Thursday, March 28, 2024

Zambia cancels 1.2 billion dollar Oil deal

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Zambia has ended negotiations with South Africa’s largest bank to finance a 1.2 billion dollar (762 million euro) oil import deal after disagreements, state radio reported Thursday.

Zambia’s energy ministry permanent secretary, Peter Mumba, told the state-run Zambia National Broadcasting Corporation that his government failed to reach a deal with South Africa’s Standard Bank. The bank had been selected to finance crude oil imports from Kuwait.

“The government is not happy with some of the conditions the bank had proposed,” Mumba was quoted as saying by the radio.

He declined to disclose what these conditions were.

Early this year, Zambia awarded a contract to a Kuwaiti firm, the Independent Petroleum Group (IPG), to supply crude oil to Zambia and the South African bank won the tender to provide financing for the deal.

Zambia will look for other financial institutions to replace The Standard Bank, picked after a competitive tender process, he said.

The Standard Bank, South Africa’s largest banking group, has about 1,000 branches and is present in about 40 countries in Africa and major financial centres of Europe, North America and Asia.

28 COMMENTS

  1. # 1, even if we had oil, don’t even dream that we could ever be better off with it. We would probably be fighting a civil war by now (cleverly instigated by the US: just look at Iraq!).
    Or, most likely, docile as we are, BP would have us on it’s colonial hook like they’ve done in Nigeria.
    We were once the world’s largest supplier of Copper after Congo and Chile, but where have we ended? Chile’s economy is the strongest in South America today.
    There’s more to be done before we can run our own resources successfully, and I don’t think it will happen in our generation. We need more Obamas, Gadaffis, Nkhrumas and Lumumbas in Africa today! Not imposters like Mutengo Wamabele!

  2. Why do we even need to go to Kuwait for oil Imports.I mean we can just try to convince the Angolans and get oil imports from there.Angola is now one of the major oil producers in africa and opec.Why not ennter into a deal with them, construct apipeline from there to zambia.I think that will be much cheaper.

  3. Rajan Mathani is willing to finance this tender. Stop listening to political rubble rouser. Give Finance Bank the tender or the Bank i work for here come and fill the void. We have been talking some on lines of entering that market to help meeting GRZ fiscal challenges on long term commitments if need be.

  4. I totally agree with Zambian.Stanbic & FBZ applied for this deal.Stanbic was given chance and now negotiations have failed with this bank!

  5. Oil issues have to be dealt with caution and foresight. Oil countries in one way or the other have wars. Let Zambia learn from these countries and make wise new clean deals. Otherwise in the whole world, oil is war. Let us take our time.

  6. The Oil deal with Stanbic was in the first place a flop as you know decisions of this nature would have to be remotely made in South Africa. Whats the way forward with the looming fuel crises in the Country, already Luanshya has fuel shortage.
    Please, Please dont pretend that all is well, Permanent Secretary (Peter Mumba) has started promising motorists that the Country has enough fuel stock. We have had enough of promises that never materialises – ask Mpombo.

    Peace…..

  7. Oil is a big issue especially in Africa and the Middle east. If Zambia does have oil, let it stay stagnant for now because we don’t want a DRC warlord crossing the border so as to arm our peaceful villagers with dangerous weapons or Mr Sata forming a guerrilla army after losing elections in 2011. Oil always equals WAR and CONFLICT especially in Africa. Even Nigeria has got problems in its Delta State and a civil war might breakout at anytime. Sudan also has got civil war going on in the Oil rich Dafur region. Angola is uncertain for now, all we can do is just hope. Gambia and Equitorial Guinea almost went into conflict over an Island thought to have oil.

  8. If Zambia has got Oil, let it stay for now and we’ll get back to it later. Maybe when we run out of copper. I wouldn’t want to see Zambia in a civil war or invaded by USA because they accused us of having biological weapons. Oil is a dangerous resource to have, especially in Africa. It’s almost like every drop of oil equals a drop of human blood. Lets continue importing Oil for now, maybe in the future after our constitution and political situation is stronger, we can get into drilling the Oil mines, but thats if Zambia does have oil. I seriously doubt Zambia has got oil, Theres no proof showing that.

  9. These negotiations were destined to fail simply because the government were not really interested in give stanbic the deal so they came up with impossible conditions. The preffered bidder will now be given the deal! The Zamabian people will now be satisfied that “due process was followed and its transparent”

  10. why do you guys talk about things the government has already resolved? We wont work with Stanbic bank a south african firm we will look for another financial company. Oil is becoming very expensive even in other countries. Remember Zambia is a landlocked country!!! what ever we do involves a third part. Yes Angola has oil but its not the best oil. Zambia needs good oil.

  11. Lets start pressurizing our leaders to invest some of our taxes in bio-fuel projects, with access to about 30% of southen Africa’s fresh water, our country is blessed with a plentiful supply of water and could even rival the United States of America in maize farming if we work harder.

  12. Do not make Oil deals that will forever enslave Zambians to foreign companies even after Mwanawasa and MMD have left office in the next presidential elections.

    Secondly,MMD need to lead parliament approve any loan or grants that it gets from financial institution. Parley financial oversight will bring responsible borrowing for the nation.

    PF Given Lubinda has been pushing this kind of law that will allow parliament to approve any borrowing by government..Who knows who much the chinese will reap with so many loans to Zambia?

  13. There are no oil deposits in the bowels of Kavindeleland period! Otherwise we would not be talking to Standard Bank of South Africa to finance our oil imports.

    Now the stupid Zambian government will learn a big lesson, why did they sale ZANACO to Rabobank? Going to Mathani is out of the question, the thief is also being investigated by the Task Force for the Carlington Maize scum he hatched with Chiluba.

  14. This GRZ is brain dead. It has no capacity to do any good for Zambia. Start agitating for its removal. When is the coup due?

  15. #18
    Stop pushing for coups or wars. Zambia has had 48 years of peace and we plan to keep it that way. You do not want to see what war can do, especially in Africa where it drags on for years and children are given arms so they can take part in the war. Even superstition comes into play where CANNIBALISM is practiced during war in Africa. If you want to get rid of the govt, wait for 2011 and exercise your right to vote. War is no answer, it’ll just destroy and make the country worst off than it is today.

  16. Can we talk about the conditions of the South African Bank that government did not like. Everyone imports oil, that is a non-issue. The issue is how it is financed. I think this is a purely business matter. In financing matters, the lender and the borrower (in this case the government) both have perceived bargaining power. In this case, Zambia think they have the strength to demand better terms from the bank, or walk out. This is what business negotiations are about. Who can blame the government – it is a stable, strong borrower that will not default on its loan facilities, so it can demand suitable terms, afterall there a lot more banks that can finance the deal.

  17. OIL IS JUST NEAR BY IN ANGOLA WHY GO TO KUWAIT ONE WAY OF STEALING GOV MONEY
    STRIKE DEAL WITH ANGOLA CHUCHU WHAT WAS THE REASON YOU GOING TO ANGOLA JUST TO VIST COME ON BE THINK .

  18. #21
    Indeni cannot process the oil from Angola. Govt is also trying to allocate $150 million for getting equipment that’ll be able to process the oil from Angola. After they get the equipment, they’ll begin importing the oil from Angola.

  19. #18 you are the one that’s brain dead for paroding for war on the internet! Don’t you know that you can be arrested for inciting others to support a coup to overthrow the government of The Republic of Zambia? In case you don’t know, that is TREASON and is punishable by at least 15 years imprisonment or death sentence when convicted. That is the Law.
    If you run out of arguments, always take heed. Silence is golden. It is better to stay dumb than get into trouble for a bag of careless talk.

  20. Foreign banks cnnt help all they want is to make profit. Mahtani has been vindicated he does things with the country at heart not for selfish needs, now what happens if no financier is found

  21. #27. walaba ati insurance covers for Parastatals were moved under unbelievable circumstances from ZSIC TO PROFESSIONAL INSURANCE owned by Mahtani.Same fella was involved in Carlington maize saga.Is this the guy you want to involve in oil financing for the country ? Think it over SIRRRRRRRR

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