the crisis and evaluating the efficacy of the various measures that are being implemented. impact of the global economic crisis on zambia the zambian financial sector has so far not been directly adversely affected by the credit crunch as reflected in the continued stability of the banking sector with most banks being adequately capitalized and the inter - bank market operating as before. this is mainly due to the sector ’ s limited integration into the international financial markets. further, our financial sector had no exposure to toxic assets, which led to the credit crunch in most developed markets. however, the current global financial crisis, with the subsequent global economic recession, has adversely affected zambia, like most global economies, mainly through : reduced revenue earnings from mineral resources ; job losses, particularly in the extractive industry ; lower foreign capital inflow ( both foreign portfolio investment ( fpi ) and foreign direct investment ( fdi ) ) ; rising domestic inflation driven by pass - through effects of the depreciation in the exchange rate of the kwacha against major currencies ; and declining number of foreign tourists. revenue earnings from mineral resources as you may know, your excellencies, zambia, like many african countries, relies heavily on commodity exports. this has made the country more vulnerable to the global downturn. the global financial crisis and the plummeting commodity prices on the international market have negatively affected government revenue. the global economic recession has resulted in a reduction in world demand for copper, which in turn, has led to the precipitous fall in copper prices. copper prices at the london metal exchange ( lme ) fell from highs of us $ 8, 980 per tonne in july 2008 to as low as us $ 2, 812 per tonne in december, 2008. the dramatic decline in the price of copper has entailed reduced earnings from copper exports by mining companies and subsequently reduced earnings for the government from mineral royalties and corporate taxes from this source as well as falling income taxes from employees in the mining and related sectors. the reduced earnings for the mining sector may translate into lower investments and production. further, some mining companies, which were carrying out exploration works, have suspended these activities. ultimately, all this lead to job losses in the country ’ s extractive industry, leading to lower income tax revenue. in addition, the downturn will reduce government ’ s capacity to develop the much needed infrastructure as it may have to scaledown its capital expenditure in line with lower realized revenue. loss of employment in the

as graduates from the zambia institute of banking and financial services, your progress and performance will be closely monitored and you will be looked upon as role models. i urge you to set the standards for others to emulate. i am confident that all of you will live up to the highest standards and will not disappoint us. i once again congratulate you and your parents, for it is only through their guidance that you are able to achieve what you have today. i wish you all, especially those graduating and those witnessing the graduation of their loved ones, a joyful and wonderful day. thank you.