regard, i am pleased to inform you that the fsdp has prioritised financial education so as to increase the level of financial literacy and awareness of alternative payment methods. i would like to urge all financial service providers to not only take advantage of this initiative but also to design their own programmes to sensitise their customers of the innovative products they offer or plan to offer which promote financial inclusion. furthermore, as bank of zambia we welcome the innovations by the banking sector and other financial service providers aimed at enhancing financial inclusion. however, it is our responsibility to ensure that these services are provided in a safe and efficient manner. in this regard, the bank of zambia reviews these banking products before their introduction to ensure that they comply with the existing prudential and statutory financial sector requirements. in particular, the central bank ’ s review process focuses on adherence to risk management guidelines and the anti - money laundering regulations as well as prudential guidelines that detail minimum, “ know your customer ” requirements that financial institutions should adhere to. the overarching objective of all this is to ensure that our financial system is safe sound and stable. in a nutshell, there is an existing supervisory framework to ensure the safety of mobile banking solutions. this framework will continue to be reviewed in line with the changes in the mobile banking space. as you may be aware, some of these innovations may require collaboration with the regulators in the telecommunication sector. as such it is our intention to work closely with the zambia information and communication technology authority in promoting safe and sound mobile banking services. mr chairman, it is also worth noting that since the last mobile banking conference in 2009, a number of positive developments have occurred in the telecommunication sector. for instance the partial privatization of the zambia telecommunications company ( zamtel ) will result in intensified competition in the sector. this will no doubt lead to better quality service for the consumer. further, following the liberalization of the international gateway, we have already seen mobile service companies reducing their rates significantly. this, coupled with the now affordable cell phone handsets, will enhance access to mobile phone services and an opportunity for many of our people to be financially served. finally, ladies and gentlemen, given the innovations around mobile banking and its attendant challenges, it is our expectation that this workshop will encourage dialogue between different market players in zambia and within the region. this conference provides an opportunity for such dialogue and i am glad that it takes cognizance of a dynamic market environment, paying special attention to

caleb m fundanga : launch of info - zambia bank student loan scheme remarks by dr caleb m fundanga, governor of the bank of zambia, at the launch of the indo - zambia bank student loan scheme, mulungushi university, kabwe, 21 april 2009. * * * hon. minister of education, professor geoffrey lungwangwa, mp the chairman of mulungushi university council, mr costain chilala the vice chancellor of mulungushi university, professor vernon chinene the chairperson of indo - zambia bank limited, mrs o moyo the managing director of indo - zambia bank limited, mr s r shukla members of staff of mulungushi university and indo - zambia bank limited members of the press invited guests ladies and gentlemen i am grateful to the vice chancellor of mulungushi university, professor chinene, for extending an invitation to me to witness the launch of the student loan scheme by our minister of education hon. professor lungwangwa. chairperson, i am reliably informed that the student loan scheme being launched today is the latest among the many product initiatives that indo zambia bank limited will be launching in the near future. the student loan scheme represents a major shift from the traditional loan schemes that have for a long time characterised traditional banking models in zambia. chairperson, the bank of zambia supports the introduction of innovative products such as the student loan scheme, a service that will allow parents and guardians who bank with indo zambia bank limited to access loans to meet university fees for their children at concessionary rates. hon. minister, this loan scheme being launched today provides a real opportunity for human capital development, which is necessary for national development. it enables children who would otherwise be excluded from the educational system have decent opportunities to receive education, as their parents can now access loans specifically targeted at meeting their educational expenses. ladies and gentlemen, a nation ’ s development depends on the levels of skills among its people and it is our expectation that the launch of this scheme will contribute towards this noble cause. to this end, i would like to encourage parents and guardians to use the student loan scheme in order to realise the vision of educating their children. chairperson, what we are witnessing today represents an initiative by banks to respond to the needs of the community. as the central bank, we commend your bank for this initiative, which was borne out of the identified need to develop financial products that address problems in our society. chairperson, ladies and gentlemen, let me end