President Michael Sata has assured that Zambia’s debt remains insulated from distress over the medium to long-term period.
President Sata said this on his facebook page reacting to concerns raised from various people that the country is slipping into a huge debt crisis.
Good morning friends. Yesterday when I gave the preliminary data on our country’s economic outlook visa-vis the real GDP growth; a few of you raised concern on the perception that our country is slipping into a huge debt crisis. My assuring response to your genuine concerns is that the country’s debt is VERY sustainable over the medium to long term.
In 2013 alone Zambia borrowed over 1.5 billion Kwacha.According to Reuters news Zambia’s Ministry of Finance was raising a new $250 million syndicated loan- the first syndicated loan in 30 years.
Loans signed in 2013
K366 million – Dec 31 Government signed K366 million loan with China to be repaid over a period of 20 years.
K207.5 million (US$38million) -Dec 18 Government signed a $38 million loan with the African Development Bank to support and strengthen Zambia’s Resilience to Climate Change.
K573 million -Dec 17 Government signed a finance contract of K573 Million with the European Investment Bank to finance the implementation of the Zambia Water and Sanitation Project.
K218.4 million– Oct 22- Government signed two loan agreements with Saudi Arabia for the purchase of 50,000 tonnes of urea and modernisation of the University Teaching Hospital (UTH)totalling US$40 million
K 162.7 million -April 15 -Government has signed a US$29.8 million loan agreement with the World Bank to enable small scale farmers improve agriculture productivity and boost food security.
Mr Sata said consistent with an analysis conducted earlier, the International Monetary Fund (IMF) Debt Sustainability Analysis (DSA) conducted in 2012, indicated that Zambia’s debt was sustainable. Mr Sata said the country’s risk of external debt distress remained low as all debt indicators were below the indicative policy thresholds throughout the projection period of 2012 to 2032.
[pullquote]The International Monetary Fund charged that Zambia’s current fiscal stance is clearly unsustainable and warned that government debt would rise to over 50 percent by 2018[/pullquote]
However is October 2013 the International Monetary Fund said Zambia’s medium term growth outlook is uncertain due to significant policy uncertainties.The International Monetary Fund charged that Zambia’s current fiscal stance is clearly unsustainable and warned that government debt would rise to over 50 percent by 2018 from the current net present value of about 30 percent of GDP in 2013.
The President also emphasized that all the borrowing done so far, had been for the improvement of the country’s infrastructure, which he said would ultimately boost economic growth, increase revenue collection and improve the living standards of our people.
“This Government has never borrowed for consumption but only for capital investment. With this, I can assure you that Zambia will never be same after this infrastructural revolution, since more areas and regions are opening up for trade and investment thereby enhancing the trickle-down-effect to all our people especially those in rural areas.”
It irresponsible for Sata make any such statement. Everyone has got to worry about debt, if not us then generations coming will have to worry about the debt. The debt racked up by the PF is embarrassingly high, such that they have chosen not to address it. By the time Sata leaves office, taxes will hit 50%. All taxes have increased; Toll gates, duty on airtime; to mention a few!
I’m not a fan of IMF but even they have warned us about our debt.Didn’t Sata read the 2013 report? Why is he still stuck on 2012-the year he was basking in RB’s sucesses. You get a US$250million loan and we should not be concerned because someone hibernating in Statehouse says so?
Very soon the lenders will stop lending money to Zambia. The result of that will be to print more money like what Zimbabwe did.
Our Kwacha is destined to be Tissue money very soon. By the end of 2014, $1 will be K12.
I told you ba ngwele imwe
Don’t worry about any debt
Sata mwaume. Now I will vote for him 200 percent
Abaume baume.sata forever
Nice touch to speak directly to the public, the content is another matter. Obama does it very well. Now for the rest of Zambia’s governance systems to follow into the 21st century…
Wait, Mr president this is not your country
You are just a temporal Power monger of this country.
As stakeholders we have the right to question the debt, in the country.
You should not be defensive but rather assure your people how you plan to
repay and use the monies
Very dull
Thanks
Sata is bed ridden most of the time. So what time has he got to interact on Facebook. What a ploy to blindfold novices in the game of politics!
To be honest I think Sata is now too sick to engage the public directly thats why Chella et al decided to put him on facebook so that they talk on his behalf to mislead political novices into thinking the Sata is ok.
Nowadays info from state house says that Sata is bed ridden for most of the day and only wakes up when there is an issue to sort out like swearing in his fellow idi.ots.
Can someone please advise me as to how I can make cultivation of sweet potatoes in this country profitable? I’ve tried but without much success.
Does he even understand what is written on his facebook account by some fake economic technocrats from the MOF?
Personally, looking at where the money is going, i have no problem. If this money was going to paying salaries, workshops and other recurrent expenditure, i was going to have a problem. The development that will arise through this borrowing will definitely change this country. All what we need is an improved ACC arrangement and other expenditure control systems.
Maybe it is not a bad idea for him to have a platform to preach online. It removes the “I didn’t say that” factor from the equation. My only hope is they fall in love with the online stage and want to get faster and put up more stuff resulting in them allowing Zed to go from slow motion Internet to something that resembles easy access. Their content is their content. People read widely and make their own minds so once again welcome to the Internet which also welcomes those playing with loaded guns…
Those Facebook postings do not reflect Sata’s language! This is Chellah’s Language. People are interacting with Chellah instead of Sata on Facebook, and Shamenda goes on to praise it saying it’s better than a press conference!!!!!!
I was wondering when l ready the story then l recall sata can not articulate .please Zambian do not be fooled sata is the one answering your question on Facebook.we continue registering our displeasure on watchdog.namona l agree with you on this one
Sata should be ashamed for bragging about getting in touch with the nation via facebook. In a country with only 20% of the population having access to the internet, how will the rural communities have access to his fb page to know what’s happening?
This is a KINDERGARTEN GOVERNMENT! Even the IMF has echoed the obvious “Policy uncertainties”, which overshadow a clear projection of the times ahead.
Afyunya data umufyashi.This is nice.
Only a fool would believe that thats the head of state making postings on FB, the language uttered there is not his, but most importantly, I doubt any world leader spends time writing on there FB page, I would imagine that role is more suited to an aide to do it on behalf of the leader, and also to gauge and monitor the mood among the citizens and then relay back to the President. In any case I would be worried if he was spending alot of time on there which he would rather be using to carry out the duties we have allotted him, solving real issues in the real world..
On this one I better listen to IMF’s report than to Sata….
Yeah you right mate! Been there before with KK. He was the only one who could see light at the end of the tunnel! Trouble is, he left state house without getting to end of the tunnel.
So it shall be with the incumbent President. Lets be serious for once, please.
Wauw! So it’s true his page is actually functioning? Sorry @ Wanzelu I have noticed how much you are panting hoping it doesnt open… Hihihihihihihi! Otherwise,never mind about those numbers raising the thumbs up button, what matters is that atleast, people can ask and interact with him or Chellah, at the end of the day, he will absolutely get to read one or two things, better than tunning in on LT, ZWD or dirty Tumfweko!
Now about that debt, I would like to know how much we’ve paid back so far and what is being allocated to be paid back this year, then can I only take a breath!
Oh and another thing…… are we going to borrow more this year? if so how much and what is the limit?
@Cindy
Ok I have now seen it.
I only hope that every government workers’ family has not been coerced to sign up and give Sata thumbs up for of losing their jobs. The truth will come out soon if thats the case.
But still we need press conferences so that he answer real questions.
I fear the day when likes will substituted with messages of discontent and ridicule. If that days comes he will close it and block face book in Zambia and give a reason that its being used to insult the president forgetting that it is a public forum where any one is free to exercise his freedom.
Lets wait and see how this facebook “likes” political competition will unfold.
Those of you on facebook please remind him we need our new constitution without fail or ELSE ??????
All best Mr…
Sata using Visa-vis? Yaba abene George Chella at list make it look realistic
I think he knows what he is talking about!
Name suggestions: CindyChumbu, Cindyblond. Anythings that will help us tell apart from the far much wiser Cindy
My friend every debt carries a risk.
@CNP,
That was actually a test for LT, if you go a step upwards, you will find my real opnion on this topic which unfortunately was not posted for unknown reasons, then I tried to test LT by posting what you have just responded to and it was posted in seconds faster than a JUmbo Jet. So there is your real wiser Cindy on top!
Please can this man hold a full press conference to address the nation on the state of affairs? Posting his face saving shallow analysis on facebook isn’t helping, in a country where 80% of the population have no access to the internet. The rural communities that make up the largest voter population are cut-out from information. In Zambia, access to the internet is still considered a luxury because of the lack of a strong ICT policy by govt.
Zambians have time to look at Kenya when jomo kenyata was sick,kanu was full of relatives and trusted friends,they ruled Kenya in the name of president kenyata,till somebody leaked information that the president was dead.The same is true to my beloved country,kabimba and the cartel are the ones running the affairs of Zambia,why winter can’t be dropped?why multiple appointment,transfers even before taking your new role,why panics on Gbm?those praising sata are factually praising winter and the cartels.mcs is history.
@Chikubabeniso
I equally thought so.
Such allegations are dangerous no matter what the case implies! At the end of the day, the truth will always rule and culprits face the law, delay does not mean failure!
@Wanzelu
@Chikubabeninso
Last week the nation witnessed Bwalya Ng’andu and others take oath of office b4 the head of state. Are you saying oath was taken b4 a ghost? Let’s be serious guys.
40 years ago, Chiwanda was minister of finance and led Zambia into huge debts and he is again making the same mistake he made 40 years ago.
Doing the same thing and expecting different results, these PF chaps are bent on proving Einstein and Common Sense wrong
True, he is bedridden most of the time. The situation will get worse as we go on and so the startegy is “you don’t see him personally but he answers all your questions on facebook”. Ruling a nation through Facebook.
With that kind of thinking, you can see his intention is to continue borrowing until the debt becomes unsustainable. What a mess Zambian is in.
@wanzelu
You need some bit of education on how govt operates.sata is head of govt and therefore all ministers and civil servants are operatives of govt,and sata can use any of these operatives to answer citizens concerns on governance issue on sata’s fb page.what is important is that people’s concerns are and questions are answered by those whom sata has entrusted to handle such matters.it will be a fallacy and naive to expect data to answer such concerns without help from his technocrats.Even Obama get help from his Advisers.View sata as ibuteko,not as an individual then you will understand the rationale behind this Facebook account which the president has opened.But of course i know people like you will always want to criticize from the terraces,you think football in your head.
Thats very true. But difference is that serious heads of state like Cameron and Obama, and rest of them including the North Korean one engage the public through press conferences not face Book. The issue that casts some doubt on this facebook saga is the fact Sata is using it as an alternative to press conferences for fear of answering pertinent questions about the state of our economy and where he wants to take it.
The problem of keeping the citizens guessing is what is worrying most citizens.
I have been advised that people ONLY like nude girls on Facebook, dead bodies and some criminals shot dead. May that can explain the huge likes recorded on some one Facebook page. just thinking.
“Perception, threshold, non-concessional” I can assure you that that was not composed by MCS. Can the real author come out so that I can give a proposer analysis knowing the IQ of the actual person who posted the statement.
That is true! These are VERY BIG WORDS for a std 5.
For sure the real Sata does not understand what the mean!
Afyunya data umufyashi.This is nice.
LUAPULA PREMIER IS A PhD RESEARCHER & HOLDER (URBANISATION). NOT A PARTY CADRE. SIMPLY SUPPORTS THESE NEW ‘UNEDUCATED’ AFRICAN LEADERS TO ACCOMPLISH THE INITIATIVE THEY’VE UNDERTAKEN: MASSIVE INVESTMENT IN INFRASTRUCTURE IN THEIR RESPECTIVE COUNTRIES.
WHY SHUD ZAMBIANS WORTH THEIR PRIDE BE MOVING AROUND WTH SHOE BRUSHES IN JACKETS BECOS OF DIRTY ALLEY WAYS? 50 YRS AFTER INDEPENDENCE!
ELSEWHERE IN AFRICA, CARS ARE WASHED AFTER 2 WKS. IN ZAMBIA, CARS ARE WASHED DAILY! WHY?
IS IT BECOS OF OUR ABUNDANT WATER FROM TROPICAL RAINS? WHY SHUD WE LET MADALAS LIKE DOS_SANTOS, ZUMA, MUSEVENI ETC SUDDENLY DEVELOP SO MUCH INTEREST IN INVESTING SO HEAVILY IN OUR EDUCATION, ROADS & BRIDGES ETC WHILE OUR TEEN PRESIDENTS SPEND THEIR TIME AT BUFFET DINNERS?
Mwaiche Mushota I am impressed with your reasoning , please keep it up. Is it really you?
WE all know that these statements are written by other people. I think we are fools.
KINDLY, APPRECIATE MY ADMIRATION FOR YOUR SUPPORT.
I ALSO TEND TO AGREE WITH MOST OF MUSHOTA’S INDEPENDENT THOUGHT.
BUT BE INFORMED THAT THE PREMIER IS MALE, MUSHOTA IS FEMALE!
ANY STATEMENT THAT LACKS PALA WORD IS NOT BY SATA.WE ZAMBIANS ARE TRUELY STUPID WHERE CHELLA & FRED ARE TALKING AS PRESIDENTS THEN WE SAY THANK U SATA.
It is us the youth who will have to repay this debt when these people are long dead.
the best time to worry and act is when somebody tells you not to worry.
Who do I listen to the I.M.F or Sata?? This Government is dillusional! People in power are in it for themselves, take all their can instead of sorting out the debt they leave it for the next guy in charge..It’s a borrowing Government rather than a self sustained one..The Chinese are making billions off us but yet we are borrowing
thats the joke of the year please chella stop insulting the president we know he doesnt know anything about gdp or the economy trying to make him sound smart is very insulting to him and his family nit even the pf retards will buy that nonsense let him face reporter’s not va boza ivo thats worse than the post by gay membe
Who is he calling friend? Young immature George Chella had to stop this mediocrity.
The problem with us Zambians be it Public Office, business entities, Newspapers and forums is that we do not know how to use social media properly. ..there are short courses to update ourselves.
*…has to stop. ..
@[email protected]
I WOULD RATHER MY KIDS PAY FOR THEIR DECENT UNIVERSITY EDUCATION AND DECENT ROAD NETWORKS BUILT ON BORROWED MONEY THAN FOR THEM TO PAY FOR TEENAGE PRESIDENT’S (CHILUBA) DESIGNER SUITS AND SHOES OR FOR THEM TO RENT AN APARTMENT FROM THE PRESIDENT’S GIRLFRIENDS OR SONS.
THE TIME TO BORROW IS NOW, WHEN WE STILL HAVE SOME COPPER LEFT UNDERGROUND.
TOMORROW COPPER WILL DISAPPEAR, AND THE INTEREST RATES WILL BE AT THE MAXIMUM, 50%, WHEN NO ONE WILL EVEN BE INTERESTED IN GIVING YOU THE EURO BOND. PLEASE ASK TANZANIA!
I understand where you are coming from however, let us borrow sustainably. Last time we borrowed this much, Chikwanda was finance minister and look where that took us.
At the end of it all, 10 to 20 years from now, the ones who borrowed this money will be dead. We are the ones who will be left to pay it off. So we have a right to advise our leaders to keep that in mind.
Also, it would be better if the money was invested in money-generating ventures, such as industry, manufacturing, export, etc.
#OneZambia
The President also emphasized that all the borrowing done so far, had been for the improvement of the country’s infrastructure, which he said would ultimately boost economic growth, increase revenue collection and improve the living standards of our people.
Yes, if building himself a retirement house “with immediate effect’ on assuming office is an improvement!
—-For the rest of you stupid Zambians that voted me into office, go back to your cardboard shacks!
Perhaps embracing the new PR machine will lead them to also be frustrated by Internet speeds in Zambia resulting in an unexpected bonus for all… Smile
Ba LT – the posting on Facebook does not day ‘Dont worry about the debt. Why are you being so negative lately? The pictures of Sata you are posting looks like you want people to view him in a certain light. Whilst I dont agree with some of the things the PF govt is doing, distorting information is just scandalous and unfair.
@wanzelu
@mushota
Today i have respected your reasoning. You are sport on the issues,its our country,we need no fear if we mean well for zambia.i have no political agenda to make saya or pf fail,but let us call a spade a spade.we need to stop this massive borrowing for the sake of our children in future.its is always wrong to spend the money you don’t have and are not clear how you are going to pay back.The ministries of finance,should tell the nation how we are going to pay this debt we are contacting on daily basis.Mr shamenda Facebook cannot replace press conference. If your master can answer our concerns on Facebook he can do better at a press conference.
@jox
Thanx for acknowledging that important fact. See what is happing to Greece today. Greece has earned it self a name sick man of Europe because they over borrowed and spent the money without proper assessment of the economical value of some of their capital projects.
What Sata PF should have done the past 2 years is widen existing inter city roads, renovate learning and health institutions and expand capacity, build more houses for the councils to lower house rentals which are taking a huge chunk of both the government and individuals workers’ income and improved agriculture to avoid the shortage of maize which has resulted in mealimeal price increases.
Unfortunately what is happening now is like a man maintaining a new girl friend while neglecting the wife.
PF is…
More PF lies from a government of liars and cheats!
You F00LS, do you really think Zambians are so dull? You are an insult to the Nation!
We know you as liars, your lies do not fool anyone.
Spending what you haven’t earned is never the most prudent thing to do, especially when you can’t even account for the money properly (Auditor General’s report suggests this).
We started out with a president who had no brain. Now we must deal with a president who has neither a brain nor a face and in cyber space! Did we not bring this upon ourselves through the ballot box?
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
Listen, President Sata’s detractors,
PLEASE READ ABOUT OTHER AFRICAN COUNTRIES WHO ARE IN SIMILAR SITUATION AS OURS & EVEN WORSE TO APPRAISE YOURSELF ON HOW MUCH THEY ARE BORROWING IN THEIR QUEST & HASTE TO UPGRADE THEIR INFRASTRUCTURE.
IF YOU ARE YEARNING TO CARRY OUT SIMILAR INFRASTRUCTURE DEVELOPMENT, WITH THE SAME INTENSITY & MAGNITUDE FROM TAXES ONLY, THEN YOU ARE LIVING IN DREAMLAND!
PLEASE ASK LEVY OR CHILUBA AT MANDA HILL OR RB, WHY THESE GUYS COULD NOT EVEN BUILT A SINGLE UNIVERSITY DORMITORY BETWEEN THEM FOR OUR EVER GROWING YOUTH POPULATION!
IN MY YEAR, EVEN DIVISION 3 GAINED ENTRY TO UNZA. TODAY DIVISION 2s DON’T ENTER UNIVERSITY! WHY? ARE YOU TELLING US TO TELL AN OLD GUY, SATA, TO STOP BUILDING MORE UNIVERSITIES FOR OUR CHILDREN? YOU AIN’T SERIOUS!
We’re borrowing ourselves into a debt trap and this Sata man who can’t even manage his own investments well is the reassurance we need? God please save us from these blind PF incompetents.
Is Sata is even alive, that picture looks like he’s a dead man walking with electronic parts in him to make him do standard movements while the real people running the Government control his moments haha
Now a faceless, heartless and brainless president scared to face a non-Facebook audience that helped put him at plot ONE and yet still surviving on less than one dollar a day; is out to impress a Facebook audience that has more than change to spare on luxury and cares less about casting ballots.
Mr. Sata now can no longer face the marketeers and street dwellers who had voted and looked-up to him as their Messiah, a miracle worker who, in 90 days was going to put more money in their pockets and alleviate all their problems.
Due to his many broken promises, Mr. Sata no longer can face an average Zambian. He has a face instead, for an audience on Cyberspace that is looking for entertainment and a comical show! Talk about biting the finger that feeds you!
‘If wishes were horses, beggers would ride’. Zambia should learn to borrow wisely. We are already drifting into a debt trap, within a couple of years under PF!
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