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Monday, 31 March 2014

Zambia Debt Watch

Zambia recently borrowed $14 million from Kuwait in order to set up a new teacher training college in North-Western Province. The loan agreement will last 24 years, preceded by a 4 year grace period. The project is expected to commence this year and complete end 2015 / early 2026 at a total cost of $20 million. Government is funding the other $6m through other means. (Source : Lusaka Times)

China is lending Zambia $41 million at two per cent interest for the construction of a 120-kilometre power line between Kariba North Bank and Kafue West. The loan is over a period of 20 years with a grace period of seven years . GRZ hopes that the project will help boost transmission and minimise power cuts in the country (Source : The Post

Government has also borrowing $163 million for ZESCO from Nordea Bank AB of Sweden and Standard Bank of South Africa. The loan agreement is designed to facilitate construction of an extensive 132KV sub-transmission lines and establish supply sub-stations to facilitate electrification of public facilities, schools, rural health centres, Government institutions and chiefs' palaces in North Western and Western Provinces (Source : Times of Zambia)

Zambia has acquired another loan of $67 million from the World Bank. The loan is intended to help Zambia improve its health delivery systems and utilisation of maternal, new-born, child health and nutrition services. The World Bank continues to give money to Zambia despite having no debt management strategy in place, which has seen borrowing rising substantially. Zambia's health sector has also been characterised by rampant corruption (Source : Zambian Watchdog

Chola Mukanga | Economist
Copyright © Zambian Economist 2014

1 comment:

  1. am

    I was wondering if there are any stats or reports on the success of the infrastructure projects funded by the borrowing. Obviously above are too early to measure. But others must be measurable on finance so far committed to the project. Projects are good if they come in on time and budget but there is a history of things being started, the money being spent but at the end nothing much to show for it. The report could show money well spent and money wasted against each project. In the latter case it could then show the damage done to the future prosperity of the country i.e. debt incurred for nothing.


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