ZAMBIA has secured a concessional loan of US$ 1 billion from the government of China for investment in development projects in hydro power, housing, road infrastructure and other sectors.
Commerce, Trade and Industry Minister Felix Mutati said in an interview in Lusaka yesterday, in addition to the US$ 1 billion, the government of China agreed to give Zambia a grant of US$10 million for use of whatever purpose needed for the completion of the Ndola stadium.
Mr Mutati said Zambia was able to secure the US$1 billion because it was the first African country, with a high powered delegation to visit China after the Forum for Africa China Cooperation (FOCAC).
“We were the first among the African countries to make a presentation to China for various projects amounting to US$1 billion. The various projects are in power sector development for the two hydro power stations, housing, road infrastructure and other sectors. It’s because of the president going to China that we have been able to secure a loan of US$1 billion,” Mr Mutati said.
Zambia was able to secure the funds following the Cooperation FOCAC meeting in Egypt in November last year.
During the FOCAC meeting, China made pledges on its cooperation with Africa including a provision of US$10 billion in concessional financing for various projects in African countries.
Further, he said China pledged to set aside US$1 billion to support small and medium entrepreneurs (SMEs).
Mr Mutati said it was to the advantage of Zambia to be among the first countries to seek the funds saying as a result, the nation was able to access US$1 billion, which other countries might not be able to get.
The insinuations that President Rupiah Banda’s visit to China was a sheer waste of time and resources were unfortunate considering the benefits that Zambia was set to achieve.
“There was merit for Zambia to go to China as quickly as possible and agree on the framework of accessing the resources to ensure quick delivery of goods and services,” Mr Mutati said.
He said he was particularly happy that President Banda accepted to go to China and meet his counterpart Hu Jintao who directed his government that he would want the issue of Zambia accessing the funds to be addressed expeditiously.
As minister, he said, the presence of Mr Banda in China made his work and that of the other ministers easier as the two heads of State were able to hold talks at higher level.
In addition to the funds, Zambia was able to sign memoranda of Understanding (MoUs) with commercial institutions in China.
One MoU was signed between Zambia and China Non Ferrous Metals, which was currently developing the Chambishi Multi Facility Economic Zone (MFEZ) to also develop the Lusaka sub-zone.
“They will start the implementation of the Lusaka sub-zone as soon as the rain is over and they pledged $300 million,” Mr Mutati said.
He said that the Government signed an MoU with China Africa Development Fund that has appointed Zambia as the regional office on the continent.
Zambia signed another MoU with Beijing Gold Common Mining Investment Company to deal in the construction industry.
In the Government’s delegation to China, there were representatives of 50 Zambian companies that were able to secure joint investment ventures with their counterparts in China.
One such Zambian business entity was Biomass PLC, which managed to enter into a joint venture with Walhan Kaida for the development of bio-diesel using jathropha.
“The initial investment for this project is US$400 million and this is purely private sector investment,” Mr Mutati said.
As such, he said, politicians should desist from complaining that the president’s visit to China was a waste of resources and time, saying the move has proved to be beneficial.
It was Government policy to attract investment not only from China but other countries saying next week, a delegation would be sent to India to lure investors from that country.
[Times of Zambia]
Shamoneka isha campaign for MMD
I will belive it. Only because its from Mutati!
Yangu tata ichalo chesu nomba bashitisha oweee!!! :((:((:((:((:((:((
Ba LT I meant to say ‘ uku s h i t i s h a’ why censor? 😮
More loans. did parly approve this? Bakapanga tabala pwisha ukulipila inkongole bale sendapo na shimbi!! More campaign money for Movement for Mass Debt but it wont help them next year. Twala senda naifwe ku taiwan.
This money will just end up in the politicians pockets.
This is part of the money you want to give to hopeless Mugabe?
We are going to pay all these loans back, prepare for colonisation Part 2.
Our kids and grand kids will suffer big time…=((
Did they go to get loans or other investment. What can we be proud of if we just keep borrowing? I thought they were bringing in investors with thier own money. Have they tabulated how we will repay that loan.
A Pay-Off we have to pay back. When are we going to LEARN to build ourselves using our own brains to the level we can lend out also? Its utter foolishness to borrow instead of learning how the person you are borrowing from went to that position!! It is pure stupidity to be happy that you have borrowed and you have such a general plan to spend on quote “hydro power, housing, road infrastructure and other sectors”. What are the other sectors and what is the SPECIFIC plan and expected results imwe mwe fibupa mwe ma Zambians? If we spend one billion in hydro power, what are the extrapolated benefits, years it will take to return the investment etc? Which roads will be developed so that DEVELOPMENT will actually take place? How much? Who will answer for all this BS loan?
I am surprised that the government can source a US$ loan for Zambian housing development. Other aspects of the loan appear positive though. I also believe that by the end of next year the Zambia will be owing over US$2 billion to external organisations, and be wll on the way to marching the KK era debt levels!
🙂 So realist no# 2 you believe just because it’s Mutati putting us in unnecessary debt. China is buying Africa not building it. This is a great way of implementing imperialism, if only the British had been smarter. China waited until African nations were actually voluntarily asking to be bought lol. Ati free trade zone. There would be riots if that was implemented in the US. Just remembered China now bank rolls Nacirena( America aswell).
imwe mwe bantu…inga mulungushi text tiles in kabwe what are these guys doing about it cos govt was in partnership with the chinese govt cant some of these funds be used to recapitalise that company..i mean 1 billion dollars nipatali…!!!!…:((:((:((:((:((:((:((
**== Here is a great Idea, send a high powered delegation to Japan and find out how a tiny island is the largest producer of machinery, vehicles and electronics in the world. Am I the only one that has always thought about this being a great partner. Or how Israel feeds itself with land probably fertile by God’s doing though not as fertile as Zambia is prosperous.
The chickens will come home to roost one day with all these loans!! How long has Zambia been borrowing, and what benefits has all that borrowed-wealth brought to Zambia? Other than inferior infrastructure (if at all), high cost of living, poverty, corruption,etc, what else is there to show it.
You let Foreigners get our mineral resources out of the country, almost free of charge, and then you turn around and sale the future of your children and grandchildren by getting Zambia deeper into the “debt trap” once again. These loans will come due some day, when most of u people making these decisions are long dead and your children and grandchildren will be the victims.
How about a “Windfall” tax on Copper exports? That would generate enough capital for some of these projects, right?
Mwanawakwitu @#15 It’s an inherent lack of capacity, asking a grade one to solve calculus. Nothing to do with education but sheer dullness.
Almost no one one on this blog is spreading the so called high powered delegation bringing us into more slavery. A borrower shall be a slave to the lender! We need investment, not borrowing. Very soon we will crying for HIPC completion point – hicup
Yaba here they go again – boasting about getting a loan! Retards…
Mwanawakwitu #13:
I just wanted to make a point that Mutati is one of the very few in the pack that seem to know what they are doing. There should be nothing wrong in borrowing provided that the projects are bankable. But as usual, our own birthright, greed, will spoil the broth.
This is broad day light banditry at its best! China has now bought Northern and Southern Rhodesia, but we will get it back soon.
Hang on a minute! Did any of these so called educated Zambian politicians ever bothered to check what concessional financing mean? Why would you borrow money to rehabilitate the roads only to contract Chinese poor contractors?
These people are beyond retards!!
i guess the loan will be spend as petty cash for ministers and by-elections. I agree with most of you learned guys. Tell this retard govt that a loan is a loan no matter how much and how long. This country is poor enough not to borrow money without a clear-cut plan and with no repayment strategy attached whats so ever. Now whats this also “the government of China agreed to give Zambia a grant of US$10 million for use of whatever purpose needed for the completion of the Ndola stadium” with hungry corrupt mouths open will this money be put to good use and well accounted for?? watch this space. as long as the people of zed are not holding govt to account for resources, this circus continues…
TOMORROW IS SHOPPING DAY!
@ no# 17 You my friend loose canon are very correct, they were actuallycelebrating the loan, and I was like wow! If the had brought in combine harvestors, irrigation pipes; Toyota plant car manufucturing equipment I would have been happy. Even Chinese fire works to amuse people on the numerous holidays Zambia has so as the have recreation other than drinking or smoking I would have been happy. Cause normal play an work make thandiwe a smart girl. No# 20 realist I get you but I think Mangande is a better economic wiz not president though
Loans which contract chinese companies to do the construction! It’s a disgrace, especially from the granters side. It’s daylight robery. How is the loan going to be paid back. Can’t trust the communists.