AGRICULTURE and Livestock Minister Wylbur Simuusa (centre) flanked by his deputy Lackson Kazabu (left) and Permanent Secretary Julius Shawa during a 2013/2014 Crop Forescasting Survey media briefing in Lusaka
AGRICULTURE and Livestock Minister Wylbur Simuusa

The Zambian Government is considering issuing another international bond specifically targeted for the agriculture sector.

The latest Eurobond is earmarked to be in the region of US$ 1 billion and could be issued before the end of 2014.

Agriculture Minister Wilbur Simuusa confirmed that his Ministry is working closely with officials at the Ministry of Finance to prepare paper work for the deal.

Mr Simuusa said the Eurobond is relevant because it will specifically deal with financing challenges in the agriculture sector.

He said the past two international issuances have mainly targeted large infrastructure projects such as roads and bridges but that this new bond will be agriculture centered.
“We want something specific to agriculture. All the two Eurobonds have mainly gone to ZESCO, Zambia Railways, DBZ and the like and the agriculture sector did not receive much and so we are hoping that this Eurobond kicks off so that we can have our own financing for agriculture development,” he said.

Mr Simuusa said there is a huge financing gap for agriculture in Zambia as outlined in the National Agriculture Investment Programme (NAIP) which needs to be closed.

Zambia has over the last two years issued two international bonds on the international bond market ranging from US$ 750 million and US$ 1 billion.

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38 COMMENTS

    • We the Zambians will have to repay the debt.Is there another way we can let our voice be heard that we do not want anymore debt apart from complaining on blogs? anyone with higher intelligence than the rest of us who can suggest something workable? We can not let careless decisions be made at our detriment.

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    • This is it! These chaps are fund raising for 2016 elections. These chaps have criminal minds, and are a very lazy bunch. If their first resort is borrowing, then people must get seriously worried. These are pure extortionists.

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    • At this rate there will be a Eurobond for every sector of the economy. Next will be the Health sector to prevent all this flight by our politicians to other countries like Isreal for medical attention. Looks like South Africa is now not good enough and the “apamwamba” are now opting to fly further afield.
      If only the people of Zambia were given a say before commiting to such huge debts.

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    • The first Eurobond should have been targeted at agriculture than some of the infrastructure development that has no potential whatsoever to contribute to the repayment of the loans.

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    • Every ministry will now opt for its own bond even as BOZ effects it’s 7% hike in interest rates, the first in the world by such a margin! Everything is going up. How will the economy tick with interest rates of 28%++? Why are Zambians so unfortunate? They say they want to limit and restrict importation of Japanese vehicles and encourage Zambians to buy new. How will that be with such devilish interest rates? I think Zambians are still asleep!

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  1. This borrowing its killing us,please government think twice.Euro bond for ZR you failed to account for it now it is agriculture.

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  2. This is total madness of PF govt. these chaps have run out ideas. Please, restructure your govt and set your priorities right so that you make use of domestic resources rationally and wisely. Your continuous borrowing is a sign of total failure. It is not because there is inadequate domestic resources to finance the budget, NO! Your PF govt is top heavy, wasteful, lacks planning etc, this is the real problem. Everyday, the PF in power is proving to be the waste mistake, Zambians ever made.

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  3. ” “We want something specific to agriculture. All the two Eurobonds have mainly gone to ZESCO, Zambia Railways, DBZ and the like and the agriculture sector did not receive much and so we are hoping that this Eurobond kicks off so that we can have our own financing for agriculture development,” he said. ”

    Financing for what? Is this even being discussed in parliament?

    These are just more secret backroom deals.

    Any future government should scrap all the debt. This is just more onerous debt.

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    • A future Government CANNOT just scrap this debt. It will have to be paid back WITH INTEREST by our children. Ask Argentina. They are now repaying the money they borrowed 40 years ago.

      This madness MUST STOP!

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    • Argentinia battle vulture speculators:

      (Google: larouche 31053)

      Argentine Congressmen Tell U.S. Counterparts:
      Sovereignty Comes Before Speculators
      June 14, 2014 | 10:44AM

      A 14-member delegation from the Argentine Congress, representing both government and opposition parties, came to Washington, D.C., this week, to organize support for Argentina’s battle to defeat the speculative “vulture funds,” on behalf of the common good of their nation, and all nations.

      “What is at stake here is not only the role of Argentina,” Dominguez said; “what is also at stake is the role of sovereign States in the face of the speculative international financial system. The defense of States as institutions which ensure the organization of peoples is not a minor issue. “

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  4. Kenya just raised $2bn in its debut int’l bond last week and actually got bids for $8bn.That must have made GRZ lust for more debt and recklessness.

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  5. For as long as half of these monies do not go into workshops to strategise on how the program will be impemented and indentifying which areas these programes will be implemented by who and how the distribution and whatever else…….blah blah blah to much jurgon.

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  6. Sata has started projects that can never be completed even the next generation no matter how much Zambia borrows. Sata has always been that SURGEON that opens up patients but fails to stitch back the operation wound. This time he has deliberately damaged Great east road and left it like MERZAF flats.

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  7. Awe elyo lwanya,who will pay this back this money? At what cost to the economy? Because the next govt will be telling us PF did the damage. Imagune a country whose currency cannot stand on its own ,it is to be supported!!!

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    • ” Imagune a country whose currency cannot stand on its own ,it is to be supported!!! ”

      I think this is true all over the world now. You have Quantitative Easing (Investopedia: “An unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply.”), you have the ECB introducing negative interest rates for banks, forcing money out into the economy.

      Neoliberal economics (privatisation, deregulation and ‘free trade’) is failing and is destroying economies all over the world, where ever it is being applied.

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  8. Sata and his PF are stealing our children’s future right in front of our eyes!

    An irresponsible bunch of crooks and conmen like this cannot be allowed to destroy Zambias future. They must be stopped NOW!

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  9. this is stupidity of the worst kind. do they ever think of the capability of our economy to pay back these loans? to be led by an illiterate as a president is agony. people of zambia next elections(this year) choose a person who can read the world economic trends correctly, not someone who has even failed to manage a church

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  10. They talk as if they have a road map in place but all no…they said the same thing when the removed subsidies that the saved monies will pumped into this sector…lies after lies by these empty tins. Let a responsible government with a plan borrow not these reckless tins.

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  11. I’ve read all the comments so far and there is not a single one in support of the PF carelessness. I am waiting to hear from Saulosi.
    The problem goes beyond the borrowing of these colossal sums of money, it is also about how well they are accounted for. Diverting of some of these monies to personal off-shore accounts cannot be ruled out. What is the story about the other Eurobond which Sampa was playing with on his Facebook?

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    • Its common sense + monetary prudence = 100% support.
      GRZ ,future debt slavery + recklessness = 0% support.

      Got to love the unanimity of opposition to this GRZ debt slavery.

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  12. Ba kapala, and you call development on the extent of Debts? Ba Pweletetetete Fuuuuu. We can not count this because you have not given us the plan of how to maintain and pay back the Nkongolo. This is bad plan guys.

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  13. We are in sh it. INTEREST RATES at the bank have gone up for you common man borrowing meanwhile they continue to be reckless. I see hyper inflation on the way. Do these people have n education? Kaponyanomics at work. We really are in sh it.

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  14. This is what happens when the president is busy sleeping in state house by the time he wakes up zambia will be sold to the highest bidder.
    @The London Eye Saulosi is paid by pf so he will never be objective i feel sorry for him with his friend Mushota.

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  15. This is Very Very bad for Zambia, this is surely reckless borrowing. Putting us into a debt trap.

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    • Were is Gen,saulos and nshilimubemba to comment?You are defending a party that is selling our souls.

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  16. Its will be wiser to consider issues of capacity the famous GDP numbers, the maturity risk on already contracted,the quality of revenues in the sector to support, the increased speads on yields bearing in mind that yields may increase as investors factor in the already gotten as risks characteristics on bonds increases with additional

    Above all consideration of a pass-through to farmers as security or guarantee to back the same need to be carefully and well gotten right otherwise revenue lines might be affected as a general support towards the repayments A rollout of sectors in balanced might be appropriate given the limitation placed and the rule of economics

    Its a good thing if sectors carefully planned and revenues to support…

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