10 December 2008
GOVERNMENT has said that Zambia still remains attractive as an investment destination with a sound and adequately capitalised banking system despite the global financial and economic crisis.
Finance Minister, Situmbeko Musokotwane said the presence of the Bank of China, which is one of the largest banking groups in the world with assets of over US$850 billion, stands as a testimony to the attractiveness and competitiveness of the Zambian economy.
Dr Musokotwane said during the opening of the Bank of China (Zambia) Limited new premises in Lusaka that the main priority for the Government now was to increase the level of foreign direct investment in Zambia and to diversify the economic base.
He said increased foreign investment in Zambia was expected to be one of the main drivers of the diversification, which was key to the country's continued economic growth.
He said economic diversification was the only sure way of insulating the economy against adverse economic shocks, such as the current sharp decline in world copper prices.
He, however, said Zambia faced a number of challenges on the road ahead, particularly as it sought to diversify its economy in order to safeguard economic gains achieved over the last few years.
The continued expansion and development of the Zambian banking system was an important step and that the Bank of China (Zambia) Limited was expected to play an important role.
He said the Ministry of Finance looked forward to working closely with the bank to achieve the objective and to attain the Government's broader vision of improving the lives of all Zambians.
He said the wider relationship between China and Zambia has been one of the key contributors to Zambia's economic progress over the last decade, spanning various sectors of the Zambian economy.
He said the contributions had not only come in form of foreign direct investment but technical assistance and knowledge sharing.
He said the bank had over the years made significant progress in Zambia and was serving as an important ambassador for Chinese investment, helping to attract significant levels of foreign investment into Zambia.
Speaking at the same function, Chinese Ambassador to Zambia, Li Qiangmin said 11 years had passed since the bank started operating in the country and he was happy that the bank had not only stood the test of time but made progress.
He said the Bank of China was the first Chinese financial institution to start operating in Zambia as well as in Africa and that reflected the long-lasting friendship between Zambia and China.
He said the bank had over the years attracted Chinese investors by providing services to them.
Bank of Zambia deputy governor-operations, Denny Kalyalya called on the bank to continue playing an active and effective role in stimulating economic activity through the provision of well-structured financial products and services.
Dr Kalyalya said this would in turn boost growth in key sectors of the economy as well as enhance access to finance and encourage more indigenous Zambians to establish relations with the bank.
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