sub - chest run by barclays bank zambia plc. this has been exemplified by fewer deposits at the sub - chest each successive period. our investigations have revealed that this is driven by the high intensity of cash transactions within the region, largely because very few people, particularly the small - scale farmers, have bank accounts. we implore you to encourage the use of non - cash payments for your transactions. it is not only a safer means of transacting but it also enables the authorities to keep track of the level of economic activity in the area. in this regard, we also ask that the commercial banks design products and services whose cost structures are suitable for the economic environment of the region. financial institutions in general need to offer structured financing that best suits the zambian economic landscape. it is only through such activities that we will see further developments in the whole zambia rather than the few areas along the line of rail. mr. chairman, ladies and gentlemen, we have come to chipata not only to tell you what we expect of you but also to listen to what you expect of us. i therefore declare this meeting open and invite you to make your contributions. i thank you!

caleb m fundanga : how the bank of zambia ’ s policies are impacting eastern province developments remarks by dr caleb m fundanga, governor of the bank of zambia, at the eastern province chamber of commerce and industry open meeting, chipata, 17 january 2008. * * * • the chairman – eastern province chamber of commerce and industry ( epcci ) • members of the executive committee – epcci • epcci members • invited guests • ladies and gentlemen first and foremost, i must state that i am pleased to have finally made the trip to eastern province under the invitation of the epcci. the visit was planned for last year but due to other commitments i could not make it. in this regard, i made it a point to make sure that i visit the province before the end of the first quarter. i am happy that we have actualized our plans during the first month. it is our hope that we will also be able to visit other provincial towns off the line of rail during the course of the year. mr. chairman, one may question what is the purpose of the bank of zambia to visit these outlying areas? the answer is simple and is drawn from our mission statement – which is “ to formulate and implement monetary and supervisory policies that will ensure price and financial system stability ”. our visit is therefore, to enable us assess the extent to which our policies are impacting development in the eastern province. for a start, we can rightfully boast that as a country we have achieved single digit inflation for the second year in a row and we have had no financial institution failures in the recent past. these successes are the result of monetary and fiscal policies that have changed the economic landscape of zambia. we have been fortunate that the successes have come at a time when we are seeing renewed economic interest in zambia. investments in mining and other sectors have significantly increased, and more importantly, the eastern province has not been left out. ladies and gentlemen, we have been following the developments in eastern province with keen interest ; hence our visit to see for ourselves what is going on. i must say that we are impressed with what we have been able to find out. it is clear that income levels have risen in the region and this has been driven by the boom in agriculture. this is an encouraging development. one of our primary concerns as policy makers is to ensure that development is not restricted or concentrated along the line of rail. we therefore urge you to use your enhanced income levels to invest in capital