caleb m fundanga : moderating the impact of the global meltdown on the zambian financial system speech by dr caleb m fundanga, governor of the bank of zambia, at the official opening of standard chartered bank zambia limited ody ’ s excel centre, lusaka, 22 april 2009. * * * the chairman, standard chartered bank zambia limited, mr michael mundashi the managing director of standard chartered bank zambia limited, mrs mizinga melu distinguished guests members of the press and may i simply say ladies and gentlemen i am pleased to be here today at the official opening of the new excel centre of standard chartered bank zambia limited. this event is taking place at a time when our economy is faced with challenges emanating from the impact of the global financial and economic crisis. although the zambian financial system is not fully integrated with the world ’ s financial markets, the impact of the crisis is already clear. mr chairman, the financial turmoil has resulted in a reduction in projected global economic growth and a decline in demand for commodities. as a commodity exporting country, zambia has experienced a decline in her export receipts due to the decline in commodity prices reflecting a weak demand for these commodities. the declining export earnings and reversals in portfolio investments have been reflected in the depreciation of the local currency and consequent inflationary pressures towards the end of 2008. ladies and gentlemen, the financial turmoil facing the world today has affected all of us and we as regulators are trying to ensure stability in the financial markets. in this regard, the bank of zambia has put in place measures to moderate the impact of the global meltdown on the zambian financial system. the government also remains resolved to continue with prudent fiscal policies and economic management, which have seen a buoyant financial sector in zambia, thereby resulting in the mushrooming of branches in different locations of the country, such as the one we are inaugurating today. in spite of the uncertainties in the global economy, distinguished guests, we remain confident that the financial sector in zambia will rise above the challenge and continue to provide services to the communities where they operate. ladies and gentlemen, i have stated at various fora that it is important for banks in zambia to take actions which support the development of our economy : • banks need to open more outlets such as this one, to increase our people ’ s access to banking services, thereby empowering our citizens • banks should provide more loans to the productive sector, such

year. the recommendations from the stakeholders meeting were then sent to the fsdp steering committee in april this year. this committee endorsed the report and it is this report which is being launched today as the national strategy on financial education for zambia. once launched, it will be implemented in earnest. honourable ministers, the activities that have been carried out under this programme have been made possible by the very generous financial support extended throughout the different phases of the programme by the imf, world bank, dfid, sida and the government of the republic of zambia. of course the three regulators, boz, pia, and sec have also done their bit by seconding personnel to the fsdp secretariat and taking responsibility for the financial obligations entailed. i want to thank all of them for their commitment and dedication. it is now my singular honour and privilege to call upon the deputy minister of finance, honourable miles sampa, mp to formally launch the national strategy on financial education for zambia. thank you. bis central bankers ’ speeches