caleb m fundanga : bank of zambia ’ s information dissemination programme speech by dr caleb m fundanga, governor of the bank of zambia, on the launch of the bank of zambia information dissemination programme, lusaka, 28 may 2007. * * * governor, kindly give brief introductory remarks on behalf of the bank of zambia board, management and staff, and indeed on my own behalf, i wish to sincerely thank the zambia national broadcasting corporation ( znbc ) for this opportunity to launch the bank of zambia information dissemination programme. this programme is part of our comprehensive strategy to inform the general public and all our stakeholders on the role of bank of zambia in the economy. what is the primary role of the bank of zambia? just to remind the listeners, the bank of zambia ’ s primary role is to formulate and implement monetary and supervisory policies that will ensure price and financial system stability. our vision, in this regard, is to become a world class central bank. what is your general assessment of the recent performance of the zambian economy? in the past few years, the zambian economy has performed relatively well, recording positive real gross domestic product ( gdp ) growth, with inflation and interest rates coming down. specifically, what have been the developments in output? during the period 2001 - 2005, growth in real gdp averaged 5. 0 % 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 growth performance has been broad - based, extending beyond the recovery of the mining sector and withstanding adverse shocks, such as droughts and record increases in oil prices. in 2006, real gdp growth was largely driven by the mining, agriculture, construction, transport and tourism sectors. last year, zambia achieved single - digit inflation in 30 years. what were the main contributing factors to this achievement? bringing inflation down to single digits has been government ’ s goal for a long time. it is, therefore, pleasing to note that last year, inflation fell to its lowest level in 30 years. at the end december 2006, the annual rate of inflation had fallen to 8. 2 % from 15. 9 % achieved in 2005 and was well below the target of 10 %. this positive development in inflation was due to continued implementation of prudent monetary and fiscal policies, coupled with increased food supply. this was despite the persistent rise in oil prices on the world market. this year so far,

you pass on the tales of the mukuyu tree which have been passed on to you from one generation to another so that the spirit of the mukuyu tree continues to live on. distinguished guests, ladies and gentlemen on our part, the bank of zambia board, management and staff are committed to the mukuyu tree project. we shall ensure that the process that we have started does not end here. the mukuyu tree is depicted on the k50, 000. 00 note. it has also been featured on the bank of zambia christmas card for 2006. there are long term plans to erect a kiosk which will house an information desk for information dissemination to both local and foreign tourists. the kiosk will also sell refreshments. my request is that we all work together to protect and preserve an important part of our national heritage, the mukuyu tree popularly known as the slave tree. i thank you for joining us at this great occasion and i wish you all a merry christmas, and a happy 2007. may god bless you.