GOVERNMENT yesterday signed two loan agreements with Saudi Arabia for the purchase of 50,000 tonnes of urea and modernisation of the University Teaching Hospital (UTH).
Under the first agreement, Saudi Arabia will give Government US$20 million to transform UTH into a modern hospital although the total cost of the project is US$40 million.
Speaking during the signing ceremony, Minister of Finance Alexander Chikwanda said the US$20 million will be used to rehabilitate, extend and restructure UTH to enhance its capacity to provide specialised health care services to Zambians.
Mr Chikwanda also said the US$20 million loan Government will receive under the second agreement will be used to procure 50,000 tonnes of urea.
“Government has identified agriculture as one of the key sectors to drive economic development and contribute to job creation. We are grateful to the Saudi Arabia Fund for their continued support in advancing Zambia’s development,” Mr Chikwanda said.
And The Saudi Fund for Development chairman and managing director Youset Albassaun said the signing of the two agreements shows the interest that Saudi Arabia has in supporting Zambia’s efforts to promote the well-being and prosperity of the people.
Mr Albassaun said the two agreements will also strengthen the bilateral cooperation between Zambia and Saudi Arabia.
Meanwhile, Alliance for Better Zambia (ABZ) President Fr. Frank Bwalya has hailed Members of Parliament for the unanimous support rendered to the motion to have Parliament approve any loan contraction by government.
Fr. Bwalya has told Qfm in an interview that Zambians have consistently spoken with one voice for Parliament to have oversight on government borrowing.
Fr. Bwalya notes that the Patriotic Front has been reckless in borrowing and that allowing them to continue borrowing at the rate they are doing would lead the country into a debt trap.
He adds that at the end of the day it is the people of Zambia who are going to pay back the money hence it is only right that their representatives in parliament approve government loans.
Fr. Bwalya states that the development is timely as failure to come up with such measures would have landed the country serious debt problems.
He says the move by Members of Parliament to support the Private Members Motion moved by MMD Chipangali Member of Parliament Vincent Mwale will help reduce unnecessary borrowing by government.
Whilst the purpose for borrowing given here sounds good, do we have a concrete plan on how gonna pay back these loans?
Good question @ Joe!
Yes the plan is there! we shall use PAYE to pay for the money u want.
Are you thinking of the posterity at all?
Rubbish government
Thanks
With the growing population of Lusaka, isn’t it time that government invested in a new General hospital to easy the current pressure at UTH. Of course UTH can still be a referal for certain specialities. Of course there are clinics spread around but it is about time Lusaka had another “big” hospital.
Borrowing for fertiliser at end of October and farmers are planting. PF
This chap knows that the debt he is signing will not be paid by him but by his grand children. This is because by then he would likely be dead. Only a few individuals are directly benefiting as most of it is going into individual pockets.
We do we clear our credit cards?I the same way the Govt has sources of income do not just critics PF govt is working and the Hon MPs are aware hense this evil motive.Western countries borrow heavily including giants.
Kaya, we seem to be getting ourselves into even deeper trouble . Personally I can’t see where the money is going and how they will pay it back? MMD at least left something in the accounts, Pf has blown away in a year.
When every country refused to lend money to Idi amin Saud Arabia lent him money. Idi amin and Sata the difference is the same only that he came to power at a time of multi party democracy other wise we would have been in trouble.
Ba Mushota ni Are you thinking of posterity. Not THE posterity. Article is not needed.
lyonse, its ‘nichekeleko nichekeleko nichekeleko’. just borrowing borrowing, when will government ever sit down and start thinking about profitable ways to generate money which will help citizens re-generate money, after these rehabilitations finish, people will destroy the property and again we will borrow it for rehabilitation? great plan! in fact amazing! lets borrow and not work for it….
why we can’t tax the mines accordingly is beyond me.
we rush to borrow instead.
this is utter rubbish to say the least.
What is amazing is that these pipo had $200mn to invest in street cameras but opt to borrow money for fertilizer and UTH
There goes down the drain the economic miracle left behind by Rupiah Banda..low debt,high forex reserves,govt finances in top shape and a deftly managed lion economy.Now its all in tatters.
Ba RB is History what a bad end for HE Banda.HE will leave a mark having installed street cameras created new districts,New currency, new Universities,ring roads,
Sounds good!! make sure the monies is used according to the plan.
The loan is of good cause if it will be implemented wisely, hopefully it won’t go to “more money in yo pocket”, although Fr Bwalya has a good point too. Zambia is already in a crisis, n getting more money will results in more people being poorer as stated by Fr Bwalya. UTH smells death even though its a hospital, am sure that money will do justice to its state. Crossing finger n toes!
ITS GREEDNESS,ZAMBIA HAS MORE THAN THAT MONIES
This is just more money in their pockets. A country borrowing US$40 million? This is a disgrace. It is not even enough to buy a soccer player in Europe. Serious projects would require you to borrow in the region of US$1 billion. This habit of borrowing a bit here, a bit there will never take us anywhere. The reason this is being done is because, it is easy for them to steal that way. Even a financial institution will tell you to consolidate your debts for better management.
PULITZER PRIZE PIECE OF WORK
50 years after independence and we are still borrowing peanuts from every jim and jack…I’m sure if the ministers and the president tightened their belts and slashed their salaries and allowances will would raise that figure in 4 months…one wonders where the money saved from subsidies is really going to?
That is why we need a graduate in statehouse
Most Zambians are quite pessimistic, even when government borrows for right reasons complaints abound – government borrowed to build 650 clinics, government has borrowed to modernize UTH and to inject pride and sustainability in agriculture still more complaints! Umuntu! Muntu!
We are not complaining for nothing? You borrow a loan from a bank with a view to build a house, but instead you spend the money touching women’s breast and serious looking at their faces. Mwawako serious.
Do you also believe that pigs can fly?
They borrowed to build 650 clinics via Indian loan from that country’s development bank , it used some of the Euro bond to rehabilitate UTH and yet again it pouring some more borrowed money in UTH, why was this not included in the budget? Where is all that money saved from subsidies going to? You look like a sensible wise individual from your photo I doubt if you are this careless in managing your household bills with your missus.
Wake up!!
20 million usd for 50000 tonnes of urea. come on is fertilizer that expensive do,your maths here.even if we bought this fertilizer at this cost do you think the produce we will get from its use will give us anything close to 20 million usd.what pride and sustainability are you tallking about.sustainability means the agriculture produce from this fertilizer should be able to repay the loan and leave a profit for continued use.this is debt that this govt has no idea on how to repay and borrowing just because some how the monies are available so lets borrow.pathetic
Loans-loans-loans after 49 years of independence,when will you do something yourself??????????
That’s why I keep saying Independence is just on paper, not on what is obtaining on the ground.
If we are Independent why cant we stand firm on ourselves, unless someone outside this continent holds our hands to give what we are lacking and then show our blind eyes the directions. Latter huge sums of money are charged upon us for borrowing!! Do we even return them? Or is there a working plan to return back what we owe?
this man is just very good at borrowing and not spending..eish..its so hard to believe we are going to be paying all these debts even after he dies..
what happened with the money Prof Chirwa left at Zambia Railways?
That money given to ZRL is merely going to politicians companies; $120 million to rehabilitate the rail track from Ndola to Livingstone is a drop in the ocean unless if its a patch up job. If you are going to rehabilate a track then you are also going to upgrade bridges and stations these things go hand in hand. We will revisit ZRL in a years time there is nothing happening there believe me you. Money is merely going down the drain and our children will foot the bill in 10 years time.
Zambia is now another Greece.
Greece proved that running into debt is the easy part,its running into creditors that really hurts.
Mr.Chikwanda you are the most useless minister of finance,your borrowing is not measured on the economic growth.pls you are in the afernoon of your age don’t leave us with a mountain of debts.
You need to use that money for the intended purpose not to give yourselves contracts no.
Chikwanda’s construction group of companies will be the beneficiary and supply contracts all going to his fellow PF ministers companies. If one were to carry out an audit, Zambia would be surprised at how this circle works.
This is what happens when you have old people running the show as they will not be there to pay for their actions in 10 years time as they will be long gone why should they care…our external debt is nearly three times what it was 2 years ago, just last year this fossil Chikwanda has borrowed a whooping 14 times abroad!!
*had borrowed
It is just a part of Independence celebration
hahahahahahahahhaa well thought of…they want to entertain their girlfriends to infinity
What happened to the modern Lusaka general hospital? infrastructure development has become the fast track route for corruption and money laundering. When our politicians start politicising things that matter to people then you know a country is in serious trouble. They are singing and dancing over the railways, airline, roads and now hospitals. On paper the idea is good but do we have principled people to carry out such colossal tasks to benefit generations? The old man does not care because he knows that he will not be there when the unborn generation will suffer the consequences of these debts.
Problems after problems when wil we use our own Zambian money
embarassing to say the least, 40 million dollars? as a nation, a loan, sh1t got real!…
infact when i was reading the headline, my french girlfriend walked in on me, i closed the window so fast, now she is questioning what i was hiding…i have to say this is embarassing
I don’t blame you this fossil Chikwanda would do anything to sign on the dotted line…we have a budget that is part funded by donors and he is borrowing like there is no tomorow. The man has no clue what he is doing or managing public finances, how can he talk of job creation when he is creating more jobs in Saudi Arabia from importing finished products from there…also remember that the gov’t signed another contract last year to import another type of fertilizer from Asia.
hahaha, i hide the page when i’m on a work PC…..damn it !!! lol.
Its an utter disgrace a country of 13 million people that is exporting $40 million worth of copper bars eveyday on just one Tazara train to Dar signing such silly loan deals. This is why the say poverty is in our minds!!
If you fail to repay the loan. You will all be subjected to be Muslims.
lol…..good thing im a muslim already.
Running into debt is the easy part.Its running into creditors that really hurts.
Just how many times is UTH going to be “modernized”?
This is the man that put UNIP in debt
He is the same man who led to the collapse of the economy and the eventual downfall of UNIP. He was brought back simply because these elderly people want to govern us they were they know each other. Pf will fail us totally with these recycled fossils.
More by elections then.That is the development this government knows
Big mistake borrowing money from the destroyers of Syria. I am concerned that S. Arabia could use these loans to push for islamic agenda in Zambia. I do not trust these people because they are greedy and want islam to be the religion of the whole world.
THE PROBLEM IS ABAKOTE NABAFULA MU GOVT, FROM PRESIDO TO FOSSIL CHIKWANDA. LITTLE WONDER THEY WANT TO RAISE THE RETIREMENT AGE TO 65 SO THAT THE GOVT CAN BE FULL OF ABAKOTE AT THE EXPENSE OF THE YOUNG GENERATION. THEY ARE BORROWING RECKLESSLY BECAUSE IN THE NEXT FIVE YEARS MOST OF THEM WILL BE HISTORY. BAPOMPWE BEKABEKA NELYO BAKOTELE. MULEUMFWAKO INSONI LIMOLIMO.
Did you know that Ministers of finance get a .02 percent of ant deal they broker. That how the get their Mulio. From Gibbson Chigaga to Penza they all got a ka percent of the deals. So calculate ni shinga
The only thing sata’s uncle Alex is good at- getting kaloba for Zambia while he eats commission on them.
Abakote aba their day has set. A new day has come to which they belong in retirement and not in leadership. They are unable to understand the dynamics of the new globalized world trade and are busy sinking us down the ‘Atlantic Ocean’. The only way forward is mass retirement of these appointed ‘abakote’ and bringing in new blood. Pf in not short of younger MPs.
Bring back Musokotwane or Magande as Finance Minister. Fundanga should also get back his job at BOZ. Chikwanda’s only qualification as Finance Minister is that he is a relative of the President!
FERTILISER! How can you borrow so much for fertiliser? Where are Zambia’s economists to guide government?
imagine, govt borrowing money to buy fertiliser and meawhile they have increased their salaries by 23%…greedy goverment
This is the man who stated that watches had to be taxed because they were luxiries in the 70s when he was finance minister in UNIP. He loves loans and thrives on them. He never grows the local economy as seen by the freeze in employment of citizens in the GRZ when we all know that this government has serious vacancies for technical people at all levels much required to modernize Zambia. He is a washed out old croak.
taxing watches really.kekekekekekek!!!!!!!!!!!am actually laughing out loud.and he is our chief economic manager now,21st century ma ma ma ma,we are doomed where is peter magande kanshi.
Silly government borrowing little 40m to put more money in their pockets. Where is the money from fuel subsidy going? Where is the money from mine taxes going? You should have just asked Opra to give you a loan.
No matter how much the hospital is modernised, this will still not stop these muppets from running to hospitals abroad, wasting taxpayers money.
The old thing has run out of even silly ideas. Chikwanda is simply clueless.
Granted big world economies were not built in half a day. The real difference between the developed economies of this world and Zambia is that the former took tough decisions and crafted clear policies to buttress their development strategy and our approach is no more better than a rudderless ship.
Today 22 Ctober 2003, Speaking
in his capacity as the ANC President,
President Zuma was quoted as saying that
people should stop thinking like Africans
in Africa and accept the fact that
Gauteng roads were not like some
national road in Malawi……
VERY SOON SOUTH AFRICA WILL BE TOO
FAR AHEAD IN INFRASTRUCTURAL
DEVELOPMENT. ZAMBIA WILL BE TOO
FAR BEHIND.
PLEASE PF BORROW MORE MONEY
BEFORE ZUMA ADDS US TO HIS LIST
OF POORLY DEVELOPED
COUNTRIES IN THE REGION.
PF PLEASE BORROW MORE AS LONG AS
MULENGA SATA IS NOT ALLOWED TO OPEN
FOREIGN ACCOUNTS IN SINGAPORE AND
BEFORE COPPER DEPOSITS ARE DEPLETED.
SO FAR LUAPULA ROADS AND YOUR OTHER
DEVELOPMENT EFFORTS LOOK LIKE
ANY IN SA.
I echo your sentiments we need infrastructure UK nets billion of pounds from Universities,Airports,hotels stadiums and good roads .PfF we are in support as long as there accountability.I thought father Bwalya will support to have UTH rehabilitated.Its better to do so now.
@ LUAPULA PREMIER
HA HA HA
Your honor borrowing has never solved our problems in the past. I am yet to hear of any successful person who has excelled through the kind of borrowing you are advocating.
some of the Eurobond money was also spent on UTH ….,
Any borrowing that helps to alleviate the problems of the citizens of our country is welcome. However, we have to take this borrowing with a pinch of salt especially given the fact that there appears to be a lot of competing agendas within the ruling party (PF). We hope there will be adequate transparency to show that the borrowed money has indeed worked for the intended purpose.
‘THE African National Congress (ANC) stated
on Tuesday that there was no ill will towards
the people of Malawi or the continent, after
President Jacob Zuma sparked outrage by
telling Gauteng residents not to “think like
Africans in Africa” and pay their e-tolls as the
highway “was not some national road in Malawi”’.
NO BORROWING = NO INFRASTRUCTURAL
DEVELOPMENT.
NO INFRASTRUCTURAL
DEVELOPMENT=NO INVESTOR WORTH
THE NAME.
ITS LIKE A WOMAN WITHOUT MAKE UP.
NO MAKE UP = NO SUITORS.
LET US MASSIVELY INVEST IN OUR INFRASTURE.
MONEY FOR THE POOR WILL JUST FLOW.
THE MADALAS IN PF KNOW THE TRICK!
since when did fretilizer become infrasture.redard.
AH! No make up no suitors. Is it wise to compare our country to a promiscuous woman? I would rather our country remained a virtuous woman who relies on her natural beauty to attract a honest life long partner (investor).
How do we clear our credit cards?In the same way the Govt has sources of income do not just critics PF govt is working and the Hon MPs are aware hense this evil motive.Western countries borrow heavily including giants.
But ninshi ku saudi arabia balichuma abantu babo but they have money to lend! I hope the zedian govt uses this money wisely. Knowing the chaps behind these borrowing, i fear for the worst because the future govts are the ones that will suffer and struggle paying these loans back!
@Enka, RB will be forced by people to come back. Zambia had the best growth and development during his Under 3 years rule.
Highest reserves, property and construction boom, diversification of economy. Cartel was spewing lies and hatred. Now we know the truth and will vote wisely.
Consumption
fail to pay and sharia law will be imposed here.lol
Please you zambian politican dont you have any pride?Who shall repay this loans,your children and grand children,or do you know already it will be scrapd and never be paid back?Shame.
Buy urea and when floods come it all flows into the rivers or melts down to the water table for the water that we drink.
The govt is broke and with all this by elections coming, they need money hence the borrowing with a disguise to use the money for urea/uth crap which cannot be balance sheeted.
People term to borrow are not hard work even so this goverment will put more to the people of zambia to pay more money to saudi arabia.
World price of urea is about 320 US dollars per tonne. See this link below:
http://finance.yahoo.com/news/world-urea-prices-fall-320-163134254.html. On the other hand Zambia will buy the urea from Saudi Arabia at 400 US dollars per tonne. This is 80 dollars more or a total sum of 4 million US dollars. The question si how will this figure be accounted for: logistics, procurement, bank charges, nchekelako?
Don’t borrow from an Arab or a Jew. They don’t forgive debt. Nor do they forget it. They will demand their pound of flesh when the time comes. Don’t say you were nt warned