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Zambia does not need Eurobond-HH

By editor
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Hakainde Hichilema
Hakainde Hichilema

UPND leader Hakainde Hichilema has condemned government’s decision to borrow USD 750 million Eurobond.

Mr. Hichilema stated that there is nothing for the PF government to be excited about following the successful issuance of the bond.

He said Zambia does not need to borrow from private lenders adding that the PF government could have generated more than USD 1 billion from the mining windfall tax in two fiscal years.

“In one fiscal year, Mwanawasa raised over USD 400 million, with today’s copper price, Zambia could raise over USD 600 million from the windfall and the increased mineral loyalty taxes and that is close to the USD 750 million they are singing about,” Mr. Hichilema said.  [pullquote]“In one fiscal year, Mwanawasa raised over USD 400 million, with today’s copper price, Zambia could raise over USD 600 million from the windfall and the increased mineral loyalty taxes and that is close to the USD 750 million they are singing about,” Mr. Hichilema said.[/pullquote]

Mr. Hichilema advised the government to explore other prudent ways of mobilizing capital for infrastructural projects than rushing to the Euro market.

He warned that Zambia will quickly get into a debt trap which will negate all the gains the country has made following the HIPC debt relief.

Mr. Hichilema also cautioned PF leaders against reckless borrowing and mortgaging the future of the country.

editor
editorhttp://www.lusakatimes.com

228 COMMENTS

    • FLASH FORWARD, 2013 PF BUDGET:
      – PF INTRODUCES WINDFALL TAX ON MINES.

      – FOLLOWING DAY ZAMBIAN WATCHDOG & LUSAKA TIMES HEADLINES:
      “HH CONDEMNS THE PF GOVERNMENT OF CHASING INVESTORS THROUGH WINDFALL TAX AND FURTHER SAYS THE GOVERNMENT HAS NO IDEA OF RUNNING THE ECONOMY”
      [-(

  2. Ba HH, that is where you get it wrong, you want to criticise everything. This Euro Bond was started by the MMd and you never raised a finger against, it. Recently, you and your supporters were alleging that the Euro Bond has failed through because of policy inconsistencies and not that it has gone though, you come up with that bizzare argument??

    It is not only Zambia but countries like Ghana, Senegal and others have gone to capital markets to raise investment funds, what is your problem, find something to commend!!

    • TELL HIM,HE THINKS EVERYTHING IS TO CRITICISE…WHAT SORT OF A PERSON IS THIS…HOPELES HULE,HH.WITH HIS KA PART JUST SLEEPING WITH ANY POLITICAL PART SO LONG ITS IN ZAMBIA..

    • If Ghana and Senegal gets it wrong, should Zambia do the same? There is nothing good about borrowing my man. You guys must be retards.

    • No wonder we are poor, since when did borrowing become a praise worthy thing. And since when did Ghana and Senegal become our trendsetters. Lets get serious as Zambians please…I do not support HH but on this one I am will him. You say MMD and RB started this, isnt it the reason Zambians voted for a change of govt, is this surely the change people hoped for??? More borrowing????

    • Guys why are we behind like that.so you like our country to be borrowing money.HH is ok am with you HH,guy why are we poor in thinking as if we are not educated.Ithink this CNP government all are g7 even ther supporters.

  5. That is timely advice and it is coming from an economic manager. This money will be looted by Mumembe, Nchito, Sata, Great Bag of Maize (GBM). By the time we as Zambians realese Mumembe and Nchito would v borrowed 18billion kwacha of the eurobonds. Check the space and HH educate these Grairtics on how the economy is run. I admire you greatly!

  6. With the lies that that come out of HH’s mouth, I can only comment after verifying what he is saying about the money Mwanawasa raised. Better safe than sorry.

  8. I expected this from HH. In a way, he has a point. What is important now is how the money is used so that it can repay itself. Obviuosly, whatever money we are raising as a country is inadequate hence the bond. It is not the only money the government will have for their budget but a supplement. Good thing we can be considered credit worthy!!

    • Which point does HH have? He has NONE! And this is my deep disappointment with him. He has no ideas except to criticize. This is what I think: Zambia needs funds from every possible source, including mining taxes and issuance of bonds. This is how developed countries manage their economies. The Germans, for instance, are not only about exports, but also have bonds -government borrows. The case of the USA is even more clearer. Disappointing that HH is thinking linearly.

  9. Whats the problem with this under 5 chap aiii??? With him,everything that the government does is wrong!! Give us solutions to everything that you say is wrong not ukula bwata bwata fyeeeee…….u chap!!

    • can you read fool?? what was that he said about windfil taxes? that the government could have raised that cash within 2 fiscal years through mining taxes? Think before you bwata bwata chibwi

    • Typical zed blogger, even when you have tools such as spellchecker at your fingertips, you are STILL TOO DULL TO USE THEM!! Others revel in their ignorance, proudly claiming English is not their mother tongue – perhaps we should proudly live in caves!! – IT’S AN INSULT TO ONES EDUCATION!! Perhaps no surprise with the levels of illiteracy in the country today!!

  14. I only hope the money borrowed we be put in good use. We have seen funds misused by corrupt leaders like Chungu was never even returned the money he stole.

  15. Tell them,Mwanawasa fought hard to have the Debt of 7 billion US dollars to be atleast reduced to 2 Billion US Dollars.why getting into debts again when there other options as suggested by President HH?

    • It was not Mwanawas who fought for the debt cancellation but the Catholic Church much as you not like it my brother. This does not mean that Levy was not a good leader but facts are facts irrespective of who did it fellow Zambain.

    • people I feel it good to get facts right, I agree the catholic church did contribute to consolation of the debt but the onus was on Mwanawasas’ government and all Zambians who endured wadge freeze did alot when it come to maintain good physical finacial discipline which MMD failed to do under FTJ for the country to meet HIPC completion point. If you care you can Google all this information is there.

  16. I saw it coming.This guy just opposes everything aslong it has something to do with Pf,What a fool-ish trait for a man who aspires to be the leader of the nation..smh

  18. For the first time I have heard this man put an arguement accross and support it with what he thinks would be a better alternative. A refreshing diversion from his usuall fault finding and offering of no solution. Now this is the sort of opposition we want, not just opposing for the sake of it.

    • I agree. He could have even put it differently like: Government has done well to limit the borrowing to 750m; but they just have to increase the windfall tax. King of sandwiched reaction; good, bad, and good.

  19. HH could be right but if a crocdile gave me advice about the river I would not take no matter how nice it sounded. That advice might be to get me into the water so that I can be eaten. This is also coming from someone who have for past year been opposing everything. It is not possible for any gorverment to do everything wrong. Next he will be talking about regulation of drinking beer time that it is wrong.

  20. Malasa, @11, I guess you meant to write “geriatrics”. Be that as it may, just remember that time is not standing still for you. If you are young and healthy today, give thanks to God, but also remember that old age will come to you too – that is if you live your life wisely!

  21. My bottom line conclusion is that HH is a mad man. From now onwards i will call him MM instead of HH. MM means mad man. Why call him MM. He is contradicting his mind. Just yesterday, he is on record condemning PF that they will lose the Euro bond and when they get it, it is a bad thing. Indeed kano nganibo. MM, you have totally confused me now. Initiially i thought there was a shred of truth in him but now i agree that he is bent on making PF finding it difficult to Govern. Dont forget that PF know that you are making things difficult for nothing hence the treatment you are receiving from the Govt. PF cannoot afford to play around with someone who has no agenda for ZAMBIA APART FROM CONFUSION. SHA.

  22. I find a lot of bloggers on this site as being useless contributors. Why get excited about borrowed money. The AG’s report states the more than 4 trillion kwacha is lot through corrupt practices. The mines in Zambia are enjoying a lot of tax benefits. The same mine owners pay higher taxes with carbon tax and the like in other countries. Zambia can do without borrowing. Hate him or not, HH has a valid point.

    • *****. Don’t you see people excited when their loan is approved? Not because they love debt but the can get hold of the cash they desperately need, perhaps to buy a house. good investment even when paying back you know. So they are excited coz they have great plans, and I mean great plans for infrastructure development including kafue Gorge. arent we all tired of loadshedding? there you have it and you still call him CNP!!! man of action!!! Go go go. show these pigs… what great plans you have for this nation. Even petrol reduction you dont appreciate, still call him CNP!!!! |lwenu

  23. Hakainde Hichilema is talking sense here but one thing he fails to point out is that loan has a reasonable interest rate which is backed by our strong fundamentals, which includes strong GDP growth of around 6% over the past decade, low levels of debt & the govt’s prudent macroeconomic mg’t; the onus is on this gov’t to invest it infrastructural development and this is where Hakainde should direct his energies by keeping these guys in gov’t honest at the same time continue striving for the introduction of windfall tax.
    Investing in ZRL and lower Kariba will lead to reduced costs of production to the mines which will in turn lead to increased copper productivity for them: then we will be even in a better position to push forward with increased taxation on them. 

    • \And he’s supposed to be a great economist but the grade 4 drop out is beating him to the economics. he he he he he he he he he hehe

    • You have a point but the mines are not suffering under the cost of business. To the contrary actually. The metals market is and has been high for the last couple of years while tax revenue from this sector hasn’t grown correspondingly. Considering the state of instability of the global economy and how dependent our growth is on it, accruing external debt (which is a long term commitment) shouldn’t be top of our list of strategies. I agree, not all is lost PROVIDED the $750m is put to productive use

  24. Every meaningful Zambian especially pf should be thankfull to HH, he is not just opposing pf but he has also given pf a solution. Thanks Chief hh.

  25. This scumbag never ceases to amaze me, if GRZ had rejected this eurobond the scumbag would condermed pf for that. He now has nothing to do but fish for issues to comment on to show his relevance to zambian politics.
    Someone says heed advice from the economic manager, wonder which company can ve this scumbag as manager. Only in FTJ’s corrupt privitisation process.

  27. @ MALASA, economic manager HH has never prisided as a CEO of any organisation but UPND President ever and in his dubious companies from the ZPA where he was a deputy to Valentine. Get your facts rights before you make your contributions my brother.

  28. Thanks HH for this one, its just a pity that tha CNP government have a low IQ & its actually difficult for them to understant you arguement. HH understands investment very well looking at his persoanal achievements in this venture, so Pf listen!
    If Zambians are not careful Sata will soon take back Zambia in the huge debt crisis just like the time of Chiluba. As Zambians we should refuse to be taken back to the MMD of Chiluba which Sata is very capable of doing bcoz he was part of the debt mess, its just that Zambians forget easily. Otherwise, thumbs up HH.

  29. Zambians are like turkeys cheering for xmas to come….

    HH is saying why borrow when you can generate your own money?

  30. HH you are such a fool. Not too long ago, you were lamenting that the PF has failed to sell the Euro-bond because of the bad Governance, intolerance, dictatorship tendencies and other stupid issues you raised through your Watchdog paper and other media such as QFm, what really is your problem with Sata being the President of Zambia? You are just as bad if anything. Give the Sata time and space to govern with peace coz as at now, the Zambian people who voted for him are enjoying their President, so are some opposition MPz even from your own party. Go to hell man!!!!!

    • I really don’t think read papers. UPND or HH never commented on failing to sell the bond. As an opposition party, they did they most wise thing, wait for an outcome and hammer them. You must be an ignorant dumb wit 

  31. HH is Zambia’s only hope. He criticises and offers solution.. bane even if we dont like this under 5..i guess this is constructive critisism. PF please listen.

    • kekekekeke hope for whatt!!! u must be a nephew or something? u wish to be in state house i can assure you chipimo is the hope for zambia not that marubbish cow dung!

    • @chalo bantu- I said it in one of my submissions that all of a sudden people with northern connection will bring up Chipimo who I have nothing against. But if we classify HH as under 5 Chipimo must be fetus

  32. HH & Zambians give Sata the BROOM that is the job he knows to do better, not economics, the records at Victoria Station in the UK can testify. Give Sata the BROOM, period! Otherwise, Sata has been the worst liabilty to Zambia ever since independence. HH we appreciate your responce on this move by the pf CNP. Viva political revolution in Zambia.

  33. I do see sense in what he has put across. We have mineral wealth alright but we are unable to get from it what it is worth to sustain Zambia. If you don’t know how much you are going to earn in future, why should you go and borrow money? It sure does not make sense. What are our well learned Economists telling the president? I bet they are not telling him the truth. Let’s put a stop to this kind of decision making. One Zambia One Nation.

    • HH is playing to the gallery and preaching to the choir-windfall tax when copper is at $7500 per ton coupled with the new royalties would cripple the mines.Mwanawasas windfall tax was when copper was at $10 000 per ton

  34. @ The Engineer (Australia) , please base your contribulations on tangible real issues my brother. HH mean wel except that wind fall could either be a rational solution or irrational depending on the global demand for copper, however borrowing is good if and only where the money can be put to good use by inversting in real projects which in turn can spar tangible macro-economical emancipation by building the much needed economic base-line.Borrowing for consumption should not in any way be entertained at all cost.

  35. Even though HH is an under 5, i think his logic is better than the over 5’s (Sata). All the Over 5 can do since becoming president in 2011 is renaming of airports, creating gost districts, hiring & firing people from one region, moving districts to other provinces, Intimidating HH & UPND using the police force, attacking HH using the post, putting HH’s personal wealth in the public domain, dividing the Zambian tribes etc. HH thanks for this one & we need you to help unite Zambia at once even now while you are in opposition to the time you become our president. HH we love you & just continue speaking for the voiceless Zambians & time will set you free.

    • This is what creation of districts does IQ3 man! The councils will set up. govt offices, which in turn will attract zanaco, ABC, bayport…. in other words jobs will be created because that council or payport office in Chirundu will have to be managed by people, who will need cleaners, maids, places to shop. So in the long term, creating districts is a good thing. Funny the great economist HH does not see that in the long term, jobs will be created, not just govt jobs but all the stuff that goes with districts. Its a great plan and you call him CNP. Mucilimuledabwa. man of Action!!!! Go

  36. @Boot Leaks#17, @Tony Blair#23, @Kci#19Well, give us examples which can support your arguments either on the African continent or elsewhere. The head of the capitalist empire(US) is sinking faster than originally thought due to exactly what they (imperialists) are encouraging your country to embrace. The same habit led most of European nations to where they are today, debt crisis. They (speculators) will systematically lower the price of copper in the long run to force Zambians to pay more over an extended period of time. Your children will inherit an endless debt cycle. Interest rates and other terms payments are irrelevant here but hidden ripple effects. HH, your people will end up being economic refugees in our country ( S.A.). All African states minus S.A.do not graduate from hand outs

    • “All African states minus S.A.do not graduate from hand outs.” I thought what Zambia has done by going to the capital markets borrow money by succefully selling the Eurobond is exactly the opposite of what an handout looks like. So what is your point?

  37. Copper prices dont look good end of year. We wont be able to squeeze much dollars from the mines very soon. GRZ should have opted for say $5billion then yield rate would be as low as 1.5%-3%. This $750 million is too small a cake to do the jobs at hand. Its like going to a money shark and borrow 20 pin for the month and you end up not managing to repay because the money was too small to produce the things you wanted then interest keeps going up. Mwanawasa DID not complete HIPC it was done by Chiluba in December 2000. The projects selected for the money are too large for this money. NCZ complete rehabilitation requires $250million minimum and ZR requires another $700 million, We need to build another electrical power plant say 500MW the power deficit is frigthening.

  38. As long as the money raised is not for consumption then I have no problem. But if it stolen or used for campaigns then it is a big problem. Windfall tax is not the solution. what is  required is good wages and loyalties so that the money up lift the standard of living of the Zambian people

  39. Now just what kind of opposition party leader is this? Every progressive move government makes is faulted. There is need to call in head-shrinkers for this man.

  40. Y ar pf carders hv no morals….dont spoil th show wth bad words on hh.
    we hv mineral wealth to generat wat to sustain us,y do we borrow at ths time wen copper prices ar high,y borowing wen u dont kno hw to generat money….hw do u pay back? If u say u kno hw to,y dont u generat t nw lik mwanawasa did bcoz copper prices ar high? dont giv t mmembe and nchito

  41. Hakainde is Lame that’s why he makes mediocre comments about women. No sensible Zambian woman, except his oppressed wife, should support this man. What he said to Edith Nawakwi is unacceptable …

  42. No wonder you put such an incompetent government in power. You tell me you don’t see sense in what this man is talking about? Tell me, where is this borrowed money going? Sata doesn’t have any agenda at all. This money is likely to be wasted because this government has not planned for it. How do you borrow money before you determine whether you need it or not.. I don’t understand all this hoopla, this is kaloba. Why can’t the government generate revenue without borrowing? It is because our leaders are bunch of lazy people who are only hard working at stealing government money.

    • You clearly dont listen. They said the money is for infrastructure dev. inc;uding kafue gorge (no more loadshedding! hippie), health, eductaion (those 7 universities!) and roads. Chingola dual courage is first beneficiary. Even Chikwanda explained what the money will be used for. Dont just blub with no data pretending to be wise with an IQ of 4!!!!

  45. He is in the opposition. His job is to make us see the other side of the coin. He doesn’t have to shower the government with praises. Speak on HH.

  46. what has changed from the late Mwanawasas’ time to now that we should go back to borrowing when we struggled so hard to have these debts written off. you given an example of a country who have achieved sustainable development from borrowing. We just need to get the benefit of our resources like mines and one way of doing this is windfall tax. look at how much Venezuela, Bolivia have developed just over the past ten years due  to heavy taxing of oil mines, while the opposite with Nigeria were the foreign companies keep getting oil and the masses of the people keep wallowing in poverty. 

  47. And PF and SATA are busy opposing the Americans and the Europeans’ interference in the country’s internal affairs when they are still borrowing from them. As long as you continue borrowing, the west will still continue enslaving and economically colonizing you. I am not UPND but honestly HH is talking sense.

    Dambise Moyo said it and you called her names

  48. In a country where theft is a prime incentive for getting into politics, it is doesn’t make sense to borrow money before planning. How did the government know it needed $750 million in first place without planning? That money might just end up in people’s pockets. This was an experiment, someone wanted to see whether anyone on the world market would purchase Zambian bonds or not. Yes, at the interest rate the bonds were sold, no one would shy away from taking a chance. The problem is this takes us back into a cycle of dependency from which we were salvaged a few years ago. If is established there is a risk we are going to default, someone will purchase that debt and charge a higher interest rate. That is how we ended up in debt before. It’s not easy to come out of kaloba. HH is right!

    • Yeah I very much agree with you, how do you borrow before you exactly how you are going to use the money. the other day was reading something like 170m will go into Zambia railways, but the thin is have we made assessment on viable that project is. its seems we are doing things at impulse, how long ago did we have the repossession of ZR for govt to know already how much is needed??? to me this shooting in the dark. even at personal level you can walk into a bank and borrow money without a clear plan how you want to spend it.

  49. HH’s interest is to see PF govt fail because, he is so bitter and jealousy. Theres nothing wrong with borrowing, as long as the monies borrowed are put to good use. If this man really cared about Zambia. He would havenot ripped billions and billions of kwacha from this country during privatazation, useless man

    • Man, there every wrong to borrow if you have the means to make that money what you are borrowing? Debt has never developed a country. you have to create your own resources. Zambia has a bad record of stole national resources and nothing will change this time, believe me.

    • Dear Halak, How long have you known HH? If you have come across any evidence to support your allegations about theft, which the Police failed to uncover, could you please give that evidence to them asap.  

    • What is wrong with that if you can gain by putting the house on rent…or reselling to make more money…pay back the loan and buy another property…it is called business acumen. Ask us estate moguls and how borrowing has helped us to make us self sustainable.

  51. For the first time HH has made a positive contribution.
    If only you can tow this line of criticism, people will be more inclined to listen to you.
    I am not his fan but where it makes sense I will acknowledge.

  52. THIS WILL PROVE THAT ABEMBA ARE NOT MASHOLI (THIEVES). GBM WILL NOT STEAL A CENT. MMEMBE & NCHITO WILL NOT TOUCH THAT MONEY. UKWA WILL CHANNEL THE FUNDS TO ALL PROVINCES NOT JUST MUCHINGA. COZ IN THE END, IT WON’T ONLY BE MUCHINGA THAT WILL PAY BACK. LET’S WAIT & SEE ABEMBA…

  53. HH is spot on.This is the type of opposition that the country has been asking HH to offer.One that offers alternatives & solutions instead of demagogy.The PF govt must realise that if the windfall tax is re-introduced, more funds would be available for capitol projects such as infrastructure development.We should be talking from a point of strength.We have the natural resources that these investors desperately need.

  54. Ba PENTE please, help to take HH to Prophet Joshua of Nigeria. This man seriously needs prayers and healing. UPND advisers, please advice HH not to comment on anything even what he doesn’t know. Managing stolen property does not mean he understands economics. There is nothing wrong with Eurobond as long as it is kept within limits that the country can afford. So far, Zambia has been doing well and growing economically. This bond also means that we have faith in our economy as Zambians. We don’t need to listen to bitter pessimists like HH who will only rule Zambia in his dreams!

    • its you need prayers and deliverance you seem to be sick in the head. are you God to say HH will never Rule zambia? who knew that your CNP will be president?

    • ok. lets wait and see. at least the person you call CNP had a plan to reach state house. HH has no plan apart from bitterness, chauvinism, tribalism. don’t compare him with Sata. Sata was popular even when he left MMD. HH has never been popular but only with Bantustans. he has never been even a section chairman. 

  55. “The PF gvt fails to sell the Eurobond due to unstable policies” screamed The Zambian Watchdog headline. “The Zambian Government has failed to sell the 500 Million Euros Bond which was supposed to be taken up in April,2012, the Zambian Watchdog has been told.
    According to a senior government official linked to the Euro Bond programme, several factors have been cited among them the PF government’s inconsistency in policies and President Sata’s closeness to Zimbabwean President Robert Mugabe.”

  56. …. Cont’d “The other factors that had allegedly negatived (sic) the sale is the crackdown on opposition by the PF regime.The source said the failure to sell the Euro bond may lead to the creation of a big gapping hole in the budget that may lead to serious fuel shortages and drugs in hospitals.The source said the MMD government was on course with the programme which the PF government has failed.” The ZWD lies with a straight face. Being ashamed is not part of its vocabulary.

  59. ‘Why should I rush into borrowing just because I can, and risk plunging myself back into debt when I HAVE the capacity to raise money in-house using own means?’………. This is good and sound advice from a time-served Economist with a long track record that speaks for itself. For the sake of my Country on matters as important as this, I would rather listen to HH any day than to some obscure text book economist like Bob Sichinga and other arm-chair experts with nothing to show in terms of accomplishments. 

  60. Zambians seem to have short memory, this Sata condemned every little thing Mwanawasa did, HH is doing what Sata did. We should be proud for being borrowers!

  61. The majority of the bloggers are ignorant of the debate at hand.All they do is hurl unprintables on HH.Think with your brains and not your skulls.

  63. You *****s including hh, there is no country which can survive now without borrowing, no business which can survive now without borrowing. And as for this animal hh insulting Mama Nawakwi only shows how this ***** views women including his mother. I would appeal to all women in Zambia to be more pro active, should a man insults or molest a woman, women of that area should come together and beat the hell out of such *****s. Women you have been molested for so long, it’s time you started acting physical.   

  64. HH has a point, and it is sad people think of him as just opposing what the PF government does. After all, it is his job as the leader of the opposition to make sure the government is heading in the right direction.

  66. Take it from HH he is right.He is great at financial management which has enabled him to be the foremost business titan in zambia.Why borrow when you can institute more prudent management of funds? Zambia will be repaying these funds with about $45m in interest alone in the 1st yr.Add all that compounding interest and you have enough funds to rebuild half of Lusaka.Zambia should be investing like Libya,Japan or UAE in foreign companies and treasury bonds on Wall St instead of burdening our Cairo rd poor folks with debt.

    • Dear Halak, How long have you known HH? If you have come across any evidence to support your allegations about theft, which the Police failed to uncover, could you please give that evidence to them asap.

  67. The debate has missed the point. Whilst appreciating that this money could have been raised locally like from the increased mineral loyalty and “windfall tax.’ These measures do not yield results overnight and given the Urgency the country is in to develop, the Government therefore had to look elsewhere to borrow from to bridge the TIMING differences between when the money is needed to be invested and when the inflows are expected. It is therefore a commendable Job and good resource management from PF that they opted for the Eurobond that can even be paid off from future adjustments in  the regulatory framework to even re-introduce Windfall tax. BRAVO PF 

    • Tell these h*****s!!! Can you raise money from windfall tax and it be in BOZ on wednesday? The Hanswer is NO NO NO NO. Think. Thats why we all get loans. U want to do something now, otherwise all of us can just save and buy that house in 2023!!!! We need roads NOW, and more. thanks.

  68. Good evening

    As leader of one of the largest opposition parties, why didn’t HH air his sentiments before the bond was bought?

    What signiicance is there in criticising a deal that’s already signed, sealed and delivered? The best thing an opposition leader can do in such a case is to support the government in it’s cause and demand strict policy enforcement so that the country can hit it’s target and attain a better position. Hopefully, in one, two, or three years, our GDP will be so favourable that we won’t even need to use the whole bonds and we can repay them earlier than planned.

    • Lorna, nothing wrong with his suggestion at all. My point is that the suggestion has come rather late, if anything, it makes more sense to move with the flow of the river than against it when you’re not in power. Or do you think he would do things any  differently as president?

  69. The problem is not about HH opposing whatever PF does, it is bembas opposing whatever HH says even if it is 100% right. Why can’t you people accept the fact that HH is by far better than Sata? Your refusal to accept a fact which is clear to any unbaised Zambian is what is driving your hatred towards him. I challenger all you Bemba bloggers to point out exactly what is wrong in what HH has said instead of your typical mudslinging.

    • My friend, I am very bemba, maybe more than sata, and I don’t support this useless borrowing. So mind what you say. here I am not supporting hh, but his point of view. My wife is tonga, but not UPND, so i dont insult all tongas because of hh.

  70. Point taken @ Bemba man. I sincerly apologise for any offense taken. I was meant to say some bembas. It was a slip of the finger

  73. Nothing wrong with HH’s position on this issue.The other day former finance minister Magande also cautioned GRZ on borrowing (nkongole) especialy from private lenders.

    HH has even gone a step ahead to offer an alternative to nkongole,the windfall tax.

  74. Nothing that HH says makes sense anymore. Talk of HH fatigue! UPND should begin looking for a politically attractive leader to replace him. HH is too dour.

  75. @62, kahilu:

    I think you are wrong! Let me tell you why: Look, even in our Zambian culture, there is what is called DIGINITY and RESPECT. I can assure you that a person (even in our villages) who goes to borrow money from his neighbor so s/he can invest it in hoe to cultivate is field to feed his children is RESPECTED more than s/he who goes out to BEG for ‘ubunga’ to feed his family. So we shouldn’t be proud to BEGGERS!

    Whether we like it or not, Zambia will still need some help to meet its budgetary obligations. Therefore, going out there and borrow money, like every govt on earth does, so we can develop our country and economy is more dignified and respectable than BEGGING foreign govts to assist us every fiscal year.

  76. Continue…. @62, kahilu:
    By the way, foreign governments don’t just dish out money without all sorts of draconian conditionalities. Sometimes, they even dictate who can be contracted, and from what country. A point Mr. Sampa has clearly alluded to.

    So your comment has missed the mark!!

  77. continue…
    Off course our govt should be careful not to take the country back to the days of unsustainable external debt. Nonetheless, for as long as the money we borrow is used to develop our dilapidated infrastructure and build where it does not exist (Power, Road network, Railway system, Hospitals, Schools/Universities, Water, Airports, Bridges, Sewerage systems, etc,) the loans we pay for themselves as our economy grows. This will enable us to adequately tap other sectors of our economy and in turn reduce our dependency on mining (copper).

  78. continue…

    Look, the windfall tax HH is talking about was rejected/withheld by the MMD as well. And there is a good reason for that. HH should probably ask his bedfellow, RB, why windfall tax isn’t such a good idea. I do recognize how fantastic a “soundbite” windfall tax is to our ears. Quite true, a lot of Zambians, myself included, thought that it was a good idea to impose a windfall tax on copper mining, but this is when copper prices were soaring. However, at the current copper prices a windfall tax might be a “death nail” to our mining industry. Government should probably do a good job collecting and sealing tax loopholes as far as the mines are concerned, but what HH is proposing will simply make mining in Zambia very unattractive to foreign investments.

  79. continue…

    I give HH some credit though for debating the issue as an adult other than just criticizing. But I wish he had said this on the run-up to the issuance of the Euro-bond so people can debate the merits and demerits of his arguments. At the moment, he is several events late and $750 million short! That’s why his critique right now sounds like whining rather than genuine.

  81. continue…
    I am sure if PF had failed to sale this Euro-bond, HH would have been the first to attach the failure to all sorts of “imagined” sins PF is committing. Atrocities that made investors shy away from buying our debut sovereign bond. I bet this was his wish and his critique now is simply a revision. This is the reason why he needs to sober-up and start acting like a responsible opposition figure people can trust. Not some who is out to feed his humongous ego. God knows, we do indeed need credible opposition to provide checks and balances in our country!!!!

  82. If the PF had reintroduced windfall tax, HH would have spoken otherwise. That is why he waits for something to happen before he comments. People new about this to comment before it happened but HH had to wait so that whichever direction it went he had to come opposite. That is cheap childish behaviour and that is why every election he drops votes he inherited from Mr Anderson Mazoka.

  83. @Yambayamba: thanks for your good contribution. Was the issue of the Euro bond publicly raised before the debuty finance minister travelled to Europe? Secondly don’t you honestly think HH would have recieved similar insults had he raised any opposing voice to the govt’s intention to borrow?

  84. @ #80 your contribution was good until you started the usual ‘ego’ ‘bitter’ PF nonsense. Can you tell me just one occassion when Sata gave what you call creditable opposition to MMD? Wasn’t Sata doing exactly what HH is doing now? Why should you expect an opposition leader to be a praise singer for the govt? This is where you Pf bloggers get it wrong, Zambians are now alert to politics of deciet. The 90 days tricks will not work any more. H H is simplying doing what any good opposition leader would do. Politics is about outwitting your opponents. That is how it is played world over.

  85. We will tell you why we critically watch HH. MMD is history now people are looking forward now we have an opposition leader who came is saying only a Tonga can lead UPND what about the rest of Zambia?
    He style of opposing also leaves us with knowing we have no opposition. This is 2012 people have evolved over the years. People can tell who is violent, who is telling lies and who is marely just trying all sorts of methods to gain votes. We knew PF campaigned on Poverty, corruption, education. RB infratructure development, agriculture. What about UPND? What is you version of 90 days?

  86. HH is talking as if he knows nothing about about borrowing, the 6 per cent is okay compared to other loans we have been subjected to before, the good example is formula one loans done by our learned brother Dr Musokotwane. The opposition should be talking about the infrastructure projects to be implemented.Just because you are in opposition, it does not mean that you are not a Zambian, the UPND should ask for a share of the money for infrastructure projects in their constituencies. 

  87. mmm, though its checking balances , are we going to go about it like senseless people? When the Bond process was on going you HH and your cadres declared and sung that PF had failed to raise the EuroBond coz they were incompetent, when the EuroBond succeeded you started saying that glory should go to MMD but now again you have changed the slogan to full fledged condemnation of the EuroBond.  What can really people get from you HH. Are running mad coz of  frustration and bitterness. Way back we could give you the benefit of doubt, but now my dear you have missed it HH.

  88. @82, Zed Patriot:

    The issue of Zambia’s sovereign bond is not new. This issue started in the Mwanawasa administration and continued through RB’s administration. The PF simply concluded what these two past administrations wanted to do. I can’t tell you why Mwanawasa or RB did not conclude this issue. But it isn’t new.

    So if HH didn’t know about such an important issue, an issue with implications (bad or good) yet untold, then you have to wonder what national issues he has been spending his time on. Well, should we say frivolous ones?

    And if you read ZWD, and other blogs, you should know that the issue of debuting the Zambian Euro-bond, and Mr. Sampa and team going on tour to showcase the bond, hasn’t been a secrete at all. Unless, of course, someone just wants to pretend!

  89. @83, Zed Patriot:

    Calm down brother! If U go back and read the posts about Sata when he was in opposition, you will probably find that he too got a lot of criticism for being petty. I personally tend to be attracted to “REASONS” rather than “PERSONALITIES”. Because being a personality cult worshiper tends to dwarf an individual thinking and intellect. This has been my mode of operation through and through. I don’t believe in criticism rooted in hate, pettiness, or partisan and politics.

  90. Continue…@82, Zed Patriot:

    By the way, if you think “us” so called PF cadres get it wrong, UPND cadres (and I am guessing that’s what you are) are even worse. Look, you can not jump off of a tall building just because last guy who did it only broke a leg! That would be very foolish of you, wouldn’t it? So for UPND and HH to think that by emulating what Sata did while in opposition is going to work for them too is really foolish indeed!

    Have a nice day!!!!

  91. Please please and please, why did late President Mwanawasa reverse the windfall tax? where was HH when this reversal was done and what did he say????? Stop being hypocrytical and start politicking with your heads and not otherwise. The PF said they would re-introduce windfall tax and could not after being privy to the real reason the tax was abandoned by the Mwanawasa regime. 
    Becoming a President takes more than just playing to the gallery. Stop fooling the gullible masses and offer constructive criticism. 

  92. I get so worried when I read some of the comments here. No wonder we are poor, since when did borrowing become a praise worthy thing. And since when did Ghana and Senegal become our trendsetters. Lets get serious as Zambians please…I do not support HH but on this one I am will him. You say MMD and RB started this, isnt it the reason Zambians voted for a change of govt, is this surely the change people hoped for??? More borrowing???? Cry my beloved country.

  95. HH is a useless fool why didn’t he oppose this and offer other alternative solutions long before the government borrowed the money? The fact he is saying this now proves that he a complete nutter who just talks for the sake of being heard. True opposition is opposing something before it’s implemented. He might talk sense now but it’s pointless just like he is a hopeless opposition leader. 

  96. @81, i agree with you. This scumbag waits until GRZ makes decision thats when he comments. I call haha chimbwi no strategy(cns) coz everything he does or says has no originality. Why wait when you knew about matter long back: people whi say this scumbag is successful and intelligent have placed there trust in wrong chap.

    • That is called strategic opposition politics. No opposition party in the world commends the govt on what they do, their job is to offer a better alternative. HH is actually doing a commendable job, imagine Zambia without him? Those of us who look at issues without biasness are happy with the opposition. If you can’t see his point then you are really a dullard like some of your relatives in govt

  97. HH is right. These PF or should we call them PamaFi thugs are excited with all the money that they found in State house. They can do almost anything with no thinking. Its all about kaponya style they do not have what it takes to run the economy of this country. HH is not bitter he is just advising these illiterates what they could do to make Zambia better. Bangwele just listen and dont say HH is bitter. Its you who is bitter because you have failed your own exam within 90 days PamaFi catch phrase for the illiterates. I end here!

  98. I fail to understand HH. The discussion concerning the Eurobond started with the MMD and continued with the PF who have successfully managed to get the bond. During all the time the discussions were going on HH kept quiet. As soon as the PF secures the bond he says Zambia doesn’t need it!! What is this guy up to?

  102. #RudeMonk you sound very bitter. I did not know they still make people who go on the rooftop and start insulting these days. Your father must have been a 100yrs when he fathered you to produce such outdated sperms. We are talking bonds here.

  103. HH would never implement the wind fall tax…he knows if the PF went ahead to implement it would backfire as investors would pull out just like Anglo did when Mazoka was alive…this is a political gimmick which he knows he cannot implement too, for it has adverse effects on the economy. Zambia is not the 1st country to borrow mwe bantu as Germany, Spain, Netherlands, Portugal, Ghana, Senegal have accessed these funds…there is nothing to be elated about (of course) but it is a fact that investors have confidence in the economy under PF and HH is avoiding reality. Wake up Zambians!

  104. Yes the windfall tax would bring great benefit to the economy but it is really dependant on high copper prices…if they go low we cannot not apply the tax but we need the money now for our CAPEX to create efficiency in the economy and the PF does not want to wait for 2 years to start implementing developmental projects. The TIME IS NOW without waiting for election fever….the PF does not need rallies but they need to work now before the next elections and this is what pains HH because he knows in 5 years PF will develop this country to unprecedented levels and he will glee with envy out of his bitterness as a male chauvinistic pig.

  105. H.H you are slowly becoming irrelevant to Zambian politics it’s seems condemning is the only thing you know. Before the Bond was issued you said it will never sale now that God is on PFs side and it has been over subscribed you condemn what kind of a person are you. Windfall tax you know very well that it will back fire as investors will run away. Even Ghana is reconsidering their position on the windfall tax

  108. @ No. 2, Zebb Mpinganjira, why the fck are the pf fools singing praises about themselves if the EuroBond was started by MMD? 

    Its good to have two sides of the story. All the fools clinging to one side are all *****IC. Kumfwa konse ifintu ifi. Checks and balances are welcome. HH na Nevers continue so that we have 3 sides of the story. Kuti baletu shinga butter so better twaumfwa konse.

  109. I We Ka HH you will never appreciate some one effort as long that ELEMENT stll hunging around your neck. This time around people would rather listen to E. Chipimo than your unnecessry critics.

  110. Fellow Zambians, you’re fighting an irrelevant battle. The issue is not whether government, PF, CNP or whatever you want to call it, borrowed money or used internal resources. In today’s world you have consumers and producers, The significance or insignificant of $750 million dollars depends on the results. Borrowing that money to build infrastructure, sustain minimum wage, subsidize this or that is purely cosmetic. That’s being a consumer. Unfortunately, that’s how we gauge our government’s competence, based on whether UNZA students get a meal allowance or not, free medication or not, fertilizer from the government or not..etc.
    Let’s refrain from that and let a free market rain with structures of course. On top of that, lets encourage production for export rather than to consume.

  111. Many scumbags on this blog, in their complete id1ocy, are conditioned, if not programmed, to condemn HH. Try to see sense in some of the things he says even if you are a hardcore fan of the kaponyas.

  112. useless hyenas will always cerebrate even when they have comme across a rotten carcaaurs.We all cerebrated when we came out of HIPIC today we cerebarting becoz hyenas have decided that we should start eating bornes again.

  113. I must agree that HH has flip-flopped on this matter, however he has a valid point. As Zambians we should be concerned when our government borrows huge sums of money with no Tax base to back up the borrowing. Much as i appreciate infrastructure upgrade plans, if the upgrades are not able to generate income then government will have to find money else way. My concern with government is that there is no clue at all on our to increase the TAX base to help with the growth of the economy. If the Tax base remains as low as it is, i agree with HH the government is mortgaging the future coming generations. Is anybody asking why we are borrowing from Europe? Europe is in debt and we are willing taking it off their hands and passing it on to future generations, how smart is that?

  115. We have to encourage self sustainability. Don’t go and look at your flat tire saying made in china, Taiwan or south Korea. I remember being in Zambia before I left for college in the U.S. wearing patapatas saying made in Taiwan. I didn’t know the implications and did not think beyond that. Now that I’m enlightened, It really makes me mad to know that I contributed to our downfall. Let us support the small entrepreneur to facilitate within the country and export a good quality finished product and then TAX them like we should with the copper mines or coal mines.

  117. The Know-It-All
    “Know-It-All demands attention and gets it. Such person refuses to be wrong, backs up statements with facts to prove stated points. Know-It-All expects others to either be in agreement or to argue his or her point, to which Know-It-All is ready to counter-argue. Silence is not in Know-It-All’s vocabulary. When hit with a wall of silence, Know-It-All pulls out more ammunition to stir the argument pot. Silence serves as a deadly weapon for Know-It-All, who finds silence threatening. However, after a while Know-It-All generally weakens to it.”
    by Joyce M. George-Knight (food for thought for one HH)

  118. yaba naleti balisambilila ba hh kanshi chipuba neshilu kutilyalandapo ifya mano.everything is to criticise .minimum wage mwabose,appointment of cabinet minister mwabose,RSZ grabbing mwabosa,chipimo and nawakwi’s tour mwabosa,creation of muchinga province and new district mwabosa,appointment of the chief justice,DPP and others mwabosa,euro bond mwaboselela what kind of the person are you? even chiefs from southern province have realised that you are useless.

  120. HH must understand that as at February 2012 (According to an IMF report on Sovereign bonds) the percentage debt ratio of Euro 6.9 trillion on Sovereign bonds is attributed to major economies in Europe; Germany 23%, France 21%, Italy 25%, Spain 10%, Belgium 5%, Austria 3%, Finland 1%, Holland 5%, Greece 4%, Portugal 2%, Ireland 1%. This shows you that these economies have also relied on private funds.
    Now know that Credit default swap spreads rose to new highs; even sovereigns with relatively strong public finances (including Austria, Finland, and the Netherlands) were hit by illiquid market conditions but the private investors have chosen to loan funds to Zambia because they envisage a less risk to their funds. There is INVESTOR CONFIDENCE in Zambia.

  121. Also know that there has been an erosion of the foreign investor base in major economies (in the EuroZone) due to several distinct factors:
    ** Rising credit risk and market volatility
    ** Rating downgrades and exclusion from benchmarks
    ** Increased haircuts on repo transactions
    But the private investors have chosen to loan these funds to Zambia in the midst of challenges in Europe. When Sata is hard on the diplomat corps, we cry that Sata will scare away investors but they are risking their money on Zambia and you think it is a bad deal… think again. It is not good to borrow but the wind fall tax is far fetched ask the MMD.

  122. Almost of you Zambians, are bent on attacking your own countryman, Mr.HH for reasons which lack substance but only in the interests of continued cycle of poverty and continued accumulations of profits for ruminants of capitalists who do not like you anyway. Look at yourselves and, who do you identify yourselves with? Do you identify yourselves with poverty or praises from a ruminant of the ideology of capitalism?, Do you identify yourselves with the just cause of taking charge of your destiny whereby no one prescribes to you as to how you spend your national income on important social projects for citizens of Zambia? The above freedom is not possible under a yoke of debts which the PF govt. is currently accumulating. Viva UNPD. Rescue your people from self imposed slavery.

  123. HH must also know that there has been an erosion of the foreign investor base in major economies (in the EuroZone) due to several distinct factors:
    – Rising credit risk and market volatility
    – Rating downgrades and exclusion from benchmarks
    – Increased haircuts on repo transactions
    But the private investors have chosen to loan these funds to Zambia in the midst of challenges in Europe. When Sata is hard on the diplomat corps, we cry that Sata will scare away investors but they are risking their money on Zambia and you think it is a bad deal… think again. It is not good to borrow but the wind fall tax is far fetched ask the MMD.

  124. HH must be supported as an opposition leader.We need some strong and talkative opposition to achieve meaningful development.It is good people are contributing to the debate.#120 contribution is what we need to make a good judgement.We also need to read some nonsense in order to extract sense.However remember not to trust POLITICIANS.

  125. Thats theory from HH , practically the issue of windfall tax has much more negative consequences on our economy than going for capital markets. So don’t think that PF has no think tanks.

  126. You guys just ignore HH. The man is tiered of frustration and bitterness. I am feeling sorry for Him coz he is losing ground so quickly. 

  127. HH has a point here, especially with the clear records Sata has to have taken Zambia into a debt crisis when he worked with Chiluba to borrow funds for personal & family consumption. HH your the only hope for the hopeless Zambians, you are the only voice for the many voiceless & vulnarable Zambians. Sata has failled to govern Zambia, period! Only hiring & firing, we cant survive as a country on such a nonsese. We need a complete political revolution & a national unity start. Thanks HH for been bold even amidst intimidation & accusations. Thumbs up HH!

  128. what is amazing is that we have a plan to borrow but we have no plan to pay. can someone on this blog tell me what plan is there to repay these monies

  129. That is what happens when you give a monkey chance to take care of a field of ground nuts. they even get nkongole to loot through fake contracts. we need a real government.

  131. One day soon a bemba will cook this ‘bemba thing’ in a pot and eat it. How can you explain how people can support borrowing

  132. Guys, dont mind hungry hyenas. You can read from the emotions exhhibited that they are hungry and they are just ranting. Just dont ignore them completely, throw them a bot of some bones and you will see how they will scrumble. Tueleteka balefwaya nangu tabalefwaya. tulebateka bakapoli.

  133. I believe in every home there is income that is generated be it weekly, monthly, yearly etc. surly matters of capital expenditure requires one solid income either borrowed or untied AID while it would be true that the Government could make money through channels as pointed out be HH I beg to differ with him that even with his so called financial empire he had to in one way or another borrow to finance his activities., be it infrastructure or business opportunity what we ought to realise is that with our meagre income from  limited resources

  134. infrastructure development in Zambia at the moment could only be attained through borrowing or partnering with the private sector. For those that are against the Eurobond as it is a fact in Zambia can only achieve or have achieved infrastructure development through corrupt methods i.e. Stealing, like HH RB and the like      

  135. Though I do not agree with the way HH does his politics but him and Mumba can give us good young Presidents mwe. tired of these frredom fighters…old ugly African Presidents.

  137. 1. If the bank gave you a loan of ZMK800 million to build a house, would you wife welcome you as a hero?
    2. If you worked hard on the farm or job and save ZMK800 million to build a house, would you wife welcome you as a hero?
    Same project but different resource envelops. Which do you celebrate?? And where you stand is a reflection of your economic outlook.

    • In the first place you can’t get the K 800 from the bank if you have no capacity to pay…if you don’t have you can start with borrowing and become sustainable….otherwise you remain a pauper! Here we are talking about waiting to raise $ 750 m from wind taxes (in 2 years) against borrowing NOW because the money is not there to start developing NOW! Nothing is good about borrowing but it is good to be realistic too.

    • @138 the observer

      Have u considered the fact that internally generated revenues is one of the sources of project finance? and that its less costly? Think in terms of what you have first before getting with a begging bow is much better is it n`t?

  139. Well HH logical on this one including many issues for which he is called names.The only problem I have here is that though genuine his concerns are they come after the $750MILLION Euro bonds have been issued.I wish he expressed himself in that manner long before the bonds were issued.On windfall tax its never too late the PF government can pick a leaf from HH`S concerns and engage mines to introduce the WINDFALL TAX , but we also need to be careful just in case mining firms reject the idea. HH is indirectly asking the PF govt to ensure that Zambia benefits from the mineral resources being exploiting by mining firms.MMD under RB funded national development projects using revenues from the mines why can`t PF under SATA do the same?

  140. Can someone tell us. how much tax revenue do we get from the mining sector? Is the sector over taxed or under taxed compared to other countries? Is introducing the windfall tax asking too much from mining firms?

  141. HH, has a point bt arguing it nw is wasteful becoz the bond has been acquired. What we need nw is to monitor PF so that these monies are injected in projects that will yield highly. HH s points should be considered by our Government if we are to move away from borrowing and improve our econo

  143. Now I believe HH is bitter. After praying that the sale fails, after it succeeds it is bad. This is clear case of ‘sour graping’. Imagine if such an inconsistent and directionless person was in statehouse! GOD knows why he will never allow him to lead this country. I am sure, very soon he will say he doesn’t need our God-Sorry!

  146. Let me explain the Eurobond using a talk time example.
    A need has arisen to explain the recent Eurobond issue by the Zambian Government using an example that everyone can relate to and understand, talk time.
    Now Airtel, a mobile service provider in Zambia, has a promotion called Siliza. This allows you to borrow air time when you have nothing in your account. We shall use an adapted version of this promotion to explain the Euro Bond.
    Now before we begin, we must explain two key terms that are vital to understanding a Eurobond. The rest of the article is at http://www.economeka.com/ with benefits and key sectors of development

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