Zambia’s external debt has swelled to over USD 2 billion following Zambia’s hugely successful Eurobond issue.
Ministry of Finance Acting Director for Investments and Debt Management Fortune Kamusaki told Journalists in Lusaka that the USD 750 million bond forms part of the already existing USD 1.5 billion external debt.
Dr. Kamusaki explained that the external debt is mainly made up of concessional and non-concessional loans.
He however assured that Zambia’s foreign debt stock remains highly sustainable obtained a huge debt relief under HIPC.
Dr. Kamusaki noted that the Zambian government has been prudent in its borrowing and there is no risk that the country could slip back into a debt trap.
Dr. Kamusaki said the foreign debt stock has been building up steadily from the time the country got debt relief under HIPC .
LT the last sentence is not complete. This is good debt the debt that makes the country rich.
TAKE CARE THAT IS THE RED LIGHT.BUT IF YOU MOVE WITH CARE BY PRUDENTLY INVESTING THESE MONIES IN BANKABLE PROJECTS THEN YOUR GREAT GRANDCHILDREN WON””T CURSE YOU.
Only $2b? Yeah,right. We just don’t want to acknowledge we have mortgaged our future and that of our kids to the max till debt do us part.
Next budget, just introduce windfall tax on mines. if not increase shareholding to 50% so we share profits on copper, the waisting asset. This is more sustainable than telling us this credit is sustainable.
Nice to see that the bond was oversubscribed, despite the various rantings and events of the past few months, and at a coupon rate of less than 6% too. Well done to the Zambian team.
Kaloba is always oversubscribed!!!
These debt is the trap just been set by the Imperialists Countries like Britain, USA, and Germany.the PF Govt ought to be care in indulging in such debt trap.Remember what we went through during Mwanawasa time SAP,HIPIC, and lobbying for the cancellation of Debt.How has Greece faild to redeem themselves in there economic crisis?In as much as we are the largest exporter of Copper we need to be cautious of these.Imperialist want us to be there slaves of sustaining their economies.There are into this crisis coz most African countries had drastically reduced borrowing these stupid Loans which are aimed at enslaving generations to come to serve their children.
There must be some implication on rating of Zambia as a middle income nation. We must not rejoice in securing debt. We ought to re – focus and look within to create internal wealthy which we can expend on national development. But for as long as we give up our god given natural resources to foreign conglomorates for a pittance, creating own wealthy will remain a pipe dream! And we shall continue to go back for loans and lumber our children and grand children with servicing of debt for many decades to come. There is no firm insulation against slipping into a debt trap!
If you chaps start filling up your homes with Blue Label Whiskey and Cuban Cigars, you will fail to meet you obligations when time to pay up the bonds. Not ati tendalama shabanoko, ninshi palibe baba!
Why the Kama Jeans outfit ba Banker?
On the debt this will sour to unmanageable heights of the Late 90s.
The 2 billion will grow prior to the next elections as GRZ will be scuttling for capital projects to hoodwink voters with short memory span.
Wondering the same thing about the ka jeans /casual outfit really. He looks out of place.
I fail to understand why someone in their right frame of mind can rejoice for securing DEBT. Don’t you know that the borrower is a slave to the lender?
IF U CAN BORROW THEN YOU ARE CREDITWORTHY.IF U CANT BORROW THEN YOU ARE NOT WORTHY BEING LENT.
AS ZAMBIANS WE SEE THIS AS A POSITIVE DEVELOPMENT AND LO WE ARE GOING TO INVEST THIS MONEY IN INFRASTRUCTURE DEVELOPMENT AND CREATE MORE JOBS FOR OURSELVES.
IF LENDERS CANT LEND U THEN THEY ARE SCARED OF HOW RISKY DEAD RISKY YOU ARE.
tell them. Ignorant fools who just rant and rerve without a clue to economics.
Blacks are always on our backside begging for money.We lend you money and you are all excited about it.Dont you know that a borrower is a slave to the lender?
The other day i read about your finance minister talking about how the money will be used.He talked about a whole lot of things.The money wont even be enough.Typical of blacks!The moment they see money they immediately start thinking of all sorts of things they can spend it on.Trust me their was no plans made for the money.Plans are been made now.Eg when did they plan Rsz which was grabed a few day ago would have a share in the money?I thank God i have found a different black in Mushota.
just thieves creating debt for our children
If one thinks about it, we are dying twice on this debt thing. Why borrow in the first place? They are quick to borrow yet they have no project plans whatsoever. Can some one explain what they want to do with this money in full detail? They reposses RSZ in one day and say the following day that part of the money will go towards the same? What if this huge debt was not successful, how would they run the company? What are the capital investment requirements of whatever projects they want to embark on, what will be the net benefits as appraised if at there was any appraisal? How will they change the running of those projects from the UNIP ways which failed? It appears they are borrowing first and attempt to plan afterwards. CNP ni CNP full stop. That Chikwanda seems economically uneducated.
@ Nick the topic is about the Eurobond. Please don’t brand us all blacks under the same brush. You met a different black, good for you, but you can complain and criticise. If you want to create change, you have to be home. FYI if you are in the UK have a look at your balance of payments, it’s in deficit and not credit.
The MMD really worked miracles. A decade of economic growth averaging 6%. Adding half a million to the formal sector. $2.8 billion in Forex reserves. A manageable debt burden of $1.5 billion. A credit rating of B+. Laying the ground for a bound issue. Well done Levy and RB plus your able Finance Ministers in Magande and Musokotwane. This just tells us results can be achieved even when the President is not related to the Finance Minister and/or when they are not of the same ethnicity. You were TRUE nationalists who believed in one Zambia one Nation.
It will not help you haters and frustrated people. You said PF had failed to secure the Euro Bond but to the contrary the greater Bond has been secured. See how foolish you are blogging coz you have nothing to say. To us Zambians its all celebrations coz we know that the money when put to good use all Zambians will benefit. Just continue insulting while us with the government of the day will be working hard to develop Zambia.
Thank you Kamusaki for bringing us back to earth. The bottom line is it is debt and at the end of the day Shylock has to have his pound of flesh. Like I’ve said elsewhere Since when did people celebrate debt? Africans have always celebrated profit That’s why we have n’cwala and such ceremonies. Its the yield that needs to be celebrated.
Fool! Because it shows investor confidence. Otherwise with chinese death, zamtel, RSZ and finance bank, investors would be scampering away as UPND have been preaching….
Fools ALWAYS rush to call others fools
Clueless whatever.
You are disrespecting Zambia.PF people have you decided the future of the unborn Zambians and the present generations of between 0 yr and 18 years? You know that you are now entering the end of your life spans. What makes you think that this time around you will do better than before. Most of these PF people are ruminants of the failed regime (UNIP) and they understand their real personal motives for subjecting the poor future generations to senseless borrowing spree. The PF has lost touch with reality and they are willing to sacrifice their own people to modern slavery. Shame on innocent poor Zambians, God help your children. Viva HH. Please, castigate this PF regime for not expanding Zambia’s foreign reserves. Viva, UNPD
Its ok even America borrows, as of today America has $14.9 trilion in debts from China and other Euro countries.However we zambians deserve to know the terms of reference or conditions of borrowing this money eg interest rates per year and terms of payments. Also like some one has already said government should introduce windfall tax on mines and abolish royalty taxes on mines and zambia will be ok.
In an alternate universe MMD won the election and pushed through the same deal. It was met with euphoria by their supporters who championed it as a new day for Zambia. Opposition leaders showed mixed reactions with new PF/UPND coalition coming to physical blows over the contents of their press release response. The coalition is rumoured to be under threat as the two co- leaders want the other to relinquish his post. The official boxing match is set for independence day where HH the Great and PF co-leader, Nevers Loyal to No Party Mumba will duke it out.
@19. Abolish “Royalty Taxes” and Zambia will be okay?
Good afternoon
It is not out of place to make cautionary statements about our borrowing status when so many funds are poured into the country. It shows me that so many people are concerned about the future of our country, which is good.
However, we must also understand that a borrower’s status can be a blessing or a curse depending on how he uses what he borrows. If the present government demonstrates strong political will to implement it’s development plan, then I don’t think we have anything to fear.
If the money is used to back local industries (so that imports are substituted by exports), if jobs are created and sustained, roads, railways, power and telecommunication is improved, the living standard will be transformed and everyone shall benefit. Including the critics.
We have been on this road before and it lead us to a place we all agree was not good. It is inconceivable that anyone can logically believe this will do us any good. This is a problem for the leadership and people of Zambia post 2022 when the creditors call in their debt. As for me, I will seek God and by His grace, as our government proceeds on this proven path to failure and slavery, I will go the exact opposite direction and be debt free and in 10 years by God’s grace I will be a lender to the nations.
Wall Street is Shylock
Really, whats there to rejoice, guys are behaving as they have hit a lottery. All this will be looted and plundered within 4 years , back to square one, Do we really have a responsible goverment??
Go do some EC110
This is a government of regionalists, nepotists, fraudsters and conmen! Mark my words! Nothing will come out of this $750m ! Unfortunately it is the nation that will have to pick the tab for this self aggrandizement of this particularistic cabal masquerading as saviours for the poor and protectors of interests of all Zambians(sic)!
A debt is a yoke to a country and no sensible person should rejoice about it except pf fools who feel they have won trust out of it and who cant think and plan beyond their nose.
Rather than celebrate securing debt, why doesn’t the government look at attracting multinationals to come and invest in the country? The government can still retain 51% stake in most of the companies and this is way jobs and internal wealth are going to be created, given the circumstances. Borrowing money all the time when we are not seeing results is a bad sign. It’s not good for our country.
Kansi ni nkongole these are problems not solutions
Zambia was ablely represented by Hon. Miles Sampa and team. Shame on Hakainde, he cant even comment on progressive matters. This is his beginning of the end for him. On RSZ he didn’t comment, what a selfish man?
People must read the history of new York and wall street to understand what’s going on here. It’s beyond just issuing a bond. Nchekeleko!! Money spins the world
All that hard work Magande did to get us out of debt we now have to rejoice. How do you even borrow money without having a plan. Has the government mentioned or shown us what and where this money is gong to be used for, seems to me it is going to go in someones pocket. This money comes with interest. No one will give anyone money without getting a big chunk of the pie.
am i missing something here? i thought this debt is to cover this years deficit? what about next year. will our budget balance? wouldnt it have been better to cut expenditure and look for fdi? am told we will be paying for this for the next ten yrs. i suppose i missed the party.
#10, HAVE YOU NEVER BORROWED MONEY FROM THE BANK? OR HAVE YOU NEVER APPLIED FOR A MORTGAGE FORM THE BANK OR BUILDING SOCIETY? IF YOU HAVE DID YOU NOT REJOICE TO HEAR THAT YOUR LOAN OR MORTGAGE APPLICATION WENT THROUGH? #10 SUCH MONEY IS BORROWED WITH BUSINESS PLANS. EG THE PF GOVT IS IN AA HURRY TO DEVELOP INFRASTRUCTURE TO ENABLE FOREIGN AND LOCAL INVESTMENT WHICH WILL INDIRECTLY CREATE JOBS FOR THE CITIZENS. IF THE GOVT DID NOT SUCCEED IN GETTING THAT$750million, IT’S BUDGET FROM LOCAL REVENUE WOULD HAVE BEEN VERY TIGHT TO BE ABLE TO ACCOMPLISH IT’S PLANS. THAT WHY NOT THOSE WHO ARE IN NEW YORK BUT EVERY ZAMBIAN WHO KNOWS WHAT THIS MEANS. ONLY A FEW INCLUDING HH WISHED THIS TO FAIL.
thank you for clear explanation. eXPLAIN TO THESE IGNORANT ZWD READERS.
#36. May be u do but I never celebrate a Loan. I live in a country where banks and other loan sharks are so busy hunting for people to lend money to we run away from them. Its what you do with the loan that matters. If it yields you some dividend then only then should you celebrate.
Bill Clinton left $5.6 trillon surplus, elo abakamba ba Bush balilya shonse. Now debt in the US is over $ 8 trillion. Some one tell me how debt is good again. Didn’t even Jesus our Lord say clear all your debts?
HH is a coward too! Don’t even think he will recue us. Find out his history at grant Thornton and the sales of zccm. Nibasakala bonse
Never head of a government celebrating after securing a debt! This can only happen if a government id run by retards. What is worse is that that much of that money will just be stolen, and the country will be sinking in debt and under-development.
PF never denied the fact that the economy was performing well during the last three years or so of MMD’s rule and that Zambia had become a lower middle income country. The argument was that despite the booming economy poverty levels still remained high. The argument advanced by PF was that poverty levels remained high because of corruption. The question we should ask the PF is what steps has it taken to redress the high poverty levels? Is this borrowing one of the ways it is redressing the poverty levels.
#36. May be you do but I never celebrate a Loan. I live in a country where banks and other loan sharks are so busy hunting for people to lend money to we run away from them. Its what you do with the loan that matters. If it yields you some dividend then only then should you celebrate.
CONGRATULATIONS! We now owe 2billion Dolllars!
I suggest we divide it equally among all the nine provinces to avoid greed. God help this country do the right things for once. Zambians watch how this money shall be divided between provinces. Watch and guide the leadership.
The Headline is funny. People should learn that the money borrowed is not for paying salaries or pensions but money for capital ventures. So I would only worry myself if the money was going to emoluments! So really LT, I would not scream with such a headline. You are a professional online publication which should not send wrong shock waves.
The govt should put some of this money in developing a “Conference Village” for US$100m in Livingstone to support the forthcoming World event to be held together with Zims and also to accelerate the sustainable growth of the tourism sector in Zambia’s main tourist capital city. The trickle down effect will be not just for the moment but the long-term as we shall continue to attract the business tourist and more international conferences in the process. PF this is Free Advise, so either take it or leave it. the onus is on you.
It’s easy to borrow but if the monies are not invested widely then there is a problem.
Thieft in broad day light….8-|
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