have a minimum level of financial acumen, confidence and knowledge as they enter into the world of work. for these reasons the bank believes that the financial literacy programme should start in the schools and proceed to focus on important life - skills such as family budgeting, savings, investments, personal debt, insurance, pensions and retirement. the scope of the programme envisaged underscores the need for broad - based participation and for a carefully phased approach. the bank has been doing some preparatory work and has come up with the following plan. we have tentatively identified a number of priority groups who, we believe, have an urgent need for more financial education to help them make optimal choices. the groups identified so far are : • students and young adults : covering secondary and tertiary students ; participants in training programmes and youth groups. • employees in the workplace : this would target, for instance, a whole range of public sector employees as well as blue - collar workers in industry and particularly the newly employed and those preparing for retirement. • niche groups : such as new and prospective homeowners under the recent government housing schemes ; and small businesses and self - employed, many of whom are under the nedco and similar programs. • community groups : which could serve as a catchment area for a variety of organizations and individuals needing this type of assistance. we would want to start with pilot projects with each of these groups and expand as we go along. as to how the programme will be organized, while the central bank will be responsible for the design and implementation of the programme, the idea is to collaborate with a number of institutions who would be invited to participate in the programme ’ s management. for instance, we would hope to work closely with the ministries of education and community development ( since the programme will involve the schools and community activities ) ; tertiary institutions ( such as uwi, utt and costatt ) ; the tobago house of assembly ; the bankers and insurance associations ; as well as with peoples ’ organizations ; and ngos. because we think that an organized financial education programme should be in the interest of the economy as a whole, we intend to establish a broader network of stakeholders from whom we will be seeking financial, technical, strategic and operational assistance. this list which is now being put together would include business groups and large companies ( like the employers ’ consultative association, the energy corporations, trinidad and tobago manufacturers association, trinidad and tobago mortgage finance and the chambers of commerce ) ; the trade union movement, the credit unions

agriculture and the sme sector, which are the engine for the economic growth of our country. hon minister, i am however, glad to note that credit to the private sector has increased significantly with the personal loans category accounting for the largest beneficiary of credit followed by the agriculture sector. i must hasten to mention however that in striving to increase credit, banks must always comply with the regulations as stipulated in the banking & financial services act to ensure the safety of customers ’ deposits. furthermore, much more credit needs to be directed to sustainable productive sectors like agriculture, manufacturing and tourism. this entails increasing borrowing options available to the small scale farmers and the sme sector. at current levels, interest rates are too high for the smes to access credit and venture into meaningful projects. in order to reduce the incidences of default, the bank of zambia has through nb circular 3 / 2008 of december, 2008 made it mandatory for every lender in zambia to go through the credit reference bureau. any loans approved without passing through the credit reference bureau will attract regulatory action. this will undoubtedly help to reduce the cost of borrowing. i therefore, urge banks and other financial institutions to continue reviewing the cost of borrowing as part of the process to improve smes access to the much needed finances to expand their operations, employ more people, and thereby provide impetus to significantly reduce poverty rates in the country. it is also my hope that the coming on board of the citizens economic empowerment commission will significantly aid the development of the sme sector. hon minister, distinguished ladies and gentlemen, as a direct consequence of being an open economy, zambia has not been spared by the effects of the current global financial turmoil. as you are aware, the decline in the copper prices on the world market has negatively affected the operations of the mining sector, leading to downsizing and job losses. contributions by the mining sector to government revenue is also expected to decline in the 2009 while foreign exchange in the market has declined. the unprecedented high prices of fertilisers and other agricultural inputs also contributed to the current high food prices. these and several other factors have resulted in the depreciation of the kwacha against other international currencies as well as high inflation which closed the year at 16. 6 % from 8. 9 % in 2007. hon minister, the economic outlook may not be rosy now. the challenges may be huge but at the same time not insurmountable. you will agree with me