payment of retail and public services, including government services has significant benefits to consumers and service providers alike. digital platforms facilitate relatively safe, efficient and 2 / 4 bis - central bankers'speeches convenient service delivery and allows for tracking of financial transactions. with regard to government related services, the use of digital platforms is expected to enhance revenue collection and contribute positively to the national treasury. this notwithstanding, the rise in the use of digital financial services has also introduced significant risks for individuals as well as for financial service providers. to address these risks, there is greater need to enhance cyber security and raise awareness about fraud to secure higher uptake and protect the consumers of digital financial services. ladies and gentlemen, it is a well known fact that the covid 19 pandemic has affected millions of people worldwide in the last three years, and zambia is no exception. while the significant adverse impacts of the pandemic on global economic growth are subsiding, the pandemic is still a risk for future economic growth and consequently financial inclusion. i therefore encourage everyone to get vaccinated and continue adhering to health guidelines as prescribed by the authorities in order to protect ourselves and our communities. ladies and gentlemen, the contribution of the financial sector towards the attainment of vision 2030 and its underlying principles is being undertaken through the implementation of the national financial sector development policy, the national financial inclusion strategy, the rural finance policy and strategy, the capital markets development plan and the national strategy on financial education. these financial sector strategies aim to broaden and deepen the types of financial services in the banking, capital markets, microfinance, insurance and pensions sectors as well as to promote financial inclusion. as financial sector regulators, we have vested interest in ensuring that the financial sector is innovative, responsive to demand for financial services and that it supports zambia's economic growth, while maintaining stability. it is essential therefore, that the financial sector continues to expand its portfolio of products and services by leveraging reforms, digital innovations and targeted outreach. in this regard, i wish to urge all stakeholders in the financial ecosystem to collaborate and contribute to the financial inclusion agenda through the development of appropriate infrastructure, provision of affordable customer centric products, delivery of financial literacy and promotion of consumer protection for the underserved population, particularly in rural areas. invited guests, it is important to note that as part of the implementation of the national strategy for financial education, the financial literacy awards are held in october every year to recognize efforts made by individuals

securities, the average commercial banks ’ lending rate declined further to around 28 % in december 2006 from about 34 % in december 2005. in january 2007, it slightly declined to about 27 %. mr chairman, clearly, there is a need for commercial banks to do more to reduce lending rates in order to influence a substantial expansion of private sector credit. lower lending rates will contribute to the reduction in the cost of doing business in zambia. the current environment of low inflation and relatively stable exchange rate offer a good opportunity for lowering commercial banks lending interest rates. distinguished guests, ladies and gentlemen, zambia ’ s external position continues to score remarkable improvements as reflected in the build - up of gross international reserves to 2 months of import cover in 2006 from 1. 6 months of import cover in 2005. furthermore, the preliminary assessment is that zambia ’ s surplus trade balance increased to us $ 1, 176. 0 million in 2006 from a trade surplus of us $ 10 million in 2005. similarly, the current account deficit as a percentage of gdp, excluding grants, reduced from 11. 8 % in 2005 to 2. 3 % in 2006. this improvement has been due to increased export receipts arising from record high copper prices and increased export volumes. in addition, the historic debt relief received in 2006 and the increased budget support from our cooperating partners has helped to strengthen the external position. preliminary information indicates that the country ’ s external debt position stood at us $ 635 million as at end of december 2006, a reduction of about 87 % from the end - 2005 debt stock of us $ 4. 5 billion. in 2006, the foreign exchange market was characterized by general depreciation of the kwacha against major currencies. in order to moderate exchange rate volatility and maintain stability in the external value of the kwacha, the bank of zambia intervened by way of purchasing and selling foreign exchange. in the banking sector, there have been no bank failures in the recent past, reflecting stability in the financial sector mr chairman, the government has shown commitment to continuing the economic reform programme. to this end, measures are being taken to ensure that the macroeconomic gains attained so far will be consolidated in 2007. accordingly, government is targeting real gdp growth of 7. 0 % and inflation of 5. 0 %. pursuit of these objectives is within the context of the long - term development objectives well articulated in the national long term vision, 2030. part of this vision is enshrined in the fifth