The commencement of AIA AFG Takaful Bhd., being the second takaful operator to be launched among the new licensees, offers strong value propositions and is envisioned to further enhance the development of the family takaful industry in Malaysia, namely in penetrating untapped areas of business within the family takaful industry, such as microtakaful, medical and retirement products. This would certainly enhance the breadth and depth of family takaful products available in the market, thereby widening the financial safety net of the general population. The establishment of the two additional takaful joint ventures that would InsyaAllah, be in operations by the end of this year would also reinforce the competitive element and innovation in the takaful industry. On the regulatory front, regulations for the takaful industry will continue to focus on ensuring effective risk management in the product development process and operations of takaful operators. The takaful industry has been progressively on its track to fully embark on the principle and risk-based supervisory approach that has been implemented for the insurance sector. This is seen by the recent issuance of the Guidelines on Takaful Operational Framework, which establishes principles governing the operational processes of takaful business to ensure that business activities and innovations are within the takaful operator’s risk management capacity. With effective discharge of takaful operators’ duties, the interests of takaful stakeholders will be safeguarded as the guidelines place emphasis on sound management to ensure sustainability of takaful operators.

For example the National Payment Systems Act which was enacted in 2007 gives powers for the Bank of Zambia to regulate and oversee operations of payment systems to ensure the effectiveness, efficiency and safety of payment systems so as to promote the stability and safety of the Zambian financial system. Further, the Bank of Zambia through the National Payment Systems Vision and Strategy 2007–2011 and the Financial Sector Development Plan, has undertaken various activities that are focused on improving access to financial services for both the banked and unbanked population. You may recall the Topline findings by Finscope on our financial sector development systems and their recommendation to expand access to financial services to the unbanked population in remote areas. The launch of Airtel Money is expected to contribute positively to the financial inclusion agenda which in turn will have a positive impact on the economy at large. In addition, the Bank is in the process of putting in place Electronic Money Regulations that will ensure that e-money transactions are operated within safe, efficient and secure bounds. Distinguished guests, allow me to also comment on the recent B+ sovereign rating assigned to the country by world renowned rating agencies Standards and Poor and Fitch, as well as, the reclassification of Zambia as a middle income country by the World Bank. The rating and reclassification requires the central bank, the Zambian business community and Government to continue enhancing the financial system to ensure that it is robust and reaches the unbanked.