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Alba Iulia
Monday, May 10, 2021

We will continue borrowing, we are in a hurry to develop-Miles Sampa

Headlines We will continue borrowing, we are in a hurry to develop-Miles...

FILE: Finance and National Planning Deputy Minister Miles Sampa
FILE: Finance and National Planning Deputy Minister Miles Sampa

Finance Deputy Minister Miles Sampa says government will continue contracting foreign loans because it is in a hurry to develop.

Mr. Sampa assured that the country’s debt sustainability position is very healthy to warrant further borrowing.

“We are sitting around 30 percent of GDP ratio and we would be comfortable to increase that to around 45 percent of GDP and we would be going back to the international market as soon as all arrangements are put in place,” Mr. Sampa said.

He said the US$ 750 million Eurobond was so successful that it has given government the impetus to go back to the market and borrow additional funds.

“Our debut issuance was very successful, remember it was oversubscribed and we believe the interest in Zambia among the foreign investors is still high and we want to cash in on that,” Mr. Sampa said.

“We should not be scared to borrow as long as we are able to pay back.”

He said government wants to ramp up investments in key infrastructure developments such as roads, rail and energy hence the need to borrow more.

“We have said no to increasing taxes for our people because we are a caring government.

So taxes won’t go up and our only choice is borrowing from the market. There is no country that does not borrow, the USA, Japan, name them, they all borrow to develop but what is important is paying back.”

Mr. Sampa reiterated that the entire US$ 750 million Eurobond has been exhausted.

“Yes the money is finished because we dispensed it to spending agencies and we have done well on that’s score.”

He said, “Zambia Railways received $120,000,000 while Development Bank of Zambia received US$ 50,000 with the UTH getting $30,000 towards the rehabilitation of the country’s largest hospital.

“Everybody has been complaining about the state of UTH and we saw it prudent to spent US$ 30,000 on rehabilitations there in order for the hospital to serve our people better.”

The Finance Deputy Minister disclosed that the largest chunk of the Eurobond went to ZESCO for its equity in the Kafue Lower Power Station and other ongoing power projects.

60 COMMENTS

  1. This idioooot is really stinking. What are the results from the application if any of the euro bond? Just borrowing like animals is no good and surely disbursing funds is not utilisation. This group of animals in PF does not even have priorities because for example, giving money to DBZ is not a project for which borrowing can be justified. It just shows that they have no ideas of where to apply funds. Being in a hurry with national affairs not guided with reasoned plans is like dangerous driving which results in fatal accidents.

    What development can PF demonstrate when hunger is looming because of their lack of both planning and action in the Agro sector which should be a priority area . May God serve us from this bunch if useless hooligans.

  2. His numbers are not accurate they should provide full disclosure. By the way, your president launched his link Zambia so called project, I thought the money was to be derived from this source, but it seems he was just yapping

  3. Please go ahead and borrow mo. Zambia is desperately crying for development! We are MILES behind Kenya and now Tanzania. Please cage plunders first, RB and his Children….

  4. Miles Sampa be warned that these monies you are borrowing and failing to account for will haunt you in the not too distant future. For example you did not give the facts and figures on how much money was given to Zesco and the DBZ , you merely said a big chunk, how much is a big chunk? We know you are in a hurry to divert these funds into your damn pockets, you bloody thieves.

  5. On borrowing, what Charles Milupi said made a lot of sense. He urged govt to mobilize local resources through mechanisms like windfall tax on our minerals than go to an open international market.

    Why cant we do this as advised by Milupi? This is our money, generated by our people from our resources, in our country and then we let it slip away to benefit some obscure village in Switzerland.

    Then stup1dly we go and borrow this money at great cost & tied with many strings, money which is our in the first place!!

    When are we going to be independent and start thinking progressively?

    Yes we are in a hurry to develop, but we don’t have to be irresponsible by borrowing anyhow.

  6. how much has gone to by-elections so far?,comision of inquiries?let alon chikopa.iwe sampa,just that was enough to rehabilate UTH,Give DBZ and partly rehabilitate kafue hydro.just because u.s.a borows does not mean you should emulate,think of Greece too.if you want money reduce the number of ministers,stop useles by-elections,don’t over employ,reduce your salaries including that of sata.we dont need another h.i.p.i.c where civil service sucrificed its salaries under lpm.

  7. Distant Drums, I concur with you, what is a big chunk or how much is it? We would like to know how much has gone to ZESCO.

  8. But $30,000 is equivalent to faz president 3 month pay. And you say this will improve the condition at uth?

  9. Please be mindfull in the way you are borrowing money do u know the effects of debts ? Within a short period of time you want to borrow huge sums of money which will take 20 years to pay back

  10. I have a few observations, others have alluded to this, $30 000 to UTH and $50 000 to DBZ are insignificant figures for whatever those institutions are engaged in. I heard a course that the Deputy Minister enrolled for cost $30 000. Surely, if UTH was indeed given $30 000 is this reasonable? DBZ funds middle to large enterprises. How many enterprises would $50 000 fund for capital investiment. For the sake of transparency, why cant ministry of Finance give us a break down of how these funds have been used. The only significant figure that is cited is that for the rehabilitation of ZR.
    Lastly, to say the USA or Japan borrow as well. Please dont compare oranges and mangoes. These countries have a big manufucturing base. What does Zambia have? Dont rely on copper taxation. We are poor

  11. Bonnett wants his money.I will not be surprised if this is not paid from the Euro Bond.They have really taken us for granted! WANZA WENU.

  12. Such rubbish there’s no gain in borrowing nothing special you become a slave of the one you borrow from how dull are these pf guys we know the money is being used for buying disgusting mps and for bye election and for buying personal cars miles don’t lie to people we know you have no plan

  13. We need to borrow an additional $1billion for development to move much quicker. I hope this can be done in next 12 months.

  14. This uncordinated cabinet makes me sick. they are busy making debt repayments very expensive with a weakening kwacha why dont you address the foex rate. What financial displine are you portraying with your byw elections and one party state agebda. Stupid monkeys

  15. Our children will suffer repaying this money. How much has pf paid back?these are thieves under our noses and here we are allowing them to rape our country

  16. borrowing just bring more problems the best way is to creat more jobs you have more people paying taxes then develop the country.

  17. This is just poor reporting. USD 750m was borrowed and we know that USD120m went to ZRA, USD30m UTH, USD50m DBZ, ZESCO USD200m and the rest went to road loan repayment for MMD formulae one roads & I want to believe the RDA Benefited too. I gues the minister just needs to give a full breakdown to put this matter to rest.

  18. why is this dude not the acting Finance Minister? How was Nkandu Luo given that privilege coz i cant understand the connection between her Ministry and the Finance function. Please help me understand the logic behind her appointment. Is there some precedence to this?

  19. being in a hurry to develop?…yet the sectors on which the money was spent on dont show any seriousness in ‘being in a hurry to develop!…and any way the idea of borrowing just for borrowing has gone by…in this 21st century mindset of politics….politicians have inculcated a business like attitude toward governance issues thats why there is u huge political debate in the US congrees and senate over borrowing…countries have waken up to the reality that debt breeds poverty! we suffered in the austerity years of FTJ…(because he had no choice…KK had borroewd too much…in the name of development…and left us poor slkaves of debt)…USA,GREECE,CYPRUS,SPAIN PORTUGAL..are suffering because of debt…NOW THIS PF GOVT IS MIMICKING THE SAME GIMMICKS?…

  20. Please bring Magande back. We scacrificed alot to reach HIPC and now we have thieves just borrowing to steal. If US$750M was utilised or invested properly, unemployment levels would have gone significantly! We want people giving facts not chunks…it shows that he can account for the money …… but wants to borrow again!!

  21. We are back to the KK era. An era of borrowing! This culture of borrowing will put us in trouble in the future.

  22. Miles Sampa is Finance Deputy Minister for Exchange Controls, Strong Kwacha and More Borrowing. This guy’s Economic philosophy is so African socialism. Zambia will be an economic wreck by the time this man’s family is driven out of power.

  23. I enjoyed the reality check provided by pictures of the week. For all the heartbreak there were various projects in development. It all costs. No doubt unless we take on internal wastage, streamlining of current services, whittle away at aspects of the budget and face the taxation issues head on…borrowing will go on for the foreseeable future. Measuring the outcome in a few years will be interesting. More transparency. Steady on. We will get there.

  24. this borrowing is worrying. there are no tangible and visible improvements the usd750 million which has been disbursed has brought about. I smell a big fat rotten rat here. ask me in 4 years

  25. Was Aka fired? He was the only non Bemba person heading a parastatal in PF AND actually announced his resignation soon after the PF took over from MMD, knowing very well that he did not qualify on tribal lines to serve under PF. It is even a surprise that SATA pleaded for him to hang around as he could not find similar brains in muchinga to run TAZARA, in fact there has never been such brains since indepence

  26. Miles Sampa is the Finance Deputy Minister for Exchange Controls, Strong Kwacha and Massive Borrowing. Zambia will be an economic wreck by the time this family is done with it.

  27. Keep on borrowing life goes on,even these developed countries they just borrow that’s how they develop,because you will never have your own money to develop the country that’s how it works.

  28. $30,000 for UTH rehabilitation honestly, this government is a joke. $50,000 for development projects, is this capital investment surely, disgusting.

  29. For over 40 years, Zambia failed to develop because of the unsustainable debt levels accumulated by UNIP. Zambia is experiencing a rare boom period which others fought so hard for and then you have clowns coming in to take us back to the bust days. What we need is efficiency in capturing revenue and less wastage by government officials. We need transparency in government spending because the country is being short changed by these greedy lot. How can you claim to be in hurry to develop when you are busy throwing tax payers money on expensive bye elections. You have government officials who publicly accepted that they joined government to put food on the table and not to serve. What a bunch of jokers!!

  30. Miles Sampa speaks at 1000revs per second while simultaneously rapidly blinking his eyes. That’s the demeanor of Mchinga liars and thieves. US and Japan borrows, so we should also borrow. My foot! Even on ratio basis, do we have the capacity these economies have to absolve the shock of borrowing. If we have, why did we qualify for HIPIC and not the US and Japan? Miles, such reckless comparisons exposes your lack of “technical know how”. You are very lucky, you are the President’s blood relative so keep it up.

  31. Its all good borrowing when you are going to invest the monies in capital projects….what is laughable is bragging about a successful Euro bond issue when you did not have a clearly definite plan on how to invest the monies. What ever happened to investing in Nitrogen Chemicals of Zambia? In all honesty how do you spend borrowed money on refurbishments/facelifts and issuing loans via a DBZ. It is clear these guys have never ever run a successful business. Are you telling us GRZ can not raise a mere pantry $30,000 and $50,000 from its own coffers. One wonders where Sata was going to get $90,000 for every player had we retained the AFCON 2013 cup.
    I wouldn’t entrust this Miles Sampa with my Kitchen….No way!!!

  32. SOME OF U EVEN IF U DON’T APPRECIATE THE UNPRECEDENT PROJECTS PF HAS EMBARKED ON IT DOES NOT MATTER. U HAVE BEEN LIVING IN A ZED THAT LOOKS A JUNGLE .U KNOW IF U HAVE MOVED ND MOVED PURPOSELY AND NOT LIKE HEADLESS CHICKENS .U’LL C DAT ZED IS A BUSH

  33. IF DEY ARE BARROWING REASONABLY AND NOT DE WAY SOME OF U ZEDIANS DO,E.G FARMERS HAVE BEEN DOING THAT SINCE 1964 ,C/SERVANTS & BS/MEN AND WOMEN HAVE NOT BIN PAYING LOANS .SINCE THAT’S YO MIND SET U THINK EVEN THESE LEADERS ARE LIKE THAT.I DON’T C DAT

  34. Iwe Miles…, you knew how much you needed exactly in order to see positive and fruitful development, why then did you opt to borrow less? i thought you are well equiped when it comes to borrowing in utu ntinti? This kind of borrowing will land us serious repucations for the rest of Zambia’s life, if you borrow now, i suggest borrow a huge chunk of Dollar/ Euro or Pound, wikabwekeshapo nafuti!

  35. This is a joke

    A government spending US$30,000 at UTH. I can even sign you that check what a batch of baboons

  36. In KK’s days, the word “borrowing” was replaced with the word “clinching”. Zambia “clinches” another loan.

  37. so let me get this straight,Lusaka City Council wants to borrow 500 mil dolaz-thats a Lusaka alone,and then you guys say 750 mil is enuf for the ENTIRE Zambia??!! Wake up pipo,that money is/was never enuf; MMD starved the nation interms of infrastructer,we in the stone age wen it comes to roads,rail,airports,buildings..how many of u here dont feel shame wen u land OT in SA or Cairo airport n see your frnds airports compared to ours which looks like a bus station! look at it from that angle and u will see how desperately we nid more money…

  38. All the arguments against borrowing are valid but have been weakened by the wrong figures quoted. Is it deliberate to strengthen the arguments or genuine mistakes. The figures are in millions not thousands. Good concerns against borrowing,though.

  39. Sampa is one minister who entered parliament thru cheating.Gvt in a hurry to develop…indeed quite agreed but ask him what has he done in Matero?Matero is in a disaster,Sinyangwe tried and her presence was everywhere not this borrower…if u allow these characters to continue borrowing,Zambia will be plunged into deep deep debt..what capital investment projects is this Gvt doing.Opposition keep quiet and let them fail own their on…Euro bond when hunger is looming….why borrow?

  40. Miles yes USA and Japan can borrow . But you cannot compare these two to Zambia. Japan’s debt is local. The Japanese government borrows from its own institutions and people ie pension funds and savings. Japan does not borrow from outsiders. The USA is also special. The US owns the $dollar, a world reserve currency. They borrow the money they print. Part of US debt in form of treasury bills is held by China. The USA dictates the pace at which this debt is serviced because it controls the printing presses. Besides the USA and EU are both being weighted down by these debts. Obama is surrendering 5% of his salary back to the treasury as a symbolic gesture of his contribution to federal spending cuts. There’s no free money dear Miles! Ask Greece and Cyprus.

  41. 1. The $30k and $50k are probably $30,000,000 and $50,000,000. Any logical person can see that they were typing errors.

    2. If we borrow for Zesco grid extension and road infrastructure, development will follow the newly developed areas. It worked well in Chingola, Solwezi and ‘Chalala’.

    3. A linked nation is a developed nation. Once we create manufacturing industries across the country, our human resource will be able to generate enough taxes to repay these debts.

    4. Keep it up – much better than chasing ManU and RB….

  42. Miles, you are abusing the office. Your time will come. parliament or a thinktank committee must be borne to direct how these borrowed monies can used. Logically no sensible person should borrow money to spend.

  43. the only thing that Sampa has forgotten is that the bond has an annual interest of 9% that is approx usd 70m per annum, that means that in 10 years when the bond needs to be paid back GRZ wii have to pay USD +/- 1.5 BILLION!!!!!!!

  44. @Br. Paul S.
    Whether its $30K or $30m any logical person should know that you DO NOT borrow to spend (on refurbishments and risky loans). Again I restate that GRZ can still raise $80m from other sources. Let us not sugar-coat issues here it is clear that your Miles Sampa has an appalling understanding of basic economics.
    As for ZESCO, it has the capacity to borrow money (and will) on its own why oh why did the ZESCO CEO send out his people to the stock market for consultations?
    What is important here is that this is not Sata’s or PF money this is our children’s debt hence we need greater scrutiny as to where the funds are allocated and invested.

  45. On Thursday I was quietly asking myself why the president had appointed Dr. Luo to act as Finance Minister and not Miles? The answer is right there in the article, Sampa is too incompetent and does not know what he is talking about half the time. Sampa like Guy Scott are deadwood another example of taxpayers money going to waste on the wrong individuals in the wrong office. How I sympathise with our technocrats in Finance Ministry who spend 8-11 hours a day with such obtuse politicians like Miles.

  46. under mwanawasa and magande we archieved debt cancellation,after this we needed to see how we can broaden our tax base to raise more income locally,we needed to see how the mines can pay more taxes,how foriign owned busineses can spend more money here-in investing and re-investing and in improving and beautifying the premises and enviroments they operate in,how they should have corporate governance that will help the people that reside in the communities they conduct these busineses.We needed to avoid unnecesary politiccal games that are a drain on our meagre resources,we needed to reduce the cabinet jobs and those in the lean GVT to work 3 times harder and sacrifice first as leaders,we need these leaders to avoid paying them selves,their wives hefty allowances and spending huge on

  47. cont`d
    spending huge on entourages and seminers were they are just yawning and dosing.We need to inculcate the virtue of hard work,honest and sacrifice now for better future of our children in the personal mind and heart and life of every citizen through our schools, churches,NGO`s Gvt agencies and every means available,not to spoil my contribution with a political tone ,but we need 1 million more HH`s and Milupis in this country so that the money can be made and spent here. I dont think its the right directn this GVT of borrowing and borrowing, it has never been sound economically to borrow for consumption.Let PF borrow for projects that will make money ,such as adding value to our resouces, such as revamping the agric. sector i.e giving imputs to farmers on time,providing market for

  48. providing market for their produce and quick payments. Let Gvt borrow to invest in the best quality education for the country and infrastructure such as roads. Please you PF gvt full of tribesmate and relatives dont be a menace to the zambian society, dont take us back to choking debt levels.

  49. This is crazy talk. I hate dullness. Why are you borrowing? Where is the money going? Where did the 750m dollars go? Zambia worked so hard to get out of the rot it was in and we don’t want to go back to the days of HIPC and wage freezes. We need better from our leaders. For now, lets utitlise our current resource evelop in a sustanable manner

  50. Keep it up handsome dude forget about fools who just talk. I am really impressed with what your govt is doing

  51. This government has failed to account for what it borrowed and now he as an “economist” can make such a statement that we will borrow to develop. Accountability is the mother of development not more money in your pockets, you will live to regret this mind you, all the others are old and will be gone while you will dance to the tune of the courts.

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