the zambian government launched the financial sector development plan ( fsdp ) in 2004 to address weaknesses that had been identified in the financial sector. the fsdp is therefore a comprehensive strategy that is aimed at achieving a financial system that is sound, stable and market - based, that would support efficient resource mobilization necessary for economic diversification and sustainable growth. the financial sector weaknesses are being addressed through a public and private sector partnership. the implementation structure is chaired by the secretary to the treasury at ministry of finance and national planning with the secretariat function responsible for the coordination of activities based at the bank of zambia. mr chairman, the goal of the fsdp is to have a financial system that is stable and marketbased in order to support efficient resource mobilization necessary for economic diversification and sustainable growth. a number of reforms have already been undertaken under this plan. for instance, a credit reference bureau has been established and we expect it to be operational in the coming year. in addition, studies have also been taken to comprehend the constraints to broader access financial services. one of the outputs of the fsdp has been a market knowledge study called finscope zambia which is a nationally representative survey of the use of, and demand for, financial services. it provides insights into how consumers source their income and manage their financial lives. this is the first time a survey like this has been conducted in zambia and provides valuable information for players in the financial market. the survey, which was conducted in 2005, notes that very few zambians use the formal financial sector. the report reveals that most zambians prefer to invest in non - financial instruments such as a business, livestock, land or agriculture equipment. mr chairman, the year 2006 marked the eighth consecutive year of positive real growth in output while inflation declined remarkably to single digit level of 8. 2 %. during this period, investment was strong, particularly in the mining, tourism, construction, transport and agricultural sectors. this set a good basis for further favourable economic growth in the medium to long - term. increased private sector investment, particularly in the mining sector, contributed to this growth. mr chairman, ladies and gentlemen, zambia ’ s external position has also shown remarkable improvements with the trade surplus rising to us $ 1, 176. 0 million in 2006 from us $ 10 million in 2005. similarly, the current account deficit as a percent of gdp ( excluding grants ) reduced to 2. 3 % from 11. 8 % during the same period. this outturn was

18million ). increased participation in both the money and capital markets by non - bank financial institutions with proposals for issuance of other corporate bonds are also under current consideration. mr chairman, some of the key sectors with potential investment include agriculture, mining, manufacturing, tourism and energy. mr. chairman, given all these developments which i have cited, one can tell that there are enormous possibilities for the financial sector in zambia. in this regard, our expectation, at the bank of zambia, is that the financial sector should take a leading role in facilitating further developments in the areas which i have discussed. however, during our interactions, key players in the financial sector have informed us that they have a limited capacity to provide the required services in this regard. this forum has therefore been organized and arranged by the bank of zambia to bring together zambian financial sector players and international financial players who have an interest to see that zambia takes its rightful place in the world economy. our expectation is that after this forum, we shall see the emergence of an interactive and symbiotic alliance between international and zambia financial institutions whose goal will be to provide financial services that will uplift the well - being of the zambian populace at large. this sounds like a difficult task to achieve but it is my conviction that it is better to begin a step towards this direction rather than waiting for it happen in future. on a lighter note, ladies and gentlemen, let me remind you that the soccer world cup to be hosted by south africa in 2010, has attracted increased demand in the construction and tourism sectors in the whole southern african region. zambia needs to take advantage of this and invest heavily in the tourism industry to benefit from the event ; particularly that it has a vast number of national parks and the victoria falls, one of the seven natural wonders of the world. obviously this can only be done if there is long term partnerships between local financial institutions and international financial institutions like the ones invited here today. mr. chairman, ladies and gentlemen, i thank you for your attention.