caleb m fundanga : strengthening and promoting the zambian private sector speech by dr caleb m fundanga, governor of the bank of zambia, at the celtel loan signing ceremony, lusaka, 12 december 2006. * * * managing director, celtel zambia plc senior government officials present chief executives officers of commercial banks and other financial institutions present management and staff of celtel zambia plc members of the press distinguished invited guests ladies and gentlemen it gives me great pleasure to join you today at this celebratory event for the celtel zambia plc usd105 million 5 - year, two - tranche, local and foreign currency syndicated term loan facility. undoubtedly this event marks a high - point for all those working at strengthening and promoting the zambian private sector. in this regard, this event clearly unveils and in so doing reveals the hitherto relatively unknown sophistication and ability of the zambian private sector and surely the coming of age of our nascent banking and financial services sector. ladies and gentlemen, it is gratifying to observe that the facility we are celebrating today was initially launched as a usd70 million facility but was subsequently raised to usd105 million following significant oversubscription. it is equally gratifying that of the usd105 million, usd86 million or 82 per cent was raised in zambian kwacha primarily from zambian commercial banks with some participation from international development finance institutions. this is a demonstration of the growing confidence in both zambian corporate borrowers and business climate by both domestic and international banks. as bank of zambia, we believe that the recent economic developments, such as, the attainment of single digit inflation for the first time in three decades in april 2006 and sustaining low - level inflation for nearly three consecutive quarters so far to november 2006 are supportive of this initiative. these developments also indicate that zambia is able to rally foreign private capital to improve the domestic financing limitations and support efforts of encouraging faster economic growth, private sector investment and exploitation of the country ’ s huge potential in various sectors. ladies and gentlemen, we also believe that events such as this complement the outcomes of government ’ s economic reform agenda which in part is aimed at strengthening our country ’ s creditworthiness as demonstrated by the attainment of the enhanced highly indebted poor countries initiative ( hipc ) completion point in april 2005. ladies and gentlemen, please allow me to elaborate. in order to strengthen and sustain our new status as a credit

caleb m fundanga : recent economic developments in zambia talking notes by dr caleb m fundanga, governor of the bank of zambia, with the business community in kitwe, kitwe, 25 july 2011. * * * recent economic developments introduction the zambian economy has recorded significant positive developments following the implementation of various reforms. this is reflected in positive real gdp since the early 2000s, low and falling inflation, a downward trend in lending interest rates, favourable external sector performance as well as relative stability in the exchange rate of the kwacha. these developments can be attributed to improved monetary and fiscal policy management and improved economic management, which in turn has enhanced investor confidence. real gross domestic product ( gdp ) zambia ’ s national output, as measured by gross domestic product ( gdp ), has grown by an average of 6. 4 percent annually in the last five years. the zambian economy grew by 7. 6 percent in 2010, compared to 6. 4 percent in 2009, and exceeded the target of 5 percent. the key contributors to the sustained increase in economic activity have been increased production in the mining, agricultural and construction sectors. the agricultural sector recorded a historical bumper maize harvest of over 2. 8 million metric tonnes during the 2009 / 10 season and another 3. 0 metric tonnes during the 2010 / 11 harvest season. this was supported by favourable weather conditions and the farmer input support programme. performance of the mining sector increased following higher output arising from increased capacity utilisation at various mines and investments into operations at various mines. metal mining was the main driver of this growth, with copper and cobalt output growing by 17. 4 % and 49. 4 % to 819, 159. 19 mt and 8, 781 mt, respectively. construction output was driven by increased public and commercial infrastructure projects around the country, as well as continued high demand for housing. this was supported by expansion in domestic production of cement. inflation consistent with the favourable performance in economic growth, the country has succeeded in lowering inflation. inflation has declined from 17. 2 percent in 2003, 9. 9 percent in 2009 and stood at 7. 9 percent at end - 2010. inflation continued to be moderate, and stood at 9. 0 percent as at june 2011. the decrease in inflation over the years can be attributed to prudent monetary policy and a relatively stable exchange rate. the increase in food supply, arising from the favourable crop harvest, has also been a key factor in moderating inflationary pressures in light of high