caleb m fundanga : winning with leasing speech by dr caleb m fundanga, governor of the bank of zambia, at the “ winning with leasing ” seminar, lusaka, 21 - 23 february 2007. * * * • mr chairman • chief executives and representatives of banks and leasing companies • representatives of businesses organizations ; • distinguished ladies and gentlemen let me first express my sincere gratitude for being invited to officiate at this important regional leasing seminar. it is my hope that this interaction will give us a better understanding and appreciation of the important contributions that the leasing sector has made and continues to make to the economic growth of this country. as the title of the seminar “ winning with leasing ” suggests, it is only by winning in all our efforts that we will provide meaningful contributions to the development of this country. mr chairman, before i talk about your role in the growth of the economy, allow me to first give a brief account of the macroeconomic developments in zambia in the recent past. i know that many of you have been following the economic developments in the country. the economy has performed relatively well in recent years, with positive real gross domestic product ( gdp ) growth and inflation as well as interest rates coming down. during the period 2001 - 2005, growth in real gdp averaged around 5 % per annum. more recently, in 2006, it is estimated that the economy grew by close to 6 %, marking the eighth consecutive year of positive real growth in output. this positive economic growth has been broad - based, extending beyond the recovery of the mining sector and has withstood adverse shocks, such as, droughts and increases in oil prices. for example in 2006, real gdp growth was largely driven by the mining, construction, and transport sectors. other sectors that registered positive growth were agriculture, tourism, manufacturing, wholesale and retail trade and the services sectors. ladies and gentlemen, bringing inflation down to single digits has been government ’ s goal for a long time. therefore, it is pleasing to note that last year inflation fell to its lowest level in 30 years. at end december 2006, the annual rate of inflation had fallen to 8. 2 % compared to the annual target of 10 % and the 15. 9 % outturn in 2005. in january 2007, it remained in single digit level of 9. 8 %. these unprecedented developments in inflation have been due to continued implementation of prudent monetary and fiscal policies, coupled with increased food supply. in line with lower inflation and yields on government

k1. 5 billion from k250 million. i wish to urge all leasing companies to make sure that they take steps to meet the required minimum capital. let me conclude by paying tribute to the organisers of this seminar, sapitwa finance. mr sudhir amembal the principal resource person is a renowned authority in leasing, having undertaken various leasing consultancies and training worldwide and being an author of various leasing publications and books. i am very grateful that he has found time to come to zambia and share his vast experiences with us. i am glad to note that this seminar has brought together key players in the economy and other stakeholders. i thank you for your attention.