s economic programme. this resulted in the immediate disbursement of an amount equivalent to sdr 18. 395 million ( about us $ 28. 3 million ), bringing total disbursements under the ecf arrangement to sdr 201. 7 million ( about us $ 310. 3 million ). 53. the imf mission commended the authorities for zambia ’ s economic prospects that have continued to improve as well as for having sound macroeconomic policies. it also commended the authorities for the progress made in implementing structural reforms. however, the fund noted that the main medium - term challenge remained that of creation of fiscal space for priority spending, enhancement of economic diversification and poverty reduction. 54. total disbursed poverty reduction budget support ( prbs ) in the fourth quarter of 2010 amounted to us $ 123. 4 million from ; the african development bank ( us $ 49. 8 million ), european union ( us $ 43. 8 million ), sweden ( us $ 9. 9 million ) and germany ( us $ 9. 9 million ). this brought the total disbursed prbs to us $ 227. 4 million for the year against the projection of us $ 222. 9 million. the variance of about us $ 4. 5 million is largely attributed to exchange rate variations. 55. in addition, a total of us $ 35. 0 million mining tax revenue was received from first quantum mining plc, for the benefit of government, while bank of zambia foreign exchange purchases from the market amounted to us $ 61. 0 million during the period under review. the above receipts were against payments to pta bank ( us $ 139. 0 million ) for oil procurement and debt service payments ( us $ 44. 5 million ). inflation outlook for the first quarter of 2011 56. annual overall inflation is projected to remain above 8. 0 % during the first quarter of 2011, mainly due to the following factors : seasonal increase in some food prices : during the first quarter of the year, there is seasonal low supply of selected food items including fish, fresh vegetables and bis central bankers ’ speeches lagged effects of money supply growth in 2010 : during the second half of 2010 there was a rapid increase in broad money by over 15. 0 %, largely due to lending to government for the purpose of purchasing maize following the bumper harvest. 57. however, the bank of zambia will continue to monitor developments and undertake appropriate monetary policy actions to ensure that monetary targets are achieved. to contain growth

economic crisis. this seminar is unique in the sense that it has been organised to specifically address the effects of the crisis. we feel particularly honoured to host this important event. chairperson, the ongoing economic crisis is not of africa ’ s making but arose from advanced economies like the united states of america and united kingdom. however, there is a risk that african countries could become the biggest casualties of a crisis they did not create. the impact is already severe and has dealt a huge shock to our continent while posing a great threat of reversal to the hard earned social and economic gains that most of our economies had achieved in the recent past. ladies and gentlemen, for more than a decade, most african countries had continued to register unprecedented economic growth rates averaging 5 % and above. we saw a rise in income levels and a reduction in poverty among our peoples with improved education, health, water and infrastructure development. the continent also experienced a surge in investment flows in many sectors including mining, manufacturing, tourism, transport and construction. progress in governance and accountability had also been noted in most african countries. mr chairman, allow me without pre - empting the deliberations to mention some problems the global financial crisis has created for most african economies. commodity exporting countries have experienced a decline in their export receipts. this has been due to the decline in commodity prices reflecting the weak demand of such commodities arising from the scaled down output in industrialised and emerging market countries. the declining export earnings as well as changing investor sentiment toward investing in emerging markets, which has been reflected in the reversal of investment flows, have been exerting pressure on the exchange rates. the depreciation of the local currencies is creating additional inflationary pressures while fiscal operations have not been spared as the tax revenue from export earnings has been adversely affected. furthermore, the effects have quickly extended to the real economy, with serious consequences on jobs. in particular, manufacturing has been adversely affected because of its support to the primary industries on the continent. as extractive industries on the continent face depressed commodity prices, the demand for manufactured goods will continue to decline. this is expected to negatively affect africa ’ s manufacturing sector. the decline in the demand for finished goods in the advanced economies is also adversely affecting exports of our manufactured goods and thereby slowing down the manufacturing sector on our continent. tourism is also adversely affected as many foreign tourists postpone or reschedule their visits to our continent as they grapple with severe economic conditions in their