and also reviews the control environment in which this information is produced. in a growing economy like ours, the need for high quality financial information is very critical. financial information provides the basis for all financial decision making at all levels of economic activity, from households to large international organizations. remember, there is no high quality information without the work of accountants and that is one reason why accountants play such a critical role in today ’ s global financial system and the global economy. you provide financial information that helps businesses and governments run properly. you provide investors and creditors with reliable information for decision making. you also provide assurance services founded on integrity and independence. distinguished members, the vision of this country is to become a prosperous middle income country by the year 2030. in order for us to attain this vision, we need to improve the financial infrastructure in zambia. the government intends to achieve this through the implementation of the financial sector development plan. an improved financial infrastructure will result in efficient capital and money markets which will in turn attract foreign investment into our economy. however, in order to attract and retain foreign investment, we need to have the ability to provide investors with transparent information that will result in efficient investment decisions, higher returns and greater investor confidence. without confidence, investors will simply find somewhere else to invest their money. high quality, investor oriented and transparent financial reporting attract both seekers and providers of capital. this is where accountants come in, to ensure the provision of reliable and transparent financial information to potential investors and other users of financial statements. ladies and gentlemen, i am certain that as members of zica you take pride in helping improve the financial sector in zambia. this is done through standard setting. i recognize the fact that accounting standards provide the foundation for the production of high quality financial information. i am aware that zica has adopted international financial reporting standards ( ifrs ’ s ) in full and that all members of zica are obliged to ensure compliance with ifrs. however, it is unfortunate that despite zica adopting ifrs, it is not a legal requirement under the securities act, the insurance act, the banking and financial services act and also at the lusaka stock exchange. nonetheless, i wish to state that efforts are underway to make ifrs a mandatory requirement for financial institutions. it is important for this provision to become a legal requirement in order to enhance the credibility of financial statements that are being produced by institutions governed by the various laws. i wish to state here that as much as it is important to follow

% recorded in 2008. almost all key sectors of the economy recorded positive growth except for restaurants and hotels which saw negative growth due to lower tourist and business travel arrivals during the financial crisis. annual overall inflation slowed down, reverting to single digit level of 9. 9 % in december 2009 from the 16. 6 % recorded in december 2008, and was in line with the original end - year target of no more than 10 %. this outturn was attributed to the decline in both annual food and non - food inflation. in the external sector, zambia ’ s external position showed remarkable improvement as reflected in the build - up of gross international reserves to 5. 1 months of import cover in 2009 from 2. 1 months of import cover in 2008. zambia ’ s overall balance of payment position is expected to remain favourable in 2010 due to the rebound of copper prices on the international market as well as the expected increase in copper production as some mines increase production to full capacity and the resumption of production at some mines. the rebound in the international price of copper in the second half of 2009 and the return of foreign portfolio flows resulted in an appreciation of the exchange rate of the kwacha by 4 % at the end of the year. however, fiscal performance in 2009 was weak, mainly due to the global economic crisis, which reduced domestic revenues. despite this, government remained within the programmed domestic financing for the year. ladies and gentlemen, the financial sector has remained resilient despite the adverse effects of the recent global financial crisis. currently, the zambian financial sector is characterised by high liquidity levels, reflecting tighter lending standards in the wake of the lessons from the global financial crisis leading to marked decline in private sector lending. as a result, the demand for the relatively risk free government securities has increased causing a decline in yield rates on government securities. the decline in government securities yield rates and relatively low inflation experienced since the beginning of the year should contribute to a decline in banks lending rates and thus stimulate borrowing by the private sector. ladies and gentlemen, the critical role the accounting profession plays in enhancing economic development cannot be over - emphasized. one of the most important role the profession plays in any organization is to provide accurate, reliable and high quality financial information which communicates an organization ’ s operating results, its overall health, as well as raise the transparency of its various operating activities. the other role is the audit function, both internal and external, which provides independent assurance of the information produced by accountants