the lower end of the market. however, most of the credit extended by banks and microfinance institutions is targeted at individuals in formal employment or already established enterprises. only an insignificant amount is extended to start - up initiatives or the informal sector. this has been exacerbated by the inability of entrepreneurs to articulate and sell bankable projects through robust business plans. in addition, it is common knowledge that zambians prefer to be in formal employment rather than engage in entrepreneurial activities on a full time basis. the small number of educated zambians engaging in entrepreneurial activities limits the scale of indigenous businesses as evidenced by the non participation of zambians in major sectors of the economy like mining or manufacturing. it is however, important to realise that individual entrepreneurs as well as small and medium sized enterprises form the engine of economic and social development as they generate the much needed employment for our people. hence the need to encourage all efforts aimed at stimulating entrepreneurship. distinguished invited guests, our institutions of higher learning play an important role by molding and developing innovative and creative mindsets amongst our young people. with this belief in themselves, young people can be productive, take responsibility in their respective communities and ultimately drive our economy forward. we need to remind ourselves that google was founded by students ; facebook was founded by a student ; and even microsoft was formed by bill gates as a student. ladies and gentlemen, let me assure you that the bank of zambia is committed to ensuring the availability of finance to viable entrepreneurs including small and medium sized businesses. to this end, the bank continues to spearhead the financial sector development plan, which is aimed at strengthening the zambian financial sector as well as guiding efforts for realising the vision of a stable, sound and market based financial system that would support the efficient mobilisation and allocation of resources necessary for economic diversification and sustainable growth. in concluding, i wish all entrants to this competition, the best of luck. i further with to congratulate in advance the ultimate winners of this inaugural business plan competition – venturecomp 2010. i thank you.

is the possibility of the recipients remaining dependant on money transfers. in zambia remittances are mainly used to secure daily family needs and to improve life style, as well as to construct or reconstruct houses, and to finance family ceremonies like weddings and funerals. only a small portion goes into banks as savings. however in order to alleviate poverty, it is important that remittances are utilized in an effective manner that will contribute to economic development. it is therefore imperative that some of these funds are channeled into the financial sector and invested in meaningful projects like real estates, manufacturing and agricultural sectors. to achieve this, it is key that commercial banks are involved in the transmission of such funds. in addition, money transfer companies like western union and money gram have played a significant role in transferring remittances. their wide geographical extension throughout the country covering many rural areas has complemented adequately the rather slow expansion of the banking sector in facilitating money transfers. the recent development of the payment system in zambia has also played a key role in the movement of funds through official means. nevertheless, unofficial flows still remain high signifying a business opportunity for banks. however, banks and other financial institutions, despite being safer, are perceived to be more expensive than the alternative unofficial means to the point of inducing many people in diaspora to stick to unofficial means. it is therefore important for banks to be mindful of their cost structures for such services. in this regard, the bank of zambia welcomes the introduction of the “ ecobank rapid transfer ” and the “ non - resident african account which we have been informed will be lower cost products. this will no doubt increase the level of access to financial services in the country as well as enhance the level of competition by increasing the number of participants in the market. we hope that the introduction of these lower cost products will push the transfer commissions in this market downwards. on its part, the bank of zambia, working with several stakeholders, including bankers association of zambia, has over the years made progress in modernising the payment system. the information technology which serves as a major platform for modern payment systems to operate has also advanced. these developments have set the stage for the development of innovative payment systems capable of serving consumers in a cost effective way. further, the growth of the number of players as well as the increasing number of initiatives require a robust supporting legal infrastructure to govern the payment system. to this end, the national payment systems act no. 1 ( npsa