agricultural lending. 8. allow me to conclude my remarks by highlighting the need for banks and non - bank financial institutions to consider their customers and potential customers when determining the pricing of their products and services. the public continues to decry the high level of charges and interest rates for banking services and products. 9. the boz has previously and will continue to appeal to the financial sector to review their charges and to explore ways of enhancing efficiency in service delivery. 10. the majority of zambians cannot afford the current banking charges and are effectively shut out of the financial system. more affordable banking services will draw in a larger number of zambians to the financial system, which will in turn be beneficial to the development of the banking system and the economy at large. 11. according to a market knowledge study called the ‘ finscope demand – side survey ’ which was conducted in 2005 to review the inclusiveness of the zambian financial system, two thirds ( or 66. 3 % ) of the zambian adult population do not have access to financial services and only one third ( or 33. 7 % ) use banks, other formal and informal financial services and products ( such as those offered by microfinance and savings clubs ). furthermore, only 15 % of the adult population access commercial bank services. a huge market therefore exists to tap if transaction costs are reduced. 12. finally, honourable guest of honour, let me congratulate natsave for its participation in addressing the issue of increased access to financial services for the people of lukulu despite the challenges of physical access and resultant higher transaction costs. i thank you.

caleb m fundanga : increasing access to financial services in zambia remarks by dr caleb m fundanga, governor of the bank of zambia, at the official opening of national savings and credit bank, lukulu branch, lusaka, 27 may 2009. * * * the guest of honour ; the honourable minister of finance and national planning ; dr. situmbeko musokotwane, mp the honourable minister for western province ; the deputy permanent secretary for western province ; the honourable members of parliament for lukulu east and west ; the acting ngambela imbua imwaka representing the barotse royal establishment ; the district commissioners for lukulu and kaoma ; the board and management of national savings and credit bank ; distinguished invited guests ; ladies and gentlemen. 1. on behalf of the bank of zambia governor, i would like to thank the board of directors and management of national savings and credit bank for inviting us to the occasion of the opening of another rural branch in zambia, this time in lukulu. 2. national savings and credit bank ( also commonly referred to as natsave ) was established on 1 april 1972 by the national savings and credit bank act of 1972 and it commenced business operations in march 1973. the amendments to the banking and financial services act of 2000 extended the supervisory authority of the bank of zambia to natsave which was until then, supervised by the ministry of finance and national planning ( mofnp ). 3. natsave was set up to administer savings and to provide credit facilities in urban, periurban and rural areas to individuals and small business enterprises. its business strategy is to target the low and medium income earners through the establishment of a sustainable network of outlets and by offering sustainable financial services. the bank has continued to be a leading public vehicle in ensuring financial inclusion to all citizens across the country through the vast branch network. currently, natsave has 27 branches ( including lukulu branch ), spread across the country. 4. honourable ministers and distinguished invited guests, a key element in the strategy of poverty reduction is the provision of financial services to the majority of our people, the small and micro enterprises who have traditionally been neglected by the formal banking sector. natsave ’ s expansion program therefore has the potential to improve access to financial services and enhance competition in the financial sector. this improves financial services delivery to the zambian people and brings more of the financially excluded population to the financial institutions. the bank