zambia commits to continue supporting the economics department and research programmes at unza and hopes that the university will live up to its obligations under the framework of cooperation to be signed today. we challenge the economics department at unza through the vice chancellor to scale up its research activities in issues of interest to the bank and the zambian economy in general. for this is what this mou entails. we also call upon other industry players in the financial sector to emulate our noble contribution in building human capital and research capacities at this important institution. this is important to ensure that our financial sector operates at the cutting edge of knowledge and innovation. i have no doubt therefore, that such investment will yield returns in the long run as knowledge is a secure investment. i thank you for your attention.

caleb m fundanga : transparent pricing initiative in zambia remarks by dr caleb m fundanga, governor of the bank of zambia, at the official lunch of the transparent pricing initiative in zambia, lusaka, 6 june 2011. * * * the vice president, global programs microfinance transparency, ms alexandra fiorillo ; the president of the association of microfinance institutions of zambia ( amiz ), dr. george mulomboi ; executive secretary of association of microfinance institutions of zambia, mr webby mate ; chief executives and representatives of microfinance institutions ; colleagues from bank of zambia ; distinguished invited guests ; members of the press ; ladies and gentlemen i would like to thank microfinance transparency and the association of microfinance institutions of zambia for inviting me to officiate at this important workshop on transparent pricing. i also wish to welcome our visitors from outside the country. i hope you will enjoy the wonderful zambian weather. madam vice president, the importance of microfinance to an economy cannot be overemphasised. the provision of financial services to the majority of people and the small and medium enterprises who have traditionally been excluded from the formal banking sector is a key element to poverty reduction and economic development. mr president, as you are aware, in zambia, the recent finscope survey confirmed that levels of access to financial services continue to be low with only 37. 3 % of zambia ’ s adult population reported to have access to a financial services. the survey however showed that the number of people accessing microfinance was on the increase. the role that microfinance institutions play in financial inclusion is therefore very crucial. over the years, the microfinance institutions in zambia have played a significant part in the provision of financial services, particularly for low - income households. although access to finance remains low, microfinance institutions have had a somewhat positive impact on the economic activity of low income households, in both urban and rural areas. i am hopeful that the microfinance sector will continue to bridge the financing gap especially to the unserved population. however, the bank of zambia continues to receive a number of customer complaints on the high cost of micro loans in the country. it has been observed that the interest rates charged by some institutions exceeded 300 % per annum in some cases. furthermore, in most instances the effective rate of interest and other charges are not disclosed to the customers resulting in them paying much more that what was initially publicised to them.