The growth of this sector is expected to be further bolstered by the establishment of the Multi-Facility Economic Zones in Lusaka and Chambishi to further diversify the economy and promote trade, stimulate export activities, technology, skills transfer and job creation. In pursuing an export-led growth strategy, the economic zones would actively promote value addition in identified specific products, such as, copper, vegetables, tobacco, gemstones, cotton yarn, leather products, sugar and oil cakes, of which the country has a competitive advantage. For instance, there has been a large increase in tobacco production, which has led to increased export earnings. Unfortunately, much of the tobacco is exported in a raw form with very little treatment or processing in the country. Significant investments in plant and machinery for value-addition will therefore be needed to offset this scenario. Thus, with expected large investments in Economic Zones and Export Fund facilities like the one we are witnessing today, Zambia’s competitiveness through value addition is expected to improve. Mr President let me also commend all the institutions involved in the two syndicated loans. It is gratifying to note that these facilities have been made possible due to the partnerships between the local financial institutions and international ones. I commend such partnerships and challenge other local institutions to enter into similar arrangements to reduce the cost of borrowing and promote growth in Zambia. Congratulations should be extended to the Zambia National Commercial Bank, ALS Capital and Calag Capital, AFREXIM, PTA Bank and Loita Capital to name but a few for the initiative.

This ceremony is therefore more than timely as the Government is working tirelessly towards empowering its citizens economically and at the same time increasingly diversifying the economy and promoting export led growth. It is for this reason, Mr President that the Government established the Citizen’s Economic Empowerment Fund under the Citizens Economic Empowerment Act of 2006 in order to promote empowerment of citizens in various economic activities. This signing ceremony is yet another indication of the growing investor confidence in Zambia’s economy. You will be glad to note that the country’s total investment pledges rose more than ten times over to US $ billion in 2007 from US $ million recorded in the year 2001. This is an indication of the vast investment potential and improving investor confidence due to the macroeconomic stability particularly lower inflation and the sound fiscal polices that the Government has put in place. Institutional capacity has also been enhanced with effective supervision of the financial system to promote efficient operations of the banking sector. Mr President, the mining sector continues to be the major economic activity in the country. Following the liberalisation of the sector and subsequent privatisation of the mines, Government has continued to facilitate mineral exploration by the private sector and created an attractive investment environment through the maintenance of macroeconomic stability. This has sustained renewed interest in mining, reflected in a complete rebound in the mining sector on the Copperbelt and North Western province start up of new mines.