MATERO member of Parliament Miles Sampa says the Lusaka City Council needs a municipal bond of about US$500 million for it to operate effectively and meet its obligations.
Mr Sampa, who is Deputy Minister of Finance, said in an interview yesterday that the council has no reliable source of revenue hence the need to get a municipal bond for it to operate to people’s expectations.
Mr Sampa said the municipal bond would not be a Government project but strictly that of the local authority.
He said the local authority would then use the money to construct high rise buildings in all the constituencies of Lusaka.
Mr Sampa, who has since made the proposal to the council which is discussing the matter, said the move would ease accommodation problems and at the same time widen the council’s revenue base.
“We want to build at least 10 high rise flats like Findeco House which will benefit 200 to 300 residents of Lusaka,” he said.
Mr Sampa said the ambitious programme would also see the council buying off townships like Kanyama, Chibolya and Kalingalinga to create land for construction of high rise flats.
He said the current government’s way of doing things is not to increase rates or taxes but coming up with good plans such as the idea of the municipal bond.
Mr Sampa however said the issue of the municipal bond has been on the table for a long time but successive councils have failed to implement it.
“The PF believes in action and we will soon see the results,” Mr Sampa said.
[Zambia Daily Mail]
We need to borrow to prosper…bond repayments, project delays and failures to meet deadlines coupled with miscalculations as to how much we need to really build these blocks…logistics problems in ‘buying’ out Kanyama, Chawama and their friends…am sure we can think deeper then this…however, good to see that people are working…!
Gents we just got 750 and in just a weeks time we are talking of another 500?? And why has he just concentrated on LCC is it the only council in the country?? these chaps just focus on Lusaka
Ba Engineer, Sampa’s suggestion of bond issue to finance the project and focus on Lusaka is on the basis of him being one of the Lusaka Council municipality MP, where he is a councillor as well. Other MPs country wide should come up with their own initiative for there areas for the benefit of their people, mwanvera ba bwana? More over it is categoricaly stated that it the Lusaka Council baby and nothing to do with the central government
He is the member of parliament for Matero and therefore a member of LCC
Hello Engineer, this is a Lusaka City Council arrangement. Ba Ndola, KItwe, Livingstone etc can do the same if need be.
What sort of an engineer are you? Keyword here is MUNICIPAL!!!
Sampa naiwe mukongo wako….usabaila maningi it seems u like nkongole too much
This reckless borrowing will ruin this country, it scares me! The proliferation of unplanned or informal settlements are just a symptom of a sick economy. Even if you built these skyscrapersa, how would the tenants without jobs meet their rent obligations as they fall due? It will lead to default on the bond leading us into a debt spiral Levy got us out of. The stupidity in Sampa’s head never ceases to amaze me!
they are already paying 2mils a month for small shacks in shantys
Give the municipalities their jurisdictional oversight back! Let power and water utilities retain their place as bulk suppliers of service and let the municipalities retail them as is the case in most organized (dare I say “civilized”) societies. That way we will not need to get onto the path of austerity (because eventually that is what we are embarking on)… Lets plan beyond our mandates, then we will surely be remembered for the good we are igniting.
There we go again, tend to agree with HH when he says there was not need to borrow this money at the moment. How does govt borrow money at a huge cost when they have no clear plan on how to use the it. Even on an individual or business level, you don’t get a loan and then later start planing how you going to use the money, thought it is supposed to be the other way round. This money will end up being misused and we will remain servicing a huge date. Its like walking in a shop with say K2M in your pocket then start drawing a budget from there, there is a high chance of buying unnecessary thing while omitting the very important items.
There is nothing wrong to borrow and invest in Infrastructure.
Developed countries are developed on Bonds ne nkongole. All those driving good cars ninkongole. My car yankongole. Why the fear?
Certainly there is no problem with nkongole, but you should not borrow for the sake of borrowing. Like for you am sure even when you were borrowing its was for the purpose of getting a car. And correct me if am wrong, I do not know of any country in the world which has prospered based on nkongole, development will only come from using our natural and human resources we have so many example like china, Valenzuela, Bolivia, the then Libya and so on. what we need as a country is in one way or another get take charge of our natural resources and begin getting the full benefits. our country is rich and there is no reason too continue begging .
this is backward thinking my friend.If u drive a car becoz you borrowed not evryone borowed to buy their cars.change ur ways mune
How much do you get buying a car pa nkongole?? i see very cheap cars pa net which you can buy without inkongole
sha fulisha ngkongole naimwe ba kilometer
Borrowing is not wrong if used for investments like what Sampa is proposing the loan will pay it’s self why fear? If H.H fears to borrow for investments I don’t know what kind of an economic adviser he is. We are not borrowing for consumption. Good move Miles go for it. Those complaining about Miles only talking about developing Lusaka, tell you MPs in your area to make such proposals in their councils. Construction of of high raise flats will create jobs for youths
Use the part of yo brain called frontal lobe, how do you borrow to build houses and yo manufacturing, agri and mining industries are critically un-stable. All you will get are ghost buildings years after with not reliable financially sound tenants to occupy the buildings and hence no finance to maintain such costly high rise buildings. Invest righly, then this country will move rightly
first and formost how do we pay back is it thru our tax payer or we wait until it so big and ask debt can cancellation again
My Name is MMD Chief Bootlicker and I endorse this proposal.
However, we need to built systems on the ground first and be clear about business ventures that will generate revenue for use to pay back the bond. I wouldn’t;t mind to see the back of some of these Shanty compounds in Chibolya or kanyama replaced by decent accommodation with decent rent rates that residencies can afford. This is how Councils used to be profitable under UNIP and families lived in decent houses than what we see now.
Again I endorse the idea
I agree, though my immediate thoughts are that highrise flats are an eyesore unless properly serviced. Bear in mind that the areas proposed for construction are flood-prone, sit on limestone, and will require sound engineering to make the tall buildings stable. But sounds like a sensible alternative and proposal from a man who thinks outside the box.
#12 MMD Chief Bootlicker i also agree with you. The project is good but as long as they don’t borrow. The council has the ability to generate funds. If they do they can get something from the government BUT not borrowed from any other organisation. The minimum possible amount and they can build on that as Capital to generate more.
Forget his ministrial job, he is now talking as Matero MP which is under Lusaka Province. Great idea young man, but first sort out the system to ensure not even a cent of that money is stolen or misused. Flats can be rented out or sold off. That money can be used to service the bond repayments. Ofcourse, some people will not understand this, just forgive and ignore them.
Miles – Councils should concentrate on dealing with Corporates and not individuals, ie Council should build Shopping Malls like Levy Junction and have Corporate entities rent the space and you get the money easily.
When you build houses,your relatives will occupy them and we all know how difficult it is to get rentals from individuals especially through council.
But does LCC have enough capacity to pay back the loan? I wanted to get a loan to build a complex in lusaka and realised that it would be very expensive to do that. Hasn’t sampa just got insatiable appetite for loans after making some million dollars from the eurobond as commision for himself? Mind you he went to finally negotiate and there is nothing for nothing. Getting loans is very easy. I can even suggest that we get $10trillion dollars to build good flats accross zambia. But can we pay back or we will just enslave the poor future generations? Communism is gone and does not work. We sold houses that belonged to councils and can we get loans to build more again when we dont even have money for medicines? This get rich quick government for individuals will land us into serious trouble.
what happened to MERZAF? why doesn’t anyone talk about it anymore?
that is a hidden case, only Mr Sata & Hon Kabimba have further details, u know how things moves is in Zambia………
LCC get all land, house, business owner pay rates timely. There is a lot of money from un collected property rates! So many constructed properties from which you have never earned money yet as a council. Just rates and rent that you have failed to collect is great capital indeed! If the council fails to trace property, engage or subcontract small people. form a company that employs the unemployed people, who can help trace all properties and compel owner to pay to the council what is owed to it this far. Why pay a blind eye or deaf ear to this straight forward issue? Just trace all owners of properties, big and small and you will see how much money woild be realized.
Good idea which can be developed further and yield tangible results.To make the whole thing perform effectively,the council can raise $250 million and the othe half should be by the council partnering with some private investors.I have also had the idea that.those compounds can be bought off,graze down the structures and peg the land say at a minimum of $10,000.That way a lot of jobs even at a lower level will be created.Imagine selling 10,000 plots at an average of $30,000,we are talking about $300million on average and raised within Zambia from the sale of plots.In the plans include all the districts in Zambia.
Interesting idea. Housing is a serious problem in Zambia and such ideas shd be supported fully
this may sound sensible but it will take years for the council do it. anyway miles this one walasa i have also invested in property and i know how it pays. use the eurobond instead of borrowing more money.
#11 ba MMD Chief Bootlicker,now you talking. Kiliometre Sampa seems to be moving in the right direction,I like his approach. Bayama wakwe ba Sata balimulanga inchito.
It is a good move though $500 million is excessive for the kind of project you are talking about. Does it explain the huge arrangement fees which you anticipate to be in excess of $250 million?
Please do build high rise flats because people wont be getting to their home because of ZESCO power blackouts. The lifts wont be working most times and the old folks including the young ones will have great difficulties. We are still far from catching up with Hong Kong and China and UK were power blackouts are not known.
I like the idea although i have my own doubts about the chances of its succes.Having projects like the flats in Kabwata is a step in the right direction bacaues the presure on space will be minimal.Makes very good food for thought.
I am a UPND sympathiser and I also endorse the motion, however, we need to see transparence in it’s implementation and wide consultation amongst key players including key opposition leaders(not just the sebana wikute types like Nawakwi and Chipimo)
hahaha this country is very funny…
If LCC could collect all its rates and taxes, you would not need loans.
Approximately 500,000 proper houses in Lusaka. Say each house pays US$40. Thats US$20m per month and US$240m per year.
There is no need to build highrises. These sort of projects should be avoided. In the 1960s and 70s Europe and America built these sort of structures which just became urban jungles. They are now been blown up and replaced with housing that has a community feel. These sort of buildings are expensive to maintain. They consume a lot of energy in terms of lifts and pumping water upwards. Just build houses or 4 storey flats. It is a good idea to raise money through municipal bonds; unfortunately it is difficult to see how councils in Zambia raise revenue. Lets go back to the system that the British left us before Kaunda ruined it with his foolish experiments. At the moment councils like Lusaka have no relationship with the residents. They are mere political tools .
Good thinking for a change Mr Miles Kaloba Sampa.
I can see Sampa becoming the Minister of finance after Chikwanda.I can also see him as threat to Ha Ha in 2021 Presidential elections.In a nutshell,with good strategy,I can see Sampa ruling Zambia in the near future.Sample,be careful,GBM is probably seeing what i am seeing.
You absolutely have no plans for the money. I think that money will eventually be wasted.
This is trash. In his own constituency, people have problems with the road network and one ward is the least developed in Matero Constituency with no tarred roads and clean water. How can the council start building highrise flats in such areas. People have even closed half their doorways to prevent water from entering their homes and then an MP talks about towers. Miles come down to earth and do roads in your constituency. Look at the lives of the people of that least developed ward.
This is ignorance to the core, and anyone riding and supporting Sampa are deluded and dull
High rise building, I think he meant tall. The reason why there are tall buildings in UK Japan, Scotland is because of the scare of land and highly densited population
There is plenty of land in Zambia, and besides 90% of Zambian people think that a house is better than a flat. Mr Sampa you are dealing with unwashed masses please and you are acting like an unwashed person belonging to these masses
But then again, I probably think a little too much considering I have MBA, CIMA ACCA Msc and Phd soon
Thanks
What do you mean by ‘highly densited population’ ?? definitely not English, i can only assume you meant high population density
useless contribution. nosense chap. full of bragging of qualifications which you think you are the only zambian with those qualifications. we have more than those oh! let me not go that way i may sound childish like you
Never mind you, always seeking attention like a like a child who takes off her pants and pees in front of visitors so that the parents can turn their focus on him/ her. Okay Mushota we have seen you enough of that and we have noted your contribution!!!
Iwe Kilometre Rioting, borrowing for luxury is not what we need, if you have to borrow channel that money into economic boosting sectors that will within themselves help service the bond replayment-think about investing in agri or manufacturing based SME’s
Why high rise building? Do we have enough emergency and other needs to support these ambitions?
Ka mushota what in the world is densited ?? you got that from your PhD lecture ?? By the way its not Phd but PhD
I would want to live in a high rise building because of poor services. Gentelemen; to service a high rise building you need “presurised” services. Have you ever seen how people “pama flats” suffer due to poor services? Garden flats would be better.
so we need to buy off Kanyama, cHibolya and Kalingalinga just to build ten high rise flats?
So you googled this idea again? Why this sudden appetite for bonds? Even if u call it council bond and not govt fact remains it is Zambian debt to be paid back by our children. Where are u going to be enjoying your hard earned commission on these bonds?
unprecedentend borrowing for unprecedended development. have a proper strategic plan in place.five year plan or something. Ba Sampa instead of just checking for ideas from article on ZWD and pass them as PF projects, have a proper plan in place. one thing i hate about Zambia is we are quick to make things but forget about a maintaince plan. most of the stuctures that are run down in Zambia the reason is simply because they lack a maintance plan. Do we ever think beyond building.?
good idea but its long term sir..may not happen in your time..
We need to get started somewhere now, don’t we?
MMD Chief Bootlicker I think now you have started licking some smelly poisonous staff . You used to be very objective in your debates but now nikisi mudala you are lost. High rise buildings are not a solution to the housing problem in Lusaka and Zambia in general. Understand first why Lusaka and other urban areas have become over populated. One reason is rural collapse which the government must mend and retain people in these areas yet living a good standard life. Instead of Skyscrapers some low cost houses can be built which are easy to maintain. Just imagine when the lifts malfunction in these high rise flats you are supporting, what will happen. Will you and Miles carry the occupants up and down. I think Miles got excited with his visit to the states
1. No need to buy Kanyama & John laing. The evicted people will be homeless & in the end the total number houses before & after the projects will be the same. There’s plenty vacant land around Lusaka.
2. Why concentrate on Lusaka when the bond will be repaid by copperbelt & N/western? 3. Why push the country in a debt trap when the money can be raised locally? Which one is harder; to bring the emerald mines to account for all export taxes or to fly to europe to beg for Bonds? I was watching a programme on DSTV Discovery Channel (80 Days Around The World) when 2 Americans visited Kagem Emerald mine & they were displayed with a big table full of emeralds each costing up to $25,000!!!:o
yeah totally agree with you. our country is rich with so many natural resources but we are just failing to manage them. No country or nation has ever prospered from this borrowed money.
The bond pays for itself from the rent collected from the tenants; this has nothing to do with Copperbelt or NW or tax. This is how projects the world over are financed and serviced.
What wrong with borrowing money to build housing? You can never go wrong with housing in Lusaka, it is profitable and very cheap to build. I am talking from experience, I am actually going all in with all my servings to build more and more.
Wa to go Sampa
Brilliant idea killing two birds with one stone i) a revenue stream for the council ii) funds to service the debt. High-rise flats have high running costs though ie. Lift servicing, water pump repair and high fixture and fitting repair costs…
FYI raising funds via the stock market is one of best options and successful corporations do use this route as the banks are too expensive and offer high interest rates. Countries like Brazil and Argentina are where they are today due to innovatively sourcing funds from the market…Brazil is one country that has issued the highest number of bonds; they have mainly used funds for profitable infrastructure development projects.
Mr.Jay,Those countries developed under a leadership that cared for it’s people.They had a plan to use those bonds.Unfortunately for us in zambia we lack that visionary type of leadership.
So then what do you think the minister is proposing there? Isn’t that visionary enough for your standards…let’s have faith in ourselves and stop contradicting yourself.
And what their plan of paying them back?
This goes to show that the cash they borrowed was not planned for. Sad indeed. Since they have already borrowed it, the best investment is to build both large and small hydro-power stations. When we have cheap and sufficient power, then we can export it to all our neighboring countries and earn the US dollar or Euro. Constructing high-rise buildings will not help us pay back the loan and just a few selfish people like GBM will benefit. The money earned from power stations can then be used to finance infrastructure development. Please wake up miles sampa and drop that plan with immediate effect. Take advantage of the vast water resources that we have in our country; Luangua river, Kafue river on the Copperbelt, Chambeshi etc. Cheap power will stimulate industrial development.
@Mojito
The property market in Zambia is very profitable; these are very simple issues to understand tenants pay rent every month; which is partly pays off the debt. The likes of Donald Trump have been very wealthy in this way; building ahead of schedule and paying off debts quickly by selling or renting out before a brick is laided or the foundation has dried and the rest is his profit.
Alternatively you can develop the bio-diesel/bio-ethanol industry using our vast land resources. Like Brazil we can reduce dependence on fossil fuels imported from abroad and consequently save on the hard earned dollar. The saved $$ can then be used to service the loan. The bio-diesel/bio-ethanol can used used in fuel blending. This type of fuel is less destructive on the environment and also on the people you have allowed to trade on the Lusaka streets, who are exposed to byproducts of diesel and petrol day in and day out. Please Miles Sampa, think of more viable projects that will bring in more Forex!! I thought that’s why the family tree visited Brazil and learnt a few techniques of how to turn the economy around
Have we done any research on the need to build the 10 storey flats in Kanyama,Chifubu or,Kalingalinga.At the moment we are stuggling to get water pressure up to 4 storeys.Are they user friendly considering the constant power cuts for the Eleveators.We are failig to make proper road drainage and soon the rains will be pouring and see what will happen.Lets provide the basic services first before we dream of sky scappers in chiblya,my foot!
And so just how much money have you earned from National Housing Authority? It can be a good proxy indicate of how much you will earn from constructing highrise building. Hope there were lessons learned from projects like PHI; or the sell of government houses by Chiluba, Sata, Masebo, Guy Scot etc MMD government of those days. Please reflect deeply before you start spending this money. Don’t do a ka don’t Kubeba style on borrowed money…
The idea is good but Mr. Sampa should seriously reflect on many issues that could make the whole thing tenable. I agree with the person who mentioned of the reason why urban areas are over populated now. To decongest our cities we don’t need skyscrapers, Zambia has vast land. All we need is four or less story buildings that can match with our ability, and embark on prjects that would economically be viable in other areas than cities that will make people never to think of jst living in lusaka,Ndola ,kitwe, etc.
I think the Zambian populace need to be educated on the issue of Bonds. It is a good move.
The two basic types of municipal bonds are:
General obligation bonds: Principal and interest are secured by the full faith and credit of the issuer and usually supported by either the issuer’s unlimited or limited taxing power. In many cases, general obligation bonds are voter-approved.
Revenue bonds: Principal and interest are secured by revenues derived from tolls, charges or rents from the facility built with the proceeds of the bond issue. Public projects financed by revenue bonds include toll roads, bridges, airports, water and sewage treatment facilities, hospitals and subsidized housing. Many of these bonds are issued by special authorities created for that particular purpo
Any public or private firm can still issue bonds to raise the revenue base. The Municipal bonds are securities that are issued for the purpose of financing the infrastructure needs of the issuing municipality. These needs vary greatly but can include schools, streets and highways, bridges, hospitals, public housing, sewer and water systems, power utilities, and various public projects
Highrise buildings are an eyesore, Zambia has more than enough land to build bungalows! A lot of countries have brought them down due to insecurity (faulty lifts and dark staircases – a hideout for drug dealers etc.,) just look at an attempted project in kabwata estates…. a real mess !
Mukatendwa-USA
That’s the problem will have in Zambia at the moment there is a lack of financial knowledge regarding Bonds and how they work..they media is not doing us any favours as it has lamentably failed to articulate what they are to the public, you don’t need to be an economist to understand such issues.
FYI Fitch Ratings has published First Quantum Minerals Ltd’s (FQM) Long-term Issuer Default Rating (IDR) and senior unsecured ratings of ‘BB’. The Outlook on the Long-term IDR is Stable. Fitch has also assigned the group’s debut USD350m seven-year senior notes a ‘BB(EXP)’ expected rating. FQM is going to use this to fund development of the Sentinel and Enterprise mines in Zambia, as well as the Kansanshi smelter.
Nobody uses their own cash in this game.
Wake up people!
*it has lamentably failed to articulate that to the general public
Great progressive thinking. Let Zambians invest in Municipal bonds which are tax free. Not only will this uplift our citys infrastructure, zambians will have an investment opportunity that has been elusive for a long time. Those against the move need to sit down and evaluate their perspective.
Great idea but the money should not be borrowed.The council has the ability to raise these funds.
Monkey, does he even know high rise buildings need water pressure to be high for houses at the top to be supplied?
Why cant the ididott talk about improving water supply first?
Great idea but the economics of it are completely out of whack … why spend half a billion dollars to accommodate 200 families at the cost of $2.5 million per unit. What is the earning potential of those 200 families and how much will be recovered in rent for what pay back period?
While the idea is noble, it does not represent the most efficient use of capital in my world. I would rather we spend the same half a billion dollars on building new start-of-art three bedrooms pre-fab houses made of recycled material each costing $9,500.00.
With that we can have a total of 52,631 families accommodated whose household income can pay the capital costs of $9,5000 as opposed to 200 families can’t afford $2.5 million per unit. The smart people of the Zambian Enterprise deserve better plans.
Bembas are in office so as we know that we should never ever elect these morons into high office again Dam. Did he just pull that out of his A@@.
The developed world is moving away from constructing high-rise buildings for accommodation because they can become dens for thieves and drug dealers. Just ask the British and the Irish. Some residential areas with high rise buildings became no-go areas for the police and they had to be demolished because they became so dangerous. A case in point is Ballymun area in Dublin.
@ B R Mumba, Sr
Since land is the issue here, they could even go better by maximise the usage of prime land and build high density mixed-tenure housing dwelling units by incorporating low cost construction methods using prefabricated building components which not only improves the affordability of housing in high cost location but these building are normally six storey high (low-rise) and very quick to construct given that utilities and mains are already available in the area. Its just a matter of subcontracting the right construction partners with a prefab. background.
zambia is not lusaka
Ba Jay Jay:
I could not have said it better … you are the best.
Sampa, people have no water in Matero, no roads, no proper healthcare and you want them to have highrises? Too much chimpwena while you were in New York.
The Minister in one breath says LCC has no sources of revenue and he wants a $500m DOOLLAARR bond. I wonder whether he has got a sense of responsibility to want to burden LCC with this huge debt, or he thinks bonds do not need to be repaid.
The lack of understanding of infrastructure development and the need for such development is so apparent of this minister. The major driving factor to build skyways is usually the lack of land – of which we have acres and acres of under utilised land. Mister Minister wake up and talk relevant development to the Zambian people and not wasteful legacy projects.
Inkongole isn’t the answer to all your problems. Zambians are usEd to living on subsidies. If the council has no other source of revenue then its being ripped off by its citizens: Lusaka property prices are as high as Johannesburg’s which has a garbage collection system(Lusaka doesn’t) Yet Lusaka rates are much lower. Raise your rates so as to provide neccessary services. High rise buidings aren’t needed in Zambia. Like most brainwashed 3rd World citizens Sampa seems to see them as a mark of development but In poor countries such as Zambia, these buildings heavily carry the potential of being slums or ghettos.
LCC has failed to manage anything, Intercity bus terminus, kulima tower bus station has toilets left in 1945, they have not improved them despite them receiving millions on a daily basis, what makes us think they can properly manage high rise flats!!!!
Please just look t LCC offices to give you a picture of what they can do. With politics involved in housing issues, how will they pay back this money
Please maybe i leave in a different country, but can anyone including the mayor tell me just one thing that they have SUCCESSFULLY MANAGED, okay obviously am asking for too much, just tell me 1 thing that LCC has MANAGED WELL
agriculture is the only way to go and best keot secret in zed. ontop of that will come manufacturing. you dont need to borrow to make. everyone is borrowing from china but who are they borrowing from? i still believe foreign direct investment is better than bonds. remember the borrower is slave to the lender.
the ink hasnt dried on the$750m and you want to borrow some more? Whatd the plan on how we’ll payback that last loan. oh sorry we havent figured out how we are going to spend it first. persue FDI not bonds bwana
No need to borrow for high rise residential buildings. Lusaka only needs high rise buildings for offices. The idea of buying off kanyama and other compounds is what we had suggested sometime. Buy and build descent double story town houses. We lack maintenance in Zambia. Look at the Kabwata flats?