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Alba Iulia
Saturday, June 19, 2021

Standard and Poor’s allocates Zambia a B+ rating in its draft report.

Headlines Standard and Poor's allocates Zambia a B+ rating in its draft report.

Finance and National Planning Minister Situmbeko Musokotwane

ANOTHER international credit rating company has assigned Zambia a B+ rating in debt sustainability.

Minister of Finance and National Planning Situmbeko Musokotwane said Standard and Poor’s has allocated Zambia the B+ rating in its draft report.

Standard and Poor’s is one of the world’s best three professional companies which assesses countries worldwide on various parameters including political stability and economic performance.

“We have received a draft report from Standard and Poors, which has given Zambia a B+ rating on the impossibility of failing to honour external obligations,” Dr Musokotwane said.

He said this at Government Complex in Lusaka on March 22 shortly after touring part of the building under construction.

The rating comes soon after another reputable ratings agency, Fitch, assigned Zambia a B+ rating in economic growth and political stability, among other areas.
Dr Musokotwane said the latest rating puts Zambia in an advantageous position to access finance from all over the world quickly for investment.

He said the Standard and Poors rating is an indication that the economy is continuously recording growth.

Dr Musokotwane said Zambia’s economic growth translates into an increase in the country’s capacity to borrow internationally and locally. He said the rating will give institutions worldwide confidence to lend money to Government, companies and individuals in Zambia.

“When you are rated B+, you have a sticker that this is a B+ country. Institutions from different parts of the country find it easy to lend money to Government, companies and even individuals,” Dr Musokotwane said.

He said Zambia is not the only country that has been assessed by a professional international credit rating company. He cited other countries such as South Africa, Kenya, Ghana and Nigeria which have already undergone assessment by credit rating companies.

Fitch, assigned Zambia a B+ sovereign rating in recognition of the huge economic strides the country has taken under President Banda.

Zambia received the fourth-highest non-investment grade rating supported by a stable outlook from Fitch.

Zambia’s economy expanded over seven percent last year, up from 6.4 percent in 2009. Growth has been driven by increased mining output, transport, communication, construction and agriculture.

The rating followed fast on the heels of global recognition for Zambia’s economic achievements in the World Bank and the International Finance Corporation’s 2011 ‘Doing Business’ report.

In the report, Zambia was named as one of the world’s top 10 reformers for ease of doing business. Zambia is also projected to be one of the world’s top 10 fastest-growing economies for the 2011-2015 period.

Meanwhile, Dr Musokotwane said he is happy with the progress Shanghai Construction General Company is making in completing the construction of the unfinished part of the Government Complex which includes a banquet hall, conference centre and offices.

Shanghai chief project engineer Jerry Zhong said the construction will be completed by September this year. Dr Musokotwane said the facility is important to the country’s economic growth as it will boost the country’s tourism.

He said the conference centre and banquet hall, with seating capacities of 1,000 and 1,900 respectively, will be the biggest in the country.

Dr Musokotwane said currently, Government is bidding for the 2013 African Development Bank conference to be held in Zambia, possibly at the Government Complex.

He urged the private sector to invest in expanding the country’s hotel and lodge accommodation to prepare for the boom expected in the tourism sector when the conference centre and banquet hall are operational.]

The unfinished part of the Government Complex is being constructed through the US$28,000 loan Government contracted from China last year.

[Zambia Daily Mail]

143 COMMENTS

  1. For How long shall we continue talking of the mining sector. Clearly we have failed to earn much from it and even if we did that can never last. What is important is to follow in Mwanawasa’s footsteps. Agriculture! We need more Agricultural policies and not fluke bumper harvests.
    This RB administration is only claiming victory now, what are they planning for our future??
    There is no serious action for our future, Copper will be a thing of the past at the rate the foreign investors are digging, and what will happen next?
    We need more agricultural policies and we need factories and industrialisation.
    The problem with Zambians is we just want to complain about wrong issues, no political candidate even mentions setting up industries and factories….how do others survive

  2. Magande was the best finance minister because he was using a cash budget system not this katombeko who believes in debt.

    All these project banda is commissioning were started by levy and Magande but the national debt was zero. Today the national debt is $1.2 billion and some [email protected]@ls are celebrating about B+ rating meaning more nkongole for zambia.

    I think this katombeko minister is used to kaloba. Instead of collecting tax from the mines he wants to be borrowing.
    B+ my A.S.S

  3. Surely in zambia we are not even mass producing copper cathodes, or copper circuit boards or copper jewelery and yet we are the first to import all those things. How can a Minister or a President even be proud? Proud of fluke bumper harvest?? Mwanawasa sang the song of Agriculture and he stuck with it, today what song are we hearing? It is the Chinese have come, they are building, they are digging, next we hear no Brazil has taught us this and that….but nothing tangible is happening. Mwanawasa brought roads, hospitals, stadiums and solid agricultural policies which led to a mishandled bumper harvest this past year. Once Zambian copper is finished, why will chinese stick around????

  4. Rabbish mmd. B+ rating which gives Zambia a chance to borrow. What nonsense to celebrate. We need people at the end to benefit not only top guys.

  5. No, on this issue you can’t bring in Magande. Magande did his job ku Finance but the policies were Mwanawasa’s point blank. Mwanawasa wanted Zambia to diversify and as a successful farmer he pushed for farming policies (and farming doesn’t even go under finance ministry). But today the top man is not implementing any specific policy apart from wooing investors anywhere he can, traveling to call for investors anywhere he can (monga ni hule). an age old saying says charity begins at home, quite alright these investors are helpful and have a benefit but for zambias sustainability, for our future grandchildren’s children and for an A+ rating we as zambians must take responsibility. we need zambian factories with zambians running the projects

  6. No, on this issue you can’t bring in Magande. Magande did his job ku Finance but the policies were Mwanawasa’s point blank. Mwanawasa wanted Zambia to diversify and as a successful farmer he pushed for farming policies (and farming doesn’t even go under finance ministry). But today the top man is not implementing any specific policy apart from wooing investors anywhere he can, traveling to call for investors anywhere he can (monga ni hule). an age old saying says charity begins at home, quite alright these investors are helpful and have a benefit but for zambias sustainability, for our future grandchildren’s children and for an A+ rating we as zambians must take responsibility. we need zambian factories with zambians running the projects..df

  7. All of them starting from this Stumbeko Musokotwane to Nganda Magande, all they can talk of is economics and not serious effects made on those suffering in the villages, the ordinary zambians even in towns. These ma ratings only help large corporations and governement, there is no real translation to most of us zambians. I agree that during mwanawasa agricultural policy affected us because mealie meal was cheaper, vegetables were cheaper. Last year there was a bumper harvest yet maize was rotting and farmers couldnt sell. FRA was forcing farmers into a corner where its either it rots or you sell for zero profits, how can the president brag about that…and at the end of the day mealie prices still went up

  8. This is the reality in zambia, any issues you hear the finance minister bragging about, starting from Magande to Musokotwane, they don’t affect ordinary zambians in any serious way. And this is a serious reflection on the job of the boss, what are his policies, is he watching his government and his ministries, does he have a long term plan for ordinary zambians??? Fuel is extremely expensive, Mealie Meal is extremely expensive, how someone can even seem calm and say Zambia is doing ok I wonder. Zambia is in a crisis, there is no shortage of food but the food is expensive!!!

  9. Government is blaming the fuel shortage on who??? Because everyone is blaming the fuel shortage for prices of commodities. If we had enough fuel, if we had more refineries and if we had better planning in the ministry of energy, fuel would be more affordable. In France people demonstrated for weeks and blocked fuel refineries but the country still had enough to last over a month. In Zambia if somewhere in the world there is any fuel issue, we have shortages, what kind of government runs at gunpoint like that. Our own copper, America has stores of it, when they say no Zambia is making too much money they can decide to melt some of that onto the market, zambia’s prices go down and our kwacha loses value

  10. are the poor people in the compounds benefiting NO, its high time we changed govt this is a democracy Zambia is for everyone. DONCHI KUBEBA.

  11. Zambia cannot be content it has a B+ rating alongside South Africa,Kenya,Nigeria & Ghana.Those countries are more diversified than we are so a downturn won’t hurt them as much as zambia.Those countries have industries & companies in other african countries & more woven into the global trading system thus more sustainable .Zambia on the other hand has achieved that rating based on high copper prices.

  12. These are just stage managed awards.Countries that are not even given awards are busy developing like Rwanda,Kenya now even Sudan will by-pass us while we sing about Copper increased production…All the so called learned in Government continue to fail us.BR,GK,Musokotwane,Mutati,Dora,Machila,Namugala,Konga,Chituwo,Simbao and many more are educated but have failed to deliver 50+1,instead they support single sourcing,awarding of all major construction works to chinese firms while zambians live in poverty.shame on you guys,zambia needs a pro active president like de sylivia in brazil did.

  13. To allocate basically means to ‘ set aside for a specified purpose’. I might be wrong but ‘allocating B+’ just doesnt sound right to me.

    #2 ur right. Both Mr Banda and Musokotwane do not know that copper is not like trees which are renewable. They went to old school where the concept of sustainability was not an issue. with these oldies who rejoice in borrowing, the future of zambia is in great danger. I wonder how zambia will be like in 20years time when all the copper will have been depleted.

  14. Yes there’s nothing to be proud of. We should instead hang our heads in shame. Zambia’s economy is basically like Jesus parable of the guy who build his house on sand at the beach. A small wind brought the house crashing down. What is happening now has already happened before. Zambia at independence was Africa’s 2nd biggest economy after RSA, all because of the high copper prices obtaining at the time. In the 70’s when the price of copper dropped Zambia’s fall from the top was a crushing tumble.
    Today history is repeating itself and everybody is excited about the rating of our one commodity economy. Our retarded leaders have failed like KK failed to invest copper money in diversified industries and develop an export oriented economy. Problem is like an i.diot child we never learn.

  15. Shanghai Construction General Company, this is the company you need to be awarding building contracts if u want to transform our towns.I have seen the structures that this company has built,they are a wonder to look at!

  16. Listen guys may be most of you dont know. But both Starndard & Poor’s and Fitch are negotiating a contract with GRZ to be doing the rating. They get paid to do this job. They both did the rating this time and GRZ will then choose which firm willbe conducting the ratings on a yearly basis. So naturally they would give good results for them to get the business. Its not like they are independent in their operations, they are being paid and thats there business so how impartial and objective can these firms be especialy that they are trying to capture the business? Its up to you to judge but please find out what these organisations are and what they do. And they are both for ba zungus from the developed countries, just another way of reaping from us by smearing butter on the face of GRZ

  17. I wonder how any people can eat this academic B+ thing. There is no substance here. Its f.oolish to be proud that youcan borrow freely. To me this is nonsense. What we need is just to collect more cash from our mines and develop the country. Give loans to locals and let them develop the country.

  18. I WONDER HOW OUR POLITICIANS CAN LIVE WITH THEMSELVES. EVERYDAY ITS PROPAGANDA, AND WHAT IS WORSE IS EVEN US THE ORDINARY ZAMBIANS HAVE TURNED INTO PROPAGANDA MOUTHPIECES! THE NEXT THING WE’LL HEAR IS PEOPLE SAYING VOTE RB LOOK WHAT HE HAS DONE, THEN OTHERS WILL SAY VOTE PF OR UPND THEY WILL DO BETTER. BUT NO ONE IS TALKING OF THE REAL ISSUES, NO ONE IS GIVING US THE TRUTH! IT IS ALL PROPAGANDA.
    ORDINARY ZAMBIANS ARE NOT BENEFITING FROM THESE ECONOMIC STATISTICS. YET A MINISTER, A GROWN MATURE MAN CAN COME AND BOAST ABOUT IT, INFACT EVEN THE OPPOSITION PARTIES SHOULD NOT TRY AND USE THIS FOR PROPAGANDA BECAUSE WHAT HAVE THEY DONE?? WHAT HAVE THEY PROPOSED??
    COPPER CANNOT SUSTAIN ZAMBIA, WE MESSED UP AND OUR TIME TO ENJOY OFF COPPER HAS ALMOST EXPIRED

  19. you are right! Zambia is really in a bad place all because our leaders are not thinking of us or our future. These ratings will help ba chinondo wefuta to do business, but our brothers and sisters ku chipata, ku shangombo, ku ikelengi,ku mungwi…this does little for them. They will enter shops today and tomorrow and find things only getting worse! RB, Musokotwane, they are not caring for the ordinary Zambians, they are only thinking what will Magande say, what will HH say. Sata, HH and the rest are also not showing promise because apart from being luke warm they have not come out clearly with strong and realistic policies! We have heard the story that more money will be in our pockets, fine, but what about factries, industries, jobs, prices of goods

  20. We can have more money in our pockets but at what expense??? Even bankers will tell you that more money on the market is not good. We need stable jobs, miners jobs are not even secure, investors sign very loose contracts and can pull out easily with no financial obligations. We need an overhaul at FRA and corrupt culprits there to be arrested, we need more food stores, more silos, more farming inputs and technology. We need cheaper sources of energy namely fuel and electricity. We just hear stories of Zambia exporting electricity and Zambia increasing electricity output but why are ZESCO bills still flying through the roof???? is electricity also being driven by diesel. What is gov’t doing about long term solutions to fuel problems

  21. america and European countries store away copper,gold and even fuel in order to control market prices and to be ready for calamities. What are you doing Mr. Minister of national Planning??? are you planning for construction of FRA silos? are you planning for industries? are you planning for Zambia to store away some of its copper, because the whole world knows that Zambia only has copper underground in mines, you gov’t dont even own any. Fuel its even worse, that Minister ku energy is so fat and is doing a pathetic job, yet all the music goes to RB, maybe its RB tolerating all the rubbish, I dont think Levy would have let this situation carry on

  22. People, do not confuse this B+ with the academic one. This is totally different. It means Zambia is a highly speculative destination for investors. For a first time rating, not bad. But, come on, it is not such a good rating. The minister is being economical with the truth. Sure, there are worse ratings out there, but we are a long way off from a credit rating we can be proud of!

  23. Typical Zambians and mediocre gvt minister.Why celebrating B+ rating when you still have A+ rating to achieve.Other countries are achieving A+ yet you dont see them on top of a hill making noise because they are busy working on sustaining their rating.Here we are celebrating and by the time we realise we will be wallowing in F rating.We can do better than B+ rating so lets not celebrate prematurely.There is a lot of wastage in this gvt.With better fiscal policies we can even achieve an A.So lets get down to work please

  24. All this, is Greek or jargon to the kaponyas.All they want is money stuffed in their pockets within 90 days.senile dreamers.

  25. .

    Its only the disgruntled minds will see this Bench-Mark Achievement as nothing.

    STANDARD & POOR is the most highly rated Rating Agency. What does this mean for Zambia?

    It means that we have ……

    (i) Adequate Payment Capacity

    (ii) Can fulfil Obligation

    Barclays Bank just announced that it will invest 15 Percent stake into Agriculture. Good move for Economic Diversification. Europe is suffering from lack of commodities and this is the time for Africa to raise stake a step in Agro Products

  26. .

    These ratings are on the same level as those from FITCH, which are:

    For example
    A+ is better than A or A-
    B+ is better than B or B-

    SOVEREIGN CREDIT RATINGS:

    1. INVESTMENT GRADE

    AAA Highest quality, reliable, stable
    AA High quality
    A Strong payment capacity A
    BBB Adequate payment capacity

    2. SPECULATIVE GRADE:

    BB Likely to fulfil obligations, ongoing uncertainty
    B Financial situation varies considerably
    CCC Vulnerable, dependent on favourable economic conditions to meet payments
    CC Highly vulnerable, speculative
    C Close to default, may be in arrears
    D Defaulted on obligations

  27. Sorri Mr. minister rating dont mean anything if people are suffering in the country. You can get as many as A plus plus but its meanless if the people still live abducted poverty. Check yourself before you make such statements because one day they will back fire.

  28. 25# @Styumbeko
    28 # Chills

    Good point. However, can you start by forging, making a good contributing to the Economy? That way, collectively, we can reach that A+ target.

    The government or Zambia needs the Private Sector so much. Therefore, we need to start coming out from the comfort zones and stand the taste of time. The nation necessitates:

    Vision Minds
    Pioneers
    Dreamers
    Entrepreneurs
    Go do it People

  29. .

    As a nation, we have become so lazy and critical all the time for nothing. Western Countries are developed because Dreamers and Pioneers came out from the comfort zones, went out to invent concepts and often-in very difficult conditions. And they are still doing it today.

    Out Government does not money like Money Markets, Corporate World. and Bonds. It depends on collecting taxes. Therefore, it needs the Private Sector. Until when we remove this mentality from our minds and faces, which blames every thing on GRZ, the nation is doomed. Of course GRZ has a role to paly.

    Africa has been spoon-fed in the last 75 years and we have found it to be the norm.

    cont…

  30. .

    We are sitting in our armchairs, not making any difference or trying to be creative and yet on the forefront of being critical just to take out personal frustrations onto others.

  31. You should be ashmed of yourselves… internatinal my foot!!! those people they dont live in zambia and walk and drive in the same potholes

  32. So this will be the legacy of RB & Musokotwane, B+ ratings? Even Sata’s crazy pronouncements of more money in 90 days are better because the ratings will not translate in Samfya or in Sinazongwe. A rating just like Sata’s rhetoric is just a pronouncement, should a Minister start bragging about a pronouncement. If the pronouncement isrealistic and comes true in a huge positive way in people’s live, only then can you brag ba minister. Mealie Meal is expensive, Fuel expensive, Copper is finishing, ZESCO is expensive…can you explain those things..and after you finish explaining will you be proud of yourself to tell your people that it is OK to have such high prices and worse off in our wonderful B+ economy

  33. a rating by the way is just an evaluation, so the current state of affairs have just be given a name, which is a B+ rating. the way the minister is bragging as though things are now changing…no all you have done is looked at the high price of fuel, the high price of mealie meal and misconstrued the calmness and peacefulness of zambians to mean they are happy and can afford and taken it to say that is B+. If that is what B+ means, that a bus from chelstone to town should be so expensive, that people should prefer walking to work because petrol is expensive, that people should have limited ours for use of appliances because ZESCO is expensive, that people should make very short calls because talktime is expensive…then your report card bwana minister is the worst

  34. So what if Zambia gets a B+…its not as though its a good rating..For crying out lound, the grade is one step above Junk status…It will just take one small riot in Mongu and the rating will be downgraded to Junk status…..Whilst there is hope, i don’t think they is a need for the Minister to be bragging and telling people as though Zambia is now a AAA rated country. Even a country like South Africa, with its BBB status still find it hard to raise capital on the international market..wonder where Zambia will find cheap financing with its “just above Junk” status….If the ratings where as good as the grades in Sku, Zambia would have a C, just below a D for fail. So Mr Minister sir, please, u are better off keeping quiet with your almost below average ratings!!!!!!!!!!!!!!!

  35. B+ eku feluka beba…you have failed musokotwane, what is B+ tell us.
    Is it K10,000 per litre petrol? is it the current prices of mealie meal and cement?

  36. .

    If you are very matured & need a job, go and search for one or get some new Set-of- Skills.
    If not use your mind to create your own way of earning a living and create jobs for others like gradutes coming from colleges.

    All creation starts in the head or mind. If you are determined and passionate and exercise hard work – you can achieve anything in life.

    We have all the natural resources that we can tap-into. We walk on them, sit on them and often just waste them. In other words we glimpse on money just passing by all the time.

    Why??

    Because we are Too Proud – or – Just afraid to start from the bottom and Ascend on the Stepladder Gradually.

  37. a wise man talks when he has something to say and a fool speaks only because he feels he has to say something. What you are commenting here is out of place, and out of topic. People are complaining that the B+ rating is not translating and you say we are sitting on resources, will the resources we are sitting on reduce the price of fuel or the price of mealie meal or the cost of doing business in zambia??? not even the rating will do that for ordinary zambians, and even if we cultivate whatever resources, with such corrupt, confused and misplaced ministers it will mean nothing. like i said if sata gave everyone K5million more within 90 days, it wont even go far

  38. A senior government official says Zambia will comply with UN resolutions to freeze Libyan funds and assets linked to individuals and entities in Muammar Gaddafi’s inner circle in line with the Security Council resolution.

    The United Nations Security Council has imposed a freeze on assets and funds owned by the Libyan authorities under dictator Gaddafi, and reaffirmed that such assets should be used for the benefit of the Libyan people.

    LAP Green, which bought three quarters of Zamtel last year in a controversial deal criticised by key stakeholders is the investment arm of the Libyan government under Gaddafi who the international community wanted to economically incapacitate owing to his atrocities towards the ordinary Libyans pushing a popular revolution against his 42 year-old…

  39. Pande said a study by the government might reveal that there were many other Libyan investments in the country that could be a target of the asset and funds freeze apart from LAP Green which controversially bought the country’s sole fixed line operator at US$257 million.

    “We have sent the resolution to relevant government authorities and we want this study to be done as quickly as possible because as government, there are many things we are looking at…as some of the assets might be in private hands, or those which we are not aware of,” said Pande without giving the timeframe of the study.

    A fortnight ago, the UN Security Council resolved that member states freeze Libya’s assets.
    South Africa was the first country on the continent to implement the resolution on asset sanctions on…

  40. .
    44#

    I am talking having set examples. Yes, I am in Diaspora working as An Equity & Derivates Trader in an Investment Bank and I have been blessed.

    However, I have invested back home in

    Telecoms || Agriculture || Education || Transportation || Export || IT

    I have 305 people on my Payroll and pay Hundred of Millions of taxes to GRZ. I have 4 Graduates from UNZA on my payroll Team. I just secured a scholar for one of my graduates to do ACCA in the UK and hoping to secure 5 more Scholarships from international partners for my fellow Zambians.

    My dream is to pay for Schools fees for all my employees’ children in the near future.
    Moreover, getting them International Schorlahips from external partners. In other word investing back into the people.

    cont..

  41. .

    44#

    I am not showing off, but trying to inspire others and proclaiming that if you believe and work hard you can achieve anything life.

    I did not come from a rich family or inherit wealth. I started from the bottom with just my education.

    In essence, as an investor, I know what benefits B+ Rating will do for Zambia.

  42. 44 #

    Can you imagine if yourself – did 10 times more what I have done and that multiplied to thousands of people determined to make a difference? How would Zambia look like in the next 10-15 years?

    Yes, there is corruption in every level of government departments and agencies including councils run by the PF Opposition Party.

    However, we must fight the battle We must be creative by filling up the gap left and generate jobs in the Private Sector

  43. no 48 independent observer. you are preaching to people who are dunderheads. the biggest benefit of this rating is that even you as a PF cadre if you get out of your negative state of mind now have an opportunity to borrow internationally because the lender now has a benchmark to measure the risk of lending to a Zambian. in fact this rating will force zambian banks to reduce the cost of borrowing as now zambians and zambian companies can borrow on the international market. More importantly GRZ can also do the same and stop this useless dependence on donors. thats why even an old man like satana has been forced to accept homos because of poverty mindset and thought. guys zambia is able to be the richest country in africa if only our people would change their way of thinking and acting

  44. independent observer you are a breath of fresh air but these buffons who support their fellow buffoon sata will not see sense in what you are saying.

  45. 50# Post/Sata Have No Integrity

    You are the Man. Please keep preaching wisdom. We need chaps like you on LT Blog

    I guess mine is to try and change people mind sets to start looking at life different. If it can help one person then that itself is a difference.

  46. Any patriotic Zambian is glad that Zambia has been granted the B+ status by the rating agency. What this entails is that as a country, we can effectively go on the global money markets and borrow (sell international bonds) for capital projects such as transport networks especially rail lines. Before borrowing this money, government must build extra capacity in our police force to protect the assets such as new rail line. In UK, they have British Transport Police that does a good job. It will be complete waste of time and resources if we do not have a dictated police unit that protects such assets. We have read in the papers where criminals in the copper belt are stealing copper cathodes and it has taken a special police unit in that province to thwart those thefts.

  47. “Who knows himself a braggart,
    Let him fear this; for it will come to pass
    That every braggart will be found an ass.” Shakespeare

  48. It seems this B+ rating is all about borrowing.One question though! is there ever been a time in the history of Zambia when it was denied to borrow or get any loan from anywhere. We had a loan of about $7billion which we couldn pay back,it was written off 5yrs ago and yet we are proud to go back and borrow some more.Are you telling me ther is no any other way we can avoid these loans,isnt there any form of generating money through MAYBE windfall taxes to fund any infrustructure development. personally i wouldnt be proud to go begging or getting loans from banks.Ask some miners who got loans from Barclays a few years ago,they will testify how painfull it is

  49. ***** is all I can say.. you are the chinondo we futa who are benefitting. No one said there is no benefit, but what we are saying is that only the few elite will benefit.
    SO you are saying you have 4 graduates on your payroll…how about the other thousands graduating who will employ them??? who is providing adequate salaries for them to survive and flourish??? and it is not just educated graduates that can even afford to go on internet that are the issue, it is the ordinary zambians. this is the same problem we are having, you people that are making money are forgetting about the ordinery zambians, the gap is growing bigger and bigger between the rich and the poor. ba kaponya are suffering, street kids, small entrepreneurs in villages how about them??

  50. Lets not insult people back home who have no jobs,its not their liking.There are a lot of graduates on the streets,they even go from office to office looking for employment,some people have even resorted to carring placards at traffic lights soliciting for employment and yet someone can come out and say if you are mature enough go look for employment,where,how,do you think if they had a way of getting jobs they would go hungry and just sit at home critisizing mmd,lets not belittle other people.There are a lot of people on this blog who have massive investments back home,work for large corporations,but they wont come out so strong and belittle people who are disadvantaged.

  51. You are preaching innovation only because you know what it has done to your life..we are not talking of our personal lives, we are talking of Zambia as a nation. We dont know the wealth of all the bloggers or of the minsters, the main issue is the rating, will all 13 million zambians be able to access loans because of this rating? no! will my cousins in mkushi buy cheaper pamela and cooking oil because of the rating?? no, and infact all the rating is doing is giving us a tag, the current state of affairs in zambia has just been given a name, thats all. We have been doing business and we know how it works, you are not the only one making money or providing employment but the issue is a a nation including the villages this has not translated

  52. Mealie meal is has been and is still expensive, fuel, electricity, we are making money but it is not easy to save. We have so many expensive obligations, issues which should be affordable, issues which the gov’t must address. the B+ rating wont miraculously cause prices to reduce no. just cause we have evaluated zambia and said it is B+, but why are facts being hidden, the fact that some commodities which shouldn’t be expensive are expensive. How does this even relate to you beginning to brag about your entrepreneurship skills?? it would make more sense if you said you are setting up a capacity to help empower ordinary zambians and give them easier access to certain necessities

  53. abantu bale chula you start saying you have employed and invested and so and so…ma labbish!!! continue in that manner, because you have chosen not to take the advice which is that [email protected]@ls speak only because they want to say something and not because they have something wise or tangible to say. the issues at hand in zambia are very serious and need attention! why do we still only have one refinery? and a mulfunctional one at best, we have so many second hand and new cars yet not even an assembly plant for spares, our government now talks of private partnerships and investors….where is the innovation within gov’t??? the corruption at FRA, I am a farmer myself, and what I faced, I can only imagine poor villagers, others are paid in blankets and only recover their cost

  54. Ive noticed latey,anyone who is critical of mmd is either a kaponya or a dunderhead and yet you read the reasoning behind the same people who call others as kaponyas leaves much to be desired.Some go to Wikipedia,copy some data about the same B ratings, paste them on here and try to come out smart.Come on guys,if these same kaponyas who roam the streets of lusaka had a choice they wouldnt be getting sun tanned everyday trying to hustle up a meal.Seriously speaking,if i had all the inestments some people claim to have here,i would not waste so much time on LT arguing with the so called kaponya,coz i would be very busy running my investments remotely

  55. Gov’t instead of addressing issues they are not taking advice but sending mercenaries to blog rubbish on lusakatimes. Mr Musokotwane is supposed to be in charge of planning but what immediate plans do we have that are addressing the current situation in Zambia which you are claiming is B+??? should independent observers be the only ones having something to brag about? some of us have large families in the villages and it is sad the lives they are living, simple necessities can make large differences, but all we see is chibuku during campaigns. policies are seriously misplaced, this gov’t is seriously not a peoples gov’t, it is a rich mans gov’t, a businessman’s gov’t

  56. Matthew 6:1-34 ESV / 42 helpful votes

    “Beware of practicing your righteousness before other people in order to be seen by them, for then you will have no reward from your Father who is in heaven. “Thus, when you give to the needy, sound no trumpet before you, as the hypocrites do in the synagogues and in the streets, that they may be praised by others. Truly, I say to you, they have received their reward. But when you give to the needy, do not let your left hand know what your right hand is doing, so that your giving may be in secret.
    I wonder how the same people you employ feel about it, they must be very proud that their boss is always on LT letting the world know how they have been saved from the pangs of hunger by a wise man from the diaspora

  57. And No Wonder the WAR between MMD and PF won’t end because every Zambian when they speak, their words are twisted into propaganda for either side. Reading some of the posts, you get surprised how someone with a good point is accused of being a kaponya, or PF or MMD or Tonga. Is it possible in society for one to be a PF or MMD supporter but be against a certain policy within his organisation? If we really cared about our country we can find a better way to discuss issues of development withour preconceptions of party affiliations, we would do away with hatred and find as Zambians a chance to learn from each other and from history!! Whether PF or MMD as zambians our needs must be met

  58. Congratulations Honourable Musokotwane for the achievement, but as a Zambian I’m not satisfied, it is not translating into our lives or the lives of my brothers and sisters in the villages. We need infrastructure, we need industries, we need factories. You are in power and must be able to listen and make something happen. I am not selfish myself, I have some resources, but they will not feed the whole Zambia, they make very little impact on our whole society just like the rating! neither MMD nor PF nor UPND has mentioned opening factories or storing away copper and fuel or building refineries and establishing better realistic policies. ALL WE HERE ARE PROMISES WITHOUT ANYTHING SPECIFIC OR TANGIBLE,

  59. the major political parties in Zambia are letting us down!!! this is why as Zambians we need to find time to set aside political views and propaganda to sit down, discuss and forge ahead with serious developmental plans. And am not talking of this rubbish GIZ executive director. We need to have zambian innovation being promoted, zambian factories, bigger agriculture, education and research sectors! stricter corruption policies and laws. but the current and even prospective crop of leaders have misplaced priorities. Even MMD or PF die hards know that their leaders lack when it comes to innovation and serious policy planning

  60. @ #64 Failure by Ministers

    The credit rating is good because it’ll result in cheaper credit from alternative sources other than the usual World Bank and some nations like China. This means Zambia gets to tap into the international bond markets and might even get a much more favorable interest rate. Something Harvard and Oxford educated economist Dr. Dambisa Moyo advocated for in her Times bestseller book Dead Aid.

    Concerning how this will benefit the people in the rural areas, well till late, what I have read so far is govt plans to issue bonds to raise $500 million USD. This will go in investments in the energy and transport sector. So this is borrowing for capital investments. [tbc

  61. “We have [been] given a B+ rating on the impossibility of failing to honour external obligations,” Dr Musokotwane said…. So there is no need to worry, we can use this rating as ‘collateral’ to continue borrowing, aini Ba Minister? What garbage to be bragging about!

  62. cont from #66

    I’m sure by now, most people have read how investment in energy will double energy’s contribution to GDP in the next 5 years. That is one of the benefits. I’m sure everyone is also familiar with the ongoing rural electrification program. That is one of the benefits that’ll go to the people in the rural areas. There also forecasts that Zambia’s energy demand will increase in the coming years so it is good that govt is planning ahead and investing in energy before it becomes a major impediment to development in the future.

    As for transport, it is good govt is investing in transport infrastructure as this will bring development in the nation.

    As for govt planning for manufacturing, [tbc

  63. 44#

    Better Credit Rating is not only advantageous for government to get better loans from abroad

    a) It also means that Zambia can attract more investors into the country, go into the rural areas and create jobs such as in Agro, which both my and your relatives can benefit from

    b) If Zambia borrows money cheaper, the Banks will also reduce their interest rates, which means that a small famer in the rural areas can borrow money to buy agriculture inputs at a cheaper rate. Thus the benefit.

    c) If a baker that makes bread starts borrowing money from the Banks at a cheaper rate – that is likely to transfer into cheaper price of bread in the in rural areas and have competitive prices.

  64. tiku zibani. the problem with you is that you are too diplomatic and never discuss real issues sincerely! Your stance is always the same come summer come rain, and this is the very problem we are having as Zambians. People want to protect their jobs by promoting everything wrong (some may be right but when its wrong we must be able to say the truth). Mr capitalist each time these pronouncements come out, you don’t even listen to what people are saying or what they are complaining of, instead you defend and defend and explain. We know about the rating, we have known for weeks and what we never knew we have googled and binged! the complaint is that the rating has just evaluated our state of affairs which is that fuel, mealie meal and elctricity are all expensive

  65. cont from #68

    As for govt planning for manufacturing, we are all familiar with the Multi-Facility Economic Zones which will help diversify the economy and bring about economic growth. We are also familiar with the industrial parks currently awaiting implementation. Mr. Mutati has talked about this. All this will create jobs and will grow the economy.

    As for govt planning ahead, I’m sure everyone by now is familiar with the vision 2030. If not, you can download it at the MCTI website and read it for yourselves. From the looks of things, we seem to be ahead of schedule with the vision if you look at it in terms of economic growth.

  66. cont from 69
    .

    44#

    Concerning my example – I have managed to take 4 UNZA Graduates and many more from the streets that could not find jobs for an average of 3 years. Therefore, it is not about how much money one has in Diaspora but rather my message is to encourage every Zambian back home and abroad to come out from the box and be creative in order to grow the Private Sector + Jobs

    By the way! As I have said in comments 47# I have empowered 305 people by giving them jobs and training. Plus – now providing Scholarships to further their knowledge in the UK.

  67. talema na propaganda…and kindly stop schooling us cause we know what the rating means, what we are saying is that the situation on the ground is not good and these economic statistics arent helping! the only thing you and independent observer are now doing by making your propaganda pronouncements is exposing your gov’t which is also our gov’t (I am a true blue myself), because if you say such ratings will lead to capital investments, well hasnt the economy been performing well for some time now? but we are in this situation where commodities are so expensive, how do we trust that now we have been rated things will change, the question we have been asking over and over is what plans are there, you dont just say capital investments..what investments have been planned??

  68. this is the same song all politicians sing be it HH or Sata that they will bring development. you say the rating will now mean investment and foreigners coming. Our question and our problem is that this is not the first time the zambian economy is doing well under MMD, but are these things really translating to ordinary zambians? no they are not, even when there was a bumper harvest we couldnt sell our maize even to FRA because they were squeezing everyone to a point where you either sell to recover your cost or you let the crops rot! We posed a question to the minister that is he proud of the current state of affairs in Zambia? and can he live with himself after explaining to us why necessities are so expensive??

  69. #32 thanks for the interpretation of rating grades. BB rating is a junk grade and no one wona be interested to invest in Zambia. So whats the Minister boasting about? Onlya fool can be happy with a BB rating. Its not an investment grade buta gambling grade. People can jsut gamble to lend money to a company based in Zed. So bros its not gona be easy for Zambia to get credit from abroad! Musokotwane should have humbled himself and promise to work harder in the next three years to ensure that Zambia gets a rating of grade A or better! Its a shame to disguise lies and taking advantage of people’s ignorance to spread propaganda for the govt in power!! Zambia is unique and it does not help to compare or console ourselves for our poor performance just because Ghana, Angola and kenya gotsame…

  70. @ #73

    I never said the rating will result in capital investments. I said the rating will result in cheaper credit.

    I have already told you the plans (that I know of) that govt has but you are viewing it as “propaganda” so the problem is with you and not me.

  71. ONE QUESTION! was Zambia ever refused to borrow before we had this B+ rating! Just after the $7billion debt was written off, Zambia was able to borrow again,thats how come Zambia debt is almost $2billion in the last 5yrs.Tell us something we dont know pls

  72. this is a simple but very serious issue…it seems like you are happy to live with the current state of affairs, to go about your business making money and spending excessively, but those of us who care for others are not happy!! gov’t has claimed to have taken many steps forward and taken various measures to improve livelihood, the rating is not the first good to come out of economic plicies and if you have noticed no one has said the rating isnt good, even PF is saying the rating is ok but so what. Which means they know its good, but we all know the truth and you diplomats need to come out and be truthful, in any scientific thesis you have to give your conclusion…are you two concluding that the prices of necessities is a good thing in Zambia?

  73. @ #78 Smoothcriminal

    There is a difference between that borrowing and the borrowing the rating will bring. For example, some of that debt was from organizations like the IMF and World bank who attach conditions. Secondly the interest rate may not be favorable.

    Borrowing from the international bond market will mean, Zambia can borrow at its own terms and may borrow at a lower interest rate.

    It is not about Zambia never being denied credit, it is about which credit is cheaper.

  74. B+ rating to translate into cheaper credit,thats not true. whatever conditions the government gets from creditors/loan shacks is kept to tehmselves,no one can claim to say that Zambia is going to get cheaper credit,whatever this means.lets not speculate,lets be open minded and debate with facts not innuendos

  75. thankyou for coming out and saying you have said gov’ts plans that you know of, and thank you for not continuing to defend what is wrong in our society! it is everywhere, MMD, PF, UPND, NAREP. when something is wrong it is wrong, serious countries even call a panel to resolve fuel shortages and high prices. Zambia has been watching this situation for how long now, BP and Shell’s top suppliers are in Africa, but why is fuel so much more expensive for Zambia than for all western countries? it is all planning, BP has over the last years been selling oil it bought long time ago below $48 a barrow and they were selling at over $100 a barrow whilst making very few purchases frustrating the market. Zambia has no stores of oil and only one refinery

  76. # 60

    You comments in 60# will not help you at all. I can see you are now getting fired up for strong language.
    Dont loose yourself and think using emotions.

    Question!

    1. What is wrong with someone creating 305 jobs amd taking people from the streets and pay them an average of K3.5m per month

    2. What is wrong with someone that donates an average of K50m per year to Orphange Centres every year helping the poor.

  77. @ #81 Smoothcriminal

    Ghana has a B+ rating and they managed to raise $1 billion USD in the international bond markets. That essentially means they skipped China, IMF, World Bank to go to the bond markets. Why would they do that if it wasn’t with less “conditions” and cheaper credit?

    Dr. Musokotwane, Dr. Fundanga, Dr. Dambisa Moyo have all advocated for a sovereign credit rating. Why would they advocate for this if it wasn’t a good idea??

  78. Capitalist
    When you are going to borrow money from a bank you dont go with your own terms, inspite of your credit rating,the bank/loan shack will give you his terms and its up to ypu to accept or deny,point of correction…Interest rates are dependent upon how quick you can pay back your loan to avoid paying more thats all.You and i are not privy to any loan conditions given to a country like zambia,so lets not go into those details baba.Lets be honest for onceNo one should be proud of nkongole

  79. The rating will bring us more credit, but what plans are underway to solve current problems and what plans are there for future sustainability or in this case survival. Our grandchildren will suffer at this rate because they’ll have this congole, they wont have copper as it will have been all dug out and they wont have any serious factories or industries. the current govt hasnt seriously invested in research and agriculture. The chinese, and you cant blame them, will run away from zambia once copper is finished…the ones investing will go and we’ll only have those infesting

  80. Even without a B rating,any country can go into the international bonds market, these ratings are not conditions for a country not to go into certain business ventures,its just a credit rating,just like any individual can have a credit rating

  81. 78# Smoothcriminal

    What would prefer on the following;

    1. World Bank Loan – Borrow $150m at the rate of 13% Apr/Year from Wol
    2. European Bank Loan – Borrow $150m at the rate of 6.3% Apr/Year

    If you wanted to buy a house would you choose

    Zanaco Loan of K300m at the rate of 7.5% Per Annum
    Barclays Loan of K300 at the rate of 11.5% Per Annum

  82. @ #85 Smoothcriminal

    OK, Let me rephrase it, Zambia will be borrowing by selling bonds and investors have the option of either buying those bonds or not. So if Zambia is issuing $500 million USD worth of bonds, this will be cut up in pieces and sold to investors. So I doubt every investor who will buy these bonds will attach their own conditions on Zambia.

    It is either they invest or not.

  83. #83
    I see in almost all your blogs you use a lot of superlatives trying to put across your point,quoting figures and all,sorry i wont go into a debate with you,i find that kind of thinking quiet low.I have my own investments and i work for a big mining company and quiet happy with what i earn but i wont go into details.I know your kind,please lets drop it.I’ve put my point across loud and clear.Nothing wrong with what you are doing,though i wouldnt blow my trumpet (oppinion)

  84. What do Zambians rate themselves? Foreigners can rate us into anything because it is in their interest to continue with the policies that are based on the status quo. How many villagers are going to have clean water and electricity with this rating? As far as I am concerned, this rating is simply to appease those with money and intentions to borrow more in order to further entrap Zambians.

  85. we have debated but it seems we are debating different issues. you felt the need to defend gov’t, i felt the need to express my displeasure at the casual manner in which some sectors in our govt and country are being run and made to look as though they are positively affecting every jim and jack… please dont bring in Moyo because many of us have reservations towards her views. that is a debate for a different topic.
    as for observer you are really off topic, what does B+ rating have to do with you asking questions related to the number of employees you have or the donations you make? there are humble ones that don’t speak and yet they too do fine maybe even better than you.
    economics has its benefits, but a gov’t shouldn’t turn be based on economics, it should be about the people

  86. @ #87 Smoothcriminal

    You’re probably right. Any country can go to the international bond markets without a credit rating but they’ll have a hard time raising capital especially if this country is African. The credit rating helps assess risk. Investors use this rating to tell them how risky the investment is or not.

  87. The essence of credit rating is to attract and promote economic growth. It is somewhat an indicator to gauge the stability of a country. If Zambia gets gradee A or AA or better, the country stands a better chance to attract meaning investments froms serious companies. .Why? Because, companies with basis in Zambia, if thet rating is AA or better, will be able to borrow money at lower interest rates abroad. In Zambia, interest rates are sky high! As it is grade BB is harzadous and nothing to talk about! A country in category BB is fraught with economic and political instability and more likely to default. Zambia should do and aspire for some more to get A grade rating like Botswana!! Bb is a non starter, hard times for zambia!!

  88. After all is said and undone, getting a rating is a step in the right direction. However, what is important is to have a well thought plan on how the attainment of the rating will be utilised to improve economic performance and get even better ratings that would facilitate securing cheaper finance as well as the issuance of soveriegn bonds at lower cost.

  89. #88
    Those figures you are quoting have got nothing to do with the B rating,same goes with you Capitalist,bonds and investments have got nothing to do with this B rating.We’ve had investors coming inot Zambia even before we had this rating.Zambia has been borrowing even before we had this rating.Can you give me verifiable evidence to say that because of this rating,Zambia will get better interest rates on its borrowings

  90. @ #92

    No I felt the need to share my knowledge on what I know about credit ratings since I noticed there was a lot of misinformation on this thread.

  91. #95 corrected. The essence of credit rating is to attract investments and promote economic growth. It is somewhat an indicator to gauge the economic and fnancial vulnerability of a country. If Zambia gets grade A or AA or better, the country stands a better chance to attract meaning investments froms serious companies. .Why? Because, companies with basis in Zambia, if thet rating is AA or better, will be able to borrow money at lower interest rates abroad. In Zambia, interest rates are sky high! As it is grade BB is harzadous and nothing to talk about! A country in category BB is fraught with economic and political instability and more likely to default. Zambia should do and aspire for some more to get A grade rating like Botswana!! Bb is a non starter, hard times for zambia!!

  92. we have understood borrowing and doing so at a lesser fee, but even our govt policy shouldnt just rely on borrowing. and even that borrowing what is it targeted at? there is serious lack of innovation in our gov’t, and there is too much propaganda and diplomacy. we need people that are creative, innovative, ambitious and are ready to call a things what they are. developmental issues need to be taken seriously not as campaign strategies or ways of pleasing certain protesting groups. most of the key structures in zambia you will notice are from long ago, there has been very little tangible investment in research and infrastructure recently. even most of zesco’s equipment is so old and neglected

  93. @ #97 Smoothcriminal

    I have now seen that you don’t know what you are talking about. As for Independent Observer, he works in this field and therefore knows exactly what he is talking about. I end here because I have seen there is no point debating you on this issue.

  94. Capitalist
    At the moment Africa and Zambia in particular is dealing with China.This is a country which does not look at such things as credit ratings,they will give loans to any government that will accomodate them.No conditions attached.If we can get loans from china,whats the fuss about getting all these ratings.You are the same people who have demonised World Bank and today you say we can go to them and borrow at cheaper rates
    By the way what do you mean cheaper credit (dont tell me its a loan with low interest rate)

  95. 101#

    I quote your comments on 101#

    ” we need people that are creative, innovative, ambitious and are ready to call a things what they are”
    ————————————————————————————————————————————————

    Basically, this is the stance some of us have taken by being creative and ambitious. I would encourage you to take that lead by being creative and become an Entrepreneur that will employ thousands of people from the streets of Zambia.

    This is how Zambia will move forward.

  96. Capitalist
    Please educate me;what is it that i dont know,what has made you come to that conclusion.Ive asked questions and at one point you even accepted and agreed with me on the point of International bond market @ #93. Please eductae me

  97. smooth criminal keep dreaming you will never have the wealth we have because you are a lazy bum who is too lazy to see anything good about Zambia. just continue doing your cleaning or macdonalds jobs. Zambia can be better than it is. So is it the job of government to feed all zambians?? come on chaps even the UK when S and P threatened to remove its triple A rating they pleaded and now are cutting spending in order to reduce the deficit because of all the lazy bums they have in london who rely on welfare. is this what you want for zambia. the borrowing you talk about was what built all the universities and roads and other infratsructure you see in Zambia. what we need is more zambians willing to invest in their own country rather than be satisfied in buying a house on mortgage in Uk

  98. no 87 you lie. without a sovereign credit rating no one will buy govt bonds on international market. they would be junk bonds!! smooth criminal you are a big liar just like Satana

  99. Capitalist
    You guys claim to work in this field; these ratings are internationally recognised,why dont you give us a link to a site or a scholarly journal that specifies the conditions attached and benefits that a country will enjoy after being given this rating.All you have been giving us here are just your oppinions. No one has come up with any facts backed up with well researched scholarly journal articles in support of your claims

  100. @ #106 Smoothcriminal

    How do you expect me to debate you when you make this statement, “,bonds and investments have got nothing to do with this B rating” end quote. You have also proven to me that you have not been paying attention to what I have been saying with these statements, “Zambia has been borrowing even before we had this rating” end quote.

    My advice to you is, you have the internet. Go do some research and then come back and make an informed opinion. Maybe we can continue it from there. As of now, I do not have the patience.

  101. #107 Post/Sata Have not integrity
    You have found it wise to call me bum just because im trying to understand what the B+ rating means.How i wish you could just explain to me in a civil way than to call me a bum
    I dont work for Mcdonalds,neither do i do any cleaning jobs.You sound quiet upset,whatever it is that has upset you,im not part of it.Sorry

  102. Capitalist
    When did we get this Rating,hasnt Zambia been having investors before we had this Rating,hasnt Zambia been dealing in bonds before we had this rating.You dont know the conditions or the interest rates that Zambia has been borrowing at.You dont have these facts for you to make comparisons with the status quo

  103. just read an UNCTAD report titled ‘CREDIT RATING AGENCIES AND THEIR POTENTIAL IMPACT ON DEVELOPING COUNTRIES’ its available online

    there is also a report by standard and poors done in 2007 which answers frequently asked questions about sovereign credit ratings. when you read come back and debate with knowledge and information not just your emotions

  104. zambia has never issued a bond on international markets. it sells kwacha government bonds on the local market and then these bonds are traded on the LUSE.

  105. Zambia, Africa’s biggest copper producer, obtained a credit rating from Fitch Ratings as it plans to sell its first dollar-denominated bonds this year.

    The southern African nation was rated B+ by Fitch, its fourth-highest non-investment grade rating, with a “stable” outlook, the company said in a statement today. Zambia’s rating is the same as that for Ghana, Kenya and Angola and one step above Lebanon’s.

    The rating reflects “the marked improvement in Zambia’s economic performance since 2003, driven by improved macroeconomic stability, economic liberalization, rising private investment and production in the mining sector, and more recently, a strong agricultural performance,” Veronica Kalema, a director in Fitch’s sovereign group, said in the statement.

  106. 90# Smoothcriminal

    My figures were just an example to show that Zambia is better off borrowing money from cheaper sources That itself, would benefit Zambia in the long term. That is just the fact.

    You are not here to enjoy my comments and there is nothing superlatives about views

    In the mean time, I will continue to inspire other Zambians to reach the sky. We all in this together to develop our country and we need to work collectively

    I will continue to share ideas and connect those Zambians to Emerging Markets Venture Capitalist from Europe & USA.

    Cont…

  107. Im out of here, now we have people copying and pasting stuff from google,im after scholarly journals or articles not google DAIMN!!!

  108. cont.. from 116

    As for my job, yes it has given me access to Global Markets in Americas, Europe, Asian Pacific and Africa and will keep giving back to Zambia

    Frankly speaking I am not sharing anything positive or making headway with you on this debate.
    I will leave you to chat with others.

    Enjoy the day & God Bless

  109. Please let these Mutombetwane help us to understand the criteria they use to rate zambia.Then we cab debate wether the rating is genuine or not because it is becoming political now.

  110. But what is this all about. Who takes pleasure in being ranked a good borrower. To me it does not make sense at all. Its just a sheer waste of time. If i may ask – how many people will feed on B+ nonsense!

  111. ” Dr Musokotwane said Zambia’s economic growth translates into an increase in the country’s capacity to borrow internationally and locally. ”

    Well neoliberals are in love with debt. There is one problem, dr. Musokotwane, who is going to pay the interest? Because there is a completely interest free resource you refuse to access – taxation of the mining industry.

    So who is going to take on the unnecessary interest that we are supposed to pay? That would be ordinary workers, wouldn’t it, through a devaluation of the Kwacha, or through increased income tax.

  112. INDEPENDENT OBSERVER – You are an encouragement and motivator. I have seen that a lot of people are now copying your Blog Name. It means they envy you and respect your comments, so thy immitate your name they get attention by proxy.
    Others think that you are showing off. You just trying to share your story to help others reach for high goals. I can see Ba Kaponya will try all the time to start a fight. Even when they call you names you never answer back and hsut show your steadfast.
    A person that does business and goes out to inspire others to better themselves and help the poor is well again than someone that is a businessperson and keeps quiet to himself and waste money on material things.

  113. no 122 I agree with you. Smooth criminal what scholarly articles are you talking about? you would never even understand such. you have just failed to articualte your views. google mind you is only a search engine and does not publish nor write articles. it shows how shallow you are in your thinking because even those scholalrly articles you talk about can only be found on google which then directs one to the actual website. the UNCTAD report is a proper analysis done in 2008 as part of the UN’s support programme for African countries to get sovereign credit ratings. every country worth its salt has a sovereign credit rating, so Zambia has joined this group of nations

  114. This is good news. That is why I implore sensible Zambians to either give MMD/RB another term or vote for change through UPND/HH if at all you are tired of MMD. Don’t ever made the mistake of voting for Michael Gaddaffi Sata, you will live to regret it!!!

  115. 124 Zed Patriot,

    ” This is good news. That is why I implore sensible Zambians to either give MMD/RB another term ”

    None of the improvements in the economy are the doing of the MMD, they result from record high copper prices, which the MMD refuses to make full use of.

    We shouldn’t for a second celebrate that we can not get deeper into debt. Instead, we should be angry about the fact that billions of dollars are leaving the country untaxes. Also, in true neoliberal style, the MMD did not reduce taxation in Zambia, they simply shifted the tax burden from the corporations to the workers (PAYE).

    This nonsense has to end, and these MMD fools don’t know or don’t care that there is not a lot of time to act.

    There will be a time when all the ‘Donor Aid’ is issued in…

  116. There will be a time when all the ‘Donor Aid’ is issued in worthless currency. There is so much economic dislocation coming down the pike that it will make all these economic theorists look like complete fools.

    The US dollar and even the Euro are being massively debased, and the only economies that will thrive are the ones who have internal markets for the real world goods they produce.

    When an economy like the US’s is in a weak state as it is today, it only takes one shock or disaster to push it over. Zambia is back to scratch if the copper price goes back to historic levels. So we don’t have the luxury to wait for next year, or 5 years from now.

  117. Instead of listening to these dozy eyed neoliberal sheep like our current finance minister, go to youtube /com, and check out:

    Max Keiser (the keiser report – on Russia Today)
    Nouriel Rubini
    Nassim Taleb

    We don’t have time for a 5 year wait until the mines start to pay taxes. We have to convert mining profits into productive assets like farms, factories, and also upgrade infrastructure, and provide basic services today.

  118. AAA, AA+, AA, AA-, A+, A, A-, BBB+, BBB, BBB-, BB+, BB, BB-, B+
    Do not be fooled! This is by no means a good rating, it is classed as “highly speculative”, a notch better than “substantial risks”.

    Any investor lending money or buying our debt will expect higher than normal returns, hence high interest rates.

    Having said that, obtaining a credit rating is a step in the right direction. The challenge is maintaining payments once we have borrowed. Let us not get trapped by debt again.

  119. I am Pro MMD. I can accept HH going into Sate House and not Sata. Kaponya’s all they want is a fight every day. Honestly, how can we move forward.

    I am can see where (MR. CAPITALIST – 3 E’S STEERING ECONOMIC GROWTH) & (INDEPENDENT OBSERVER) are coming from. They base their arguments with good reasoning. Zambia please do not allow these thugs to State House.

  120. mr. k do you believe that sata will do those things you talk about let alone understand what you are saying??? thats why zed patriot is saying if you dont want MMD better to go for HH/UPND than to go for an old relic in sata. further you make very wild statements about the world economy. china is now the second biggest economy in the world but without the US market it would fall very badly and also without Africa’s resources it would not be able to manufacture what it exports. in fact china is now facing a classic case of now trying to boost domestic demand. taxing the mines is not the only answer to our problems in zambia, it is one of a number of key factors but not the only one. we need pragmatic and sensible policies not sensationalism about taxes. every country has to find a balance

  121. Independent 118 and Simon Says 129, thank you for your comments. Going Forward, GRZ should take a leaf from Dr Kaunda who had a specialised information ministry that would educate the ordinary citizens on complicated philosophies.
    For the rest of us after Zambia and most of sub -sahara africa, Latin America and Asia over borrowed in the 70’s leading to 80’s , the World Bank effectively became the Central Bank of these countries. It meant you could not borrow USD1 even on the Black market. Zimbabwe is an example of trying to go it alone. TRUST ME Big Brother has been watching.

  122. 131 Post/Sata,

    ” thats why zed patriot is saying if you dont want MMD better to go for HH/UPND than to go for an old relic in sata. ”

    The UPND are also neoliberals, just like the MMD. Also, they have no appeal outside of Southern Province.

    So unless there is an Egyptian style Tahrir revolution, Sata and the PF are the only way forward.

    I think the UPND should just dissolve itself and join the PF. Zambia already has a neoliberal party.

  123. For some people positive thinking is a dog’s horn. Their bible is the Post, they would rather escort the Post, mmembe and malupenga to the bank rather than think of their own lot and how to improve it. These are the people whom poverty shall never escape, because poverty thrives in negative minds.

  124. #125 MrK

    I have followed the debate above and anybody who understands economics will agree with the well thought contributions made by INDEPENDENT OBSERVER & Mr. Capitalist – 3 E’s steering economic growth. I am suprised you still want to argue against them. It difficult for me to understand your obsession with Sata because apart from opposing any gov policy to gain him political mileage he has no defined economic or political philosophy. Depending on the audience he is addressing he flip flops from extreme capitlism to extreme socialism.
    On UPND: yes they control Southern province at the moment but this will change after the next elections. The party is gaining momentum and you will be surprised that it will be PF that will lose territory this time.

  125. #67 Capitalist for once I agree with your posting. I totally disagree with your political stand point but on the rating and access to cheaper credit there I agree with you.

  126. This information is rather technical and has little meaning for ordinary Zambians. What people are most interested in is to know if the well-being of the people is improving and if Zambians are better off than yesterday.

  127. Basic economics indicate that borrowing will affect the GDP per capita of citizens becuase a portion of it will be used to service the external debt. How doe this theoretical economist fail to continue fom where Magande left from? Your are even showing us silly adverts on ZNBC about development kwati mulewamya you silly chaps. Guys are you aware that we are overtaxed and on top of that that our future generation may end up suffering for the debt that is being createalant Magande and Levy worked hard to help us reach HIPC.We chipubawe musokotwane.Kanshi ipala te wisdom. Ukutemwa ama theories. B+++ my foot. Ifyabupuba.No wonder you dont want to reintroduce widfall tax in the mines.

  128. BAFIKAMBA YOU THINK YOU ARE CLEVER KA. SITUMBEKO IS THE WORST MINISTER ZAMBIA HAS EVER HAD. FUNDANGA IS NOW THE WORST GOVERNOR OF BANK OF ZAMBIA AFTER HE TURNED INTO A PART CADRE. AMAPALA TE WISDOM KA. UKUJOBESHA NAKO KULALUSHA UBUPUBA. A BALANCE IN FISCAL AND MONETARY POLICY IS NEEDED TO STEER DEVELOPMENT. UKUTEMWA KALOBA CHI MUSOKOTWANE. VERY SOON WE SHALL HEAR OF VULTURE FUND. VOTE WISELY GUYS.

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