caleb m fundanga : advanced payment system oversight and management opening remarks by dr caleb m fundanga, governor of the bank of zambia, at the macroeconomic and financial management institute of eastern and southern africa ( mefmi ) workshop on advanced payment system oversight and management, lusaka, 12 july 2010. * * * the director – financial sector management at mefmi representatives from mefmi secretariat distinguished resource persons dear participants ladies and gentlemen it is my pleasure and honor to be here today to officiate at this important regional workshop on advanced payment system oversight and management organized by the financial sector management programme of the macroeconomic and financial management institute of eastern and southern africa ( mefmi ). ladies and gentlemen, allow me to begin by expressing my gratitude to mefmi, for having organized this workshop that has brought together officials from the regional central banks and ministries of finance and economic planning to address and brainstorm on important aspects concerning regulation and supervision of the payment systems. i warmly welcome you all to zambia and in particular to the city of lusaka. in particular, i would like to welcome and thank our distinguished resource persons, some of whom are here present and others still to join us during the week. we thank you for accepting invitations to join us for this workshop and hope that your participation will enrich the deliberations of this workshop as well as the knowledge of the participants. i am aware that the quest to hold this workshop was driven by the deep conviction that a well developed and regulated payment system plays an important role in enhancing and promoting soundness in the financial system and is a catalyst for creating efficient transmission of monetary value in the economy. a well functioning and developed payment system is an essential requirement for the development of a market economy and deep financial markets. equally important is its role in the enhancement of the conduct and transmission of monetary policy. conversely, inefficient payment system operations can be a channel for causing distortions in the economy through inordinate delays in the monetary policy implementation and in settlement of financial transactions. this will invariably prevent the central bank from achieving its objectives of price stability and a sound financial sector. the mefmi region still faces a lot of challenges with respect to the development and oversight of payment systems. notable among these are : 1. regulation of non - bank payment system providers such as mobile phone companies ; 2. regulation of innovative payment system products ; 3. ensuring the law contributes to payment system developments and operations ; 4. ensuring full

. it is also important to realise that not all projects can access venture capital funds. only innovative, high quality and highly profitable projects may qualify for these funds. therefore applicants of these funds should think outside the box and provide well researched project plans that meet international standards. in this regard it is key for project promoters to collaborate and pool resources as a team instead of the usual norm of going it alone. in addition, as we are all aware, small and medium sized enterprises form the engine of economic and social development as they generate employment, and are an ingredient to growth and international competitiveness. it is therefore imperative that this key sector rises to the challenge and creates wealth through innovative entrepreneurship. a disciplined, innovative and successful sme sector will no doubt make zambia an attractive destination for more venture capital. to this effect, this workshop on venture capital should explore ways to support efficient resource mobilization for smes. distinguished ladies and gentlemen, with these few remarks, i now declare this workshop officially opened. i thank you for your attention and god bless your deliberations.