(LUSAKATIMES) Bank of Zambia Governor Launches Diaspora Business Group

Bank of Zambia Governor Launches Diaspora Business Group
Monday, November 1, 2010, 14:56

Bank of Zambia Governor, Dr Caleb Fundanga on Saturday launched Zambia Diaspora Business Group on Zambia Blog Talk Radio an internet Radio run by Zambians in Canada and United States. Speaking in a speech read on his behalf, Dr Fundanga welcomed the need for such initiatives by Zambians living abroad.

Mr.Fundanga said the launch of the Diaspora Business Group is a welcome development as it will allow Zambians living abroad to pool resources which could be channeled into investments that will be of great benefit to the country. He noted that Zambia is a country with vast economic potential in agriculture, mining, tourism, construction, manufacturing, energy. However, not many Zambians make meaningful investments in these sectors. Mr Fundanga said there is need for indigenous Zambians to pool resources and invest in all these areas while creating employment in order to eradicate poverty.

” Although FDI is important, it needs to be complimented by investments by the locals. This is how other advanced countries managed to develop their economies. Remember investments by local entrepreneurs entail that the majority of the profits earned are spent or re-invested in the local economy. Successful local businesses would also motivate other Zambians to work hard and improve their situations,” Mr Fundanga said.

“There is need for us Zambians to find innovative ways and means of accessing long term finance for us to participate in major projects in mining, energy and other sectors. One way is through the establishment of a Diaspora fund. Once the fund is sufficient and flows predictable, it is then possible to use such a fund as collateral to access long term facilities from multilateral financial institutions like the African Development Bank and the African Export Import Bank.

As Bank of Zambia, we support the launch of the Zambia Diaspora Business Group as we believe that resources from the Diaspora are catalytic to the country’s economic development. Diaspora funds are also counter cyclical and can easily be tapped into for the employment creation and poverty reduction. I wish you well and hope that you succeed in this well meaning initiative,”Mr.Fundanga said

Speaking at the same function, the President of the Group Dr Chibwe Malama of Pennsylvania, United States said “Today, Saturday October 30, 2010, marks an important step, launching Zambia Diaspora Business Group, Inc. An Investment Club for Zambians in the Diaspora whose sole goal is to energize investments in our beloved nation, Zambia. I am personally very pleased to see the warm welcome this initiative has received so far and we have truly been honored to have the Bank of Zambia Governor, Dr. Caleb Fundanga officiate its launch.”