a successful event.
I thank you.