. it is also important to realise that not all projects can access venture capital funds. only innovative, high quality and highly profitable projects may qualify for these funds. therefore applicants of these funds should think outside the box and provide well researched project plans that meet international standards. in this regard it is key for project promoters to collaborate and pool resources as a team instead of the usual norm of going it alone. in addition, as we are all aware, small and medium sized enterprises form the engine of economic and social development as they generate employment, and are an ingredient to growth and international competitiveness. it is therefore imperative that this key sector rises to the challenge and creates wealth through innovative entrepreneurship. a disciplined, innovative and successful sme sector will no doubt make zambia an attractive destination for more venture capital. to this effect, this workshop on venture capital should explore ways to support efficient resource mobilization for smes. distinguished ladies and gentlemen, with these few remarks, i now declare this workshop officially opened. i thank you for your attention and god bless your deliberations.

to our target of 2 percent, on the other ( figure 1 ). the economy has grown 3 percent over the past year, and there are good reasons to expect growth to remain solid next year, supported by the strong underlying momentum in domestic demand. consumer spending looks to be robust going into the fourth quarter, and ongoing gains in income and employment provide positive fundamentals. in addition, business investment should be solid, even with recent declines in oil prices. sizable fiscal stimulus has provided an important boost to demand this year and will likely contribute somewhat further next year, given the usual lags in outlays and in the effects of tax cuts on business and household spending. the most likely path for the economy is positive, although some tailwinds that have provided a boost are fading, and we may face some crosscurrents. the global growth that provided a strong tailwind going into this year has moderated. the earlier strong growth in europe and japan appears to be softening toward trend. china is shifting to an accommodative policy stance to contend with a challenging trade environment and lagged effects from its earlier tightening. here at home, the impetus to growth from fiscal policy is likely to fade going into 2020. and after being exceptionally accommodative, financial conditions have tightened in recent months. financial - 3conditions are still supportive of growth by many measures ( figure 2 ), but less so than last year. there are risks on both sides of the economy ’ s likely path. in europe, there are risks associated with deliberations over italy ’ s fiscal and debt trajectory and the united kingdom ’ s deliberations on the brexit deal. here at home, we hear from businesses that the uncertainty associated with trade policy and the implications for supply chains may weigh on business capital spending. although it is reasonable to expect fiscal spending to be extended around current levels in real terms after the bipartisan budget act expires, we cannot rule out that fiscal policy could become a headwind in 2020. the risks are two - sided. business contacts report difficulties finding qualified workers and increased costs associated with inputs, tariffs, and transportation, along with somewhat greater ability to pass through those increases to consumer prices. despite this, however, inflation remains muted overall. at 3. 7 percent, the unemployment rate is at its lowest level in 49 years, and payrolls have been growing well above the pace that is consistent with labor market stabilization. historically, the few