In Zambia, the effects of the global financial crisis have been generally felt in our mining industry, securities market, and the external sector of the economy. The drop in copper prices has led some mines closing while other have been placed on care and maintenance with massive job losses while the mining subsectors and mining related industries have also seen loss of jobs. The tourism industry is adversely affected with low occupancy rates while the horticulture industry has also recorded losses due to low export volumes as result of low demand and low commodity prices of vegetables and fresh flowers in European markets. The exchange rate has also come under severe pressure as foreign exchange inflows declined reflecting the deterioration in the balance of payments position. This is partly a consequence of reduced earnings from copper exports arising from the fall in copper prices. Further, the weakness of the local currency is a consequence of increased risk aversion to emerging and developing economy financial assets. Chairperson, the challenges arising from the global financial and economic crisis are huge but surmountable. Major economies of the world are putting in place various stimulus packages, which are expected to take the world economy out of the crisis. Without doubt, these measures will benefit emerging and developing economies as well, provided that were main committed to pursuing strong socio-economic policies. I urge all of us here present to be part of the solution and contribute to the economic recovery and prosperity of this continent.
It is also important that we incorporate policy issues arising from this seminar in our domestic policy processes and thereby enrich such processes by taking into consideration regional perspectives. 2  BIS Review 44/2009  The challenge going forward is how to maintain and sustain the economic gains and macroeconomic stability in our countries. There is need to encourage diversification and enhance competitiveness by increasing expenditure on infrastructure and social services. We need to continue to encourage investment in our economies that will lead to a diversified export base and a greater local value addition. For monetary authorities, there is need to continue to closely monitor global developments and always stand ready to take appropriate measures in the local financial markets to ensure that confidence in the financial systems is maintained and any systemic risk is avoided. Such actions will facilitate maintenance of the macroeconomic gains achieved thus far. This is a necessary ingredient for economic growth and poverty alleviation, even against the unfolding adverse effects of the global financial crisis. Ladies and Gentlemen, let me end by urging all of us present here today to deliberate on issues that will help us face the future in a much more confident way. Let us use this unique opportunity to have a discourse on how to protect and sustain the recent achievements of higher income levels and reduced poverty. African countries need to find ways and means of coming up with a response framework to reverse the effects of the crisis.