caleb m fundanga : exploring and creating financial opportunities in zambia remarks by mr caleb m fundanga, governor of the bank of zambia, at the official opening of venture capital workshop, lusaka, 26 january 2010. * * * the managing director, slyvettan investment limited, mr robert masiye distinguished resource persons, dr peter njang and mr kenny rice distinguished participants members of the press ladies and gentlemen i am greatly honoured to officiate at this important workshop which is aimed at exploring and creating financial opportunities in zambia. i wish to extend a warm welcome to all participants and resource persons, particularly those who have travelled from outside the country. mr chairman, i would like to commend slyvettan investment limited for organising this important workshop. this workshop which is aimed at increasing access to capital by local entrepreneurs through venture capital is indeed more than timely as the country strives towards financial deepening, wealth creation and reducing the levels of unemployment. in order to achieve this, affordable financial services should be available to the majority of businesses. it is also gratifying to note that, potential investors will present their projects for possible funding at this workshop. let me begin by giving a brief perspective of the enormous investment potential this country possesses. zambia is a country with abundant natural resources and human capital. it is a centrally located country with eight neighboring countries and close proximity to the large market of south africa. it also boasts of a suitable climate and peace. the country possesses all the necessary attributes for sustainable economic growth and development. competitive production costs, incentives, and reforms have also enhanced the attractive investment climate for both local and foreign investors. numerous investment opportunities exist in the agriculture, manufacturing, tourism and mining sectors across various regions of the country. almost all provinces in zambia remain potential areas of investment whose resources remain largely untapped. its active participation in the sadc trade protocol and the comesa / fta offers preferential tariff access to a market of nearly 380 million people. a key challenge in developing this economic potential and enhancing the wealth creation capability of zambians to drive growth and development is the ability to access long term investment capital especially for economically viable projects at start - up level. financial institutions are critical in this process of mobilising and channeling these investment resources. to do so successfully, the industry must identify the constraints to the provision of finance and credit and provide innovative solutions to address them. such innovations may include venture capital funds, structured finance products, equity and other innovations that

. 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.