Page 7 - Zambia YellowPages 2016

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rtJREWORD

Under the guidance of the Patriotic Front Government, the past Credit to the private sector rose steeply in 2015, increasing by
five years have seen the development of a firm foundation to 20.9 percent to K27.2 billion as at end-August 2015 from K22.5
sustain broad-based and inclusive growth as well as the billion as at end-December 2014. The bulk of credit comprised
diversification and deepening of economic resilience. While the personal loans followed by credit accessed by the agriculture,
loss of President Sata in October 2014 was a devastating blow manufacturing and wholesale and retail sectors. Current
to the nation, Zambia demonstrated its political maturity in the constraints to further growth in domestic credit include tight
peaceful democratic elections which followed in January 2015 monetary conditions necessitated by the need to contain
and were won by Mr Edgar Chagwa Lungu, the Patriotic Front inflation and well as high - albeit stable - interest rates of
candidate. Since taking office, President Lungu has shown his around 20.5 percent.
passionate commitment to uplift the lives of all Zambians and
The Zambian Government remains committed to the growth of
to skilfully steer the country through future challenges.
the local bourse to facilitate long-term financing for private
For more than a decade the Zambian economy has been sector investment. To attain this, the Alternative Investment
buoyant, registering average GDP growth of around 6 percent Market was launched in April 2015 to cater for emerging
per annum which has propelled the country to lower-middle corporates that are yet to meet the listing requirements on the
main window. Furthermore, in order to increase opportunities
income status. Government remains determined to continue on
this positive and sustainable growth trajectory to become a for Zambian citizens to participate in economic development
middle income country by the year 2030, given Zambia's and to comply with listing requirements on the Lusaka Stock
Exchange, Government has begun to reduce its shareholding in
resource endowments coupled with the resilient and entrepre-
ZCCM-IH Plc, with 15.8 million shares, representing 36 percent
neurial spirit of its people.
of available shares, having so far been sold to the National
Impressive steps have been taken to enhance the business Pension Scheme Authority.
climate for private sector investment. According to the World
The US $1.25 billion Eurobond that was issued in July 2015 as
Bank's'Doing Business' report for 2016, Zambia's has improved
part of the financing required for the 2015 Budget has enabled
its ranking over a number of indicators, such as'Getting Credit'
an array of infrastructure development initiatives in the
(in 19th place globally from 24th in 2015),'Paying Taxes' (to 46th
transport, health, education and agriculture sectors. Further-
in the world from 81st in the preceding year), and in 'Dealing
more, it has allowed investments in water supply and sanitation
with Construction Permits. Overall, Zambia is ranked 97th in
infrastructure, recapitalisation of state-owned enterprises and
'Ease of Doing Business'against the regional average of 143rd.
the provision of support to small and medium scale enterprises.
The implementation of the Financial Sector Development Plan, Government shares in 29 out of 33 state-owned enterprises
which was concluded in mid-2015, resulted in the achievement have been transferred from the Ministry of Finance to the
of a number of important milestones. These include the Industrial Development Corporation (IDC) with a view to
establishment of the Credit Reference Bureau and the promo- enhancing the strategic focus of parastatals and maximising
tion and development of financial infrastructure such as bank their contribution to national development. In order to achieve
branches, agencies, ATMs and Point of Sale terminals across the this objective, the IDC is promoting economic diversification
country to improve financial inclusion. As a result, the percent- and higher levels of non-traditional exports by investing in
age of adult Zambians with access to financial services has strategic non-mining sectors. In addition, dividends earned by
increased to 59 percent in 2015 from 36 percent in 2009. the IDC will be channelled to the Sovereign Wealth Fund to spur
further investment for the benefit of future generations.
The performance of the financial sector during the first nine
months of 2015 was satisfactory. Total assets and earnings The Ministry of Commerce, Trade and Industry regards the
increased, the capital adequacy position was strong, while the 2016/17 Zambia Yellow Pages as a positive contribution by the
overall liquidity position remained fair. Going forward, develop- private sector towards promoting Zambia's business and
ments in the banking sector are expected to remain agreeable, investment potential. This directory is an important tool for
and the Basel II Framework aimed at strengthening the safety linking businesses locally and internationally, and I therefore
and soundness of the international financial system should be encourage the business community to make productive use of
fully implemented by the Bank of Zambia in early 2016. the 2016/17 Zambia Yellow Pages.

Margaret D. Mwanakatwe, MP
MINISTER OF COMMERCE, TRADE AND INDUSTRY