national development plan ( fndp ) from 2006 - 2010 whose broad macroeconomic objectives for the plan period are as follows : • to accelerate pro - poor economic growth ; • to reduce and stabilise inflation ; and • to sustain a viable balance of payments and external and domestic debt position. at this juncture, ladies and gentlemen, allow me to share with you my understanding of the role of the leasing sector in economic growth. clearly, the remarkable economic gains that i have outlined above would not have been possible without the leasing sector ’ s contribution. leasing companies are specialized lenders that provide asset - backed finance. the assets financed by leasing companies include plant and machinery and motor vehicles. traditionally, these assets have excluded chattels or personal moveable assets. though the leasing sector has existed in zambia since independence, the formal supervision of the leasing sector by the bank of zambia only began in the 1990s. it is pleasing to note that the leasing sector has a bright future in zambia as evidenced by its growth. since the liberalisation of zambia ’ s financial sector, the contribution to private sector credit of leasing companies has increased. in the period december 2001 to december 2006, total leases increased from k67, 161 million to k206, 972 million, representing an average annual growth rate of about 25. 2 %. at the same time, the performance of the leasing sector was satisfactory as on average, leasing companies maintained adequate capital and reserves relative to their risk profiles and the sector has been consistently profitable. notwithstanding this improved performance of the leasing sector, i am aware of a number of constraints the financial sector in general is facing, including the low financial intermediation, limited access to financial services for the rural population and low - to - middle income earners, high cost of funds, lack of product diversity and underdeveloped money and capital markets. to redress these impediments to economic growth and as an integral part of the pro - poor growth strategy, the government ’ s objective is to enhance financial intermediation and improve access to financial services both in urban and rural areas. to this end, a five year financial sector development plan ( fsdp ) was prepared in 2004. this plan aims at promoting the development of a financial system that is stable, sound and market - based to support efficient resource mobilization, which is necessary for economic diversification, sustainable growth and poverty reduction. currently, the key recommendations of the fsdp are under implementation. mr

caleb m fundanga : launch of info - zambia bank student loan scheme remarks by dr caleb m fundanga, governor of the bank of zambia, at the launch of the indo - zambia bank student loan scheme, mulungushi university, kabwe, 21 april 2009. * * * hon. minister of education, professor geoffrey lungwangwa, mp the chairman of mulungushi university council, mr costain chilala the vice chancellor of mulungushi university, professor vernon chinene the chairperson of indo - zambia bank limited, mrs o moyo the managing director of indo - zambia bank limited, mr s r shukla members of staff of mulungushi university and indo - zambia bank limited members of the press invited guests ladies and gentlemen i am grateful to the vice chancellor of mulungushi university, professor chinene, for extending an invitation to me to witness the launch of the student loan scheme by our minister of education hon. professor lungwangwa. chairperson, i am reliably informed that the student loan scheme being launched today is the latest among the many product initiatives that indo zambia bank limited will be launching in the near future. the student loan scheme represents a major shift from the traditional loan schemes that have for a long time characterised traditional banking models in zambia. chairperson, the bank of zambia supports the introduction of innovative products such as the student loan scheme, a service that will allow parents and guardians who bank with indo zambia bank limited to access loans to meet university fees for their children at concessionary rates. hon. minister, this loan scheme being launched today provides a real opportunity for human capital development, which is necessary for national development. it enables children who would otherwise be excluded from the educational system have decent opportunities to receive education, as their parents can now access loans specifically targeted at meeting their educational expenses. ladies and gentlemen, a nation ’ s development depends on the levels of skills among its people and it is our expectation that the launch of this scheme will contribute towards this noble cause. to this end, i would like to encourage parents and guardians to use the student loan scheme in order to realise the vision of educating their children. chairperson, what we are witnessing today represents an initiative by banks to respond to the needs of the community. as the central bank, we commend your bank for this initiative, which was borne out of the identified need to develop financial products that address problems in our society. chairperson, ladies and gentlemen, let me end