Find us on Google+

Friday, 14 September 2012

Zambia's International Bond Issue

Government this week sold a long-awaited $750 million Eurobond - the largest in Sub-Saharan Africa - in an effort to tap international capital to meet its infrastructure funding needs. The maiden 10-year dollar bond was issued with a 5.625 percent yield. A rate more superior than some Eurozone member states struggling with debt (e.g Portugal). More than $11 billion of orders were received for the issue - signalling the overwhelming confidence in the nation's future prospects. Full statement below - which sadly is vague on key areas e.g. need for a debt management strategy and the criteria for infrastructure prioritisation. Once again we are being let down by a poor opposition and civil society, which is failing to hold this government properly to account on the need for a proper debt acquisition policy. Especially given that Mr Chikwanda thinks there's further room to borrow more. The borrower is a slave of the lender. If we are to borrow more, the slaves (the people) surely need to have a greater say in the process. 
Zambia International Bond - September 2012


  1. The opposition is not letting you down. The UPND have expressed their views on this. Besides the country has gone back to a political environment that is akin to a UNIP one party state. Democracy is clearly been eroded in Zambia. The country is going backwards. I wonder why this blog has stopped covering issues concerning governance it it used to do when MMD was in power. This may be an economics blog but economics is not separate from economics. Chola what has happened? What are you afraid of?

  2. @ Anonymous.
    You are asking what Chola is afraid of. why dont you indicate your name as well? what are you afraid of? So let know know you sir.

    The only thing that makes me wonder is whether most of the decisions make especially this year have been fully consulted. Minimum wage, now this. Hope we wont regret this in future. With the corupt mentality of our politicians I hope this money wont end up in peoples pockets.


All contributors should follow the basic principles of a productive dialogue: communicate their perspective, ask, comment, respond,and share information and knowledge, but do all this with a positive approach.

This is a friendly website. However, if you feel compelled to comment 'anonymously', you are strongly encouraged to state your location / adopt a unique nick name so that other commentators/readers do not confuse your comments with other individuals also commenting anonymously.