services. this will in part minimize the risks associated with such innovative products as people will only make better judgments about their financial affairs if they understand the risks and returns associated with the product and services at their disposal. it is also apparent that financial illiteracy is more costly as people who make poor financial decisions will inevitably end up with a far lower standard of living than was otherwise achievable. mr. chairman, i wish to conclude by applauding celpay ’ s initiative to host the first ever mobile conference in zambia. the deliberations and recommendations of this conference will be keenly followed as the need to leverage access to financial services through the mobile phone is of paramount importance. mobile banking will lead to increased outreach, increased efficiency and productivity as well as increased returns for businesses. let me once again assure you, mr. chairman that, the bank of zambia is committed to providing an enabling environment through appropriate regulation for banks and financial businesses that wish to promote financial inclusion. we appreciate the mobile banking initiative by celpay zambia limited and look forward to greater investment in financial inclusion in our beloved country. i thank you.

inclusion, it is imperative to develop cost effective innovative products such as mobile banking. it is therefore expected that this conference will come up with solutions that will enhance the extension of banking services to the poor and at affordable rates. ladies and gentlemen, recent statistics on telecommunications indicate that there are about three million subscribers across the three mobile networks currently licensed to operate in zambia. this extensive coverage obviously offers a great opportunity to enhance the standards of living of our people. as we embrace mobile banking, the primary objective of zambia ’ s mobile banking framework should be to empower the millions of citizens who do not have access to conventional banking. the essential spirit of mobile banking should be financial inclusion. in this regard, facilitating mobile banking will contribute to the distribution of resources to productive activities such as farming as well as directing resources to areas where there are most needed. in addition the policy framework should be flexible enough to allow the industry players to explore various business models. to this end the national payment systems act of 2007 has provided a platform for businesses involved in mobile banking and money transmission to be designated. the need for effective regulation to ensure a stable financial sector and protection of consumers is vital. nevertheless, regulation should facilitate and not impede development and must create an optimal, dynamic and agile banking environment. as regulators we must therefore be open minded to new market solutions while the developers need to constantly engage the regulator in their product development. in stressing the need for effective regulation, i must emphasise the need for providers to observe the mandate and requirements of their licences. mobile services providers must not perform banking services as this is the domain of licensed banks. finally, i also wish to stress that mobile service providers and mobile banking solutions developers need to have in place robust business continuity plans that will ensure minimum disruption to services in the event of disasters. it is not unusual for one to be turned away at customers counters on account of the lack of basic facilities due to for instance power failure or link failure when these can be mitigated where there are proper contingency plans in place. the bank of zambia will therefore ensure that sound business continuity plans are in place when evaluating new applications. ladies and gentlemen, as we develop these well meaning products, i wish to appeal to the service providers to ensure that investment in such infrastructure is complemented by investment in financial literacy. we need to ensure that we are providing individuals and communities with the level of financial education needed to grasp both the benefits and pitfalls of their easier access to financial