The dam wall at the Kariba North Bank Power station
The dam wall at the Kariba North Bank Power station

Chief Government Spokesman Chishimba Kambwili has defended the PF government over criticisms regarding the mounting debt stock for Zambia.
Mr Kambwili told a weekly media briefing at his office that Government is being prudent in the contraction of all external loans.

He said this following cabinet’s approval for the contraction of two loans worth 114 million US dollars from the World Bank and from the African Development Bank for the rehabilitation of the Kariba Dam wall.

Mr said that the rehabilitations of the Kariba Dam wall will be undertaken by the Governments of Zambia and Zimbabwe and facilitated by Zambezi River Authority.

‘First of all, there is no lender who is going to lend to a borrower who has not capacity to pay. This is just simple politics by detractors mainly the opposition. We are a responsible government and we are borrowing within the limits for us to pay,’ he said.

Mr Kambwili added, ‘When we a contract any debt, there is an assessment conducted to see whether we are able to pay back because borrowing has to correlate within the GDP. You know that the World Bank and the African Development Bank are very strategic and well experienced in the area of finance and they cannot give loans to a government that cannot pay.’

He continued, ‘The Kariba Dam is jointly owned by Zambia and Zimbabwe and we did a joint application for a joint loan, the World Bank refused because Zimbabwe has no capacity to pay, so the Zambian Government has taken up the responsibility to get the whole loan on behalf of Zimbabwe and we will lend that money to the Zambezi Water Authority because the Zambezi Water Authority has the capacity to pay. This is a sovereign loan which has been guaranteed by the Republic of Zambia, so there is an assessment done before any loan is contracted.’

the World Bank refused because Zimbabwe has no capacity to pay, so the Zambian Government has taken up the responsibility to get the whole loan on behalf of Zimbabwe

The Chief Government Spokesman has since assured the people that government is within limits in its borrowing.

‘People might talk about these borrowing but look, there is no development that can come without borrowing, who among us can build a house from a salary, for everybody to build a house you have to build. I don’t think if we start paying in the next 15, 30 years, we will be paying with a good heart knowing that this is the infrastructure we received from the borrowing,’ he stated.

At the same briefing, Mr. Kambwili disclosed that Cabinet has contracted a loan amounting to US$15,500,000 from the African Development Bank to support the implementation of the Transforming Rural Livelihoods National Rural Water Supply and Sanitation Project Phase 2 in Western Province.

Mr. Kambwili said 16 districts are expected to benefit from the implementation of the water and sanitation project which will contribute to poverty alleviation and improved health of Zambia’s rural population through the sustainable access to water supply and sanitation.

He also announced that Cabinet approved the appointment of new board members of the Zambia Revenue Authority board after the expiry of the three year tenure of the previous board members.

Mr Kambwili said the names of the new board members will be announced by the Minister responsible in due course.

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83 COMMENTS

    • Just how will you pay back all these kaloba you are getting mister minister Kambwili

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    • We know you PF minions. We have heard such lies from the likes of Sakeni,Kapeya, Katema and now Kambwili is doing the same same.

      Fact:

      What eve PF says , just know that the opposite is true.

      Zambians need not to listen to you but look at the economic indicators such the exchange to know that PF is a clueless and reckless government.

      The Kwacha is fast falling against the pound and dollar. Its shocking to hear the PF minions attributing the fall to global trends and yet, they fail to explain why the pound and the dollar continue to strengthen.

      Is it by God ‘s design that Dollar and Pound should always be appreciating while the Kwacha and a few African currencies keep falling? NO.

      The fall in the kwacha has everything to do with clueless PF. No need to pass the buck.

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    • If Zambia was in capable hands like the HH team,things would be better because these guys would have looked at the reasons why the Kwacha keeps falling against the pound and dollar and explore solutions by looking at why the Dollar and pound remain stronger currencies.

      HH during the assignment interview he talked about economic competitive advantages which are unique to each region like Zambia should be explored and tapped into in order to compete favourably on the world market and get the economy performing well so as to boost the currency.

      Now that all the Eurobond is finished and the PF has nothing to prop up the kwacha with, Zambian Kwacha is surely headed for Zim dollar levels.

      Its inexplicable why Mwanawasa got the Kwacha appreciating at the time when the Europe was in…

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    • ‘The Kariba Dam is jointly owned by Zambia and Zimbabwe and we did a joint application for a joint loan, the World Bank refused because Zimbabwe has no capacity to pay, so the Zambian Government has taken up the responsibility to get the whole loan on behalf of Zimbabwe” Said Kambwili.

      PF is a bunch of jokers for sure. Zimbabwe still owes Zambia millions of US dollars for the construction of the Kariba dam which Zimbabwe has refused to pay back up to now despite mining diamonds and selling them to fatten Mugabe and his stooges ‘s pockets.

      Why Zambia contracting debt on behalf of Zimbabwe just like that. If world bank says Zimbabwe has no capacity to pay, does Zambia have that capacity with Cluesless PF at the helm of power sure?

      PF Lungu and all PF minons are just jokers.

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    • kambwili kambwili kambwili… please please please na ku papata,,,, being information minister doesnt mean you are the one to manufacture news, why do think ABC is not opening his mouth to say anything over this kaloba issue??? dont you think his mouth is full??

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    • Dr Mbita Chitala said; “They have not finished.” Mr Kambwili or is it Kapalu, Kangimbu,Ka-jaamba, Kahuma or akalukasu, irresponsibility is borrowing to pay school fees for your neighbours’ child when yours can not go to school and thereafter expecting your child to pay the lender.

      May God deliver you.

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    • BREAKING NEWS!!!
      RB WANTS TO CONTINUE IN 2016 AS PF PRESIDENT AND WANT PIPO LIKE KALABA,MWILA AND THE MASTER PLAN XAVIOR TO BE BINNED SLOWLY .
      MPEZENI AND LUNGU ARE FOR THE IDEA .
      THATS WHY MWANAMBALE WAS DISCARDED AND PUT THEIR OWN SAMUEL NKHOMA .
      WATCHOUT
      THESE APPOINTMENTS ARE COSMETIC BUT BENA RB HAVE THEIR OWN PIPO IN THE PIPELINE .
      HENRY BANDA IS BACK CONTROLLING LUNGU.
      LUNGU IS JUST A DOORMAT
      BA CHISHIMBA FEEL SORRY FOR THIS BUFFOON

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    • PF UU DIDNT KNOW WHAT HIT YOU 3 WEEKS PRIOR TO ELECTION DAY ,YOU WERE BUSY PARADING RB THAT MANNA FROM HEAVEN HAS COME TO HELP WITH CAMPAIGN DEAR ME OH DEAR ME .
      LUNGU SOLD YOUR PARTY
      LOOK, SEE AND ACT .
      RB IS BACK WITH A BANG WITH HIS SON HENRY BANDA .
      MWALINGILILWA BANE BA PF AND THATS THE TRUTH AND THE TRUTH WILL HURT AND PAIN YOU .

      LUNGU ,MPEZENI AND RB AGREED THAT THEY HAVE TO CONTROL ZAMBIA EASTERNERS TO RULE FROM NOW AND BEYOND THATS THE PLAN .
      BENA XAVIOR,KALABA ,MWILA YOU WERE BEING USED SOON BEFORE 2016 YOU HAVE NO SAY AT ALL .
      LOOK ,ASSESS AND ACT !!!!
      TIME TO GET RID OF RB AND HIS CROOK WAYS .
      LUNGU IS JUST A SNAKE IN THE GRASS

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    • IF ANYONE THINKS SUSPENSION OF THE MENDING OF KARIBA DAM IS THE WAY FORWARD THAT PERSON MUST BE OUT OF HIS/HER HEAD. FIRSTLY, DO PEOPLE KNOW WHAT WOULD HAPPEN IF THE DAM COLLAPSES, THE ECOLOGICAL EFFECT, THE LOSS OF ANIMAL AND HUMAN LIFE? EVEN IF YOU ARE IN OPPOSITION PLEASE THINK BEFORE YOU YAP. THAT BORROWING IS IN ORDER JUST AS THE BORROWING TO DEVELOP INFRASTRUCTURE.

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    • PATRIOTIC PARTY WERE TOLD THAT PLEASE DONT EMBRACE RUPIAH BANDA ,YOU ARE BRINGING CHAOS IN PF .LOOK AT MMD NOW .WHO DO YOU THINK IS THE CAUSER ,ITS OTHER THAN RUPIAH BANDA .
      XAVIOR CHUNGU ,KALABA,KAMBWILI,MWILA PF IS BEING RUN BY RB,HENRY BANDA AND MPEZENI .
      LOOK ,SEE AND ACT

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    • What Kambwili doesn’t know or is ignoring is that western governments and their institutions like World and IMF are there to make money for the owners and therefore their decisions are not in the interest of Africans but the owners. The more Africa becomes indebted, the more they are able to control us and get our resources next to free. It is all about our resources and very little to do with helping Africa develop. That is what even our own brilliant lady Dambisa Moyo argued in her Dead Aid Book.

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    • …the World Bank refused because Zimbabwe has no capacity to pay, so the Zambian Government…….

      The above statement in itself alone is enough to show that PF govt is not responsible govt. How do you borrow on behalf of someone who has no capacity to pay? PF you are borrowing in order for our children to pay for Mugabe’s debt. Really what kind of economics are you doing. Zimbabwe to date has not paid back the initial amount they got from Zambia through similar arrangements. Really Hon Kambwili, which politics or economics do you practice in the 21st century?

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    • So, Kambwili, your capacity to pay is dependent on the validation from the lender? You cannot make your own assessment?

      Twasanswa!

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    • COUNTRY FOR SALE.
      Tender closes shortly before 2016 polls.
      Any electronic and/or late bids will not be accepted.

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    • @gun down when you are in partnership and your friend has no capacity you have three options to split the project, stay as you are no development or sale and share the money.. We went for the fourth option, we only guarantee the loan on behalf of Zambia river authority the company will generate power and sale to recover our part of the loan, repairs are an emergency don’t joke be objective..

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    • @2.4 Chinyama,

      If you are going to lend your neighbour some big money, especially money you yourself borrowed from someone else and staked your children as surety, make sure you in turn get COLLATERAL from your neighbour for your children’s sake. This does not have to be in cash.

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  1. Dear Editor, hide my ID as I have national interest at heart.

    Title: The Arms illegal deal is an international insult to legal terms in ARMS selling policies.

    The recently night negative meetings of president Edgar Lungu, Rupiah Banda, Henry Banda and MCK on the arms deal on behalf of the State is an insult to the people of Zambia and that of the DRC and the entire region of southern Africa and the world at large.

    No manufacturing firms of arms which are owned by the sovereign governments across the globe will allow middle men to purchase arms, arms are only purchased by government to government deals, the only arms that are purchased on the streets are considered as non-war weapons but security weapons which can be bought by any cash pocketed individual not in bulky but by the…

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    • This was expected , RB +EL =problems for mother Zambia .Hope the Zambians have not forgotten about the mobile hospitals, the beneficially was RB and friends.

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  2. Just wondering: there have been some postings recently suggesting that Zambia may consider borrowing from lenders who may offer lower rates so that Zambia pays back loans whose repayments have fallen due (so as to avoid breaching repayment agreements). Now more loans are coming again. We are even boasting that we are borrowing on behalf of Zimbabwe. Is this what God can offer to us or is it satan! I can not understand this. If it is satan, I command him to leave Zambia alone. May the blood of Jesus cover the whole country.

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    • Not to worry, the blood of Christ already covers our country.

      Believe me, there shall come a time when the wealthy countries shall begin to flee to the poor countries and the lender shall become the borrower. As the Scripture says: the ploughman shall overtake the reaper and the downpresser shall be the downtrodden. (Amos 9:13).

      Also: “the needy shall not alway be forgotten: the expectation of the poor shall not perish for ever.” Psalm 9:18

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  3. It is never irresponsible borrowing if it goes in your pocket and others pay it back for you!!!! Keep it up!!

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  4. PF ministers are shockers, Zambia has now began to borrow money on behalf of other countries. That’s Kambwilinomics.
    How low have we become in the name of power without any idea of running the national affairs.

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  5. That is interesting! Zambia borrowed on behalf of Zimbabwe on the southern border on the Northern border Zambia is accused of contracting in arms deal. On the North Western side Zambia opens trade links with Angola. Internally, the kwacha is getting weaker. OK, fintu ni Lungu.

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  6. If we don’t fix the dam, we are going to be in big trouble. We fix it increase our power generation capacity. We export power. The situation calls for immediate action or we lose badly.

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    • @cnp,

      If you are going to lend your neighbour some big money for whatever reason, especially money you yourself borrowed from someone else and staked your children as surety, make sure you in turn get COLLATERAL from your neighbour for your children’s sake. This does not have to be in cash.

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  7. At 15.5 million dollars for water and sanitation ask him how many water points they will do? My foot if you want to get rich quickly, the first option is roads, second is water. I tell you the guys are the ministry of local government are rich because of these water projects. If you gave me these funds I would make sure not only Western is covered but at least one more province

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  8. The construction of the Kariba Dam was forced on Northern Rhodesia by Whites in Southern Rhodesia who were in the majority during the Federation of Rhodesia and Nyasaland. Northern Rhodesia preferred site was Kafue Gorge. It is unfortunate that we share the dam with irresponsible neighbours. With this experience should not even think of constructing new dams in partnership with Zimbabwe such as Batoka Gorge.

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  9. Mr Kambwili please don’t belittle our intelligence. The fact is that you have borrowed too much money. How can honestly a responsible government borrow money on a weekly basis? You have borrowed just in three years more than even KK borrowed in 27 years. This is irresponsibility of the highest order and please just keep quiet. Well meaning Zambians, let’s form a movement, or whatever you can call it, to pressurise this irresponsible government to stop borrowing money irresponsibly. These guys ‘simply don’t care because they know it’s future governments that will have to pay these debts.

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  10. “First of all, there is no lender who is going to lend to a borrower who has not capacity to pay….”

    Kaponye Economics; of course the country has the capacity to pay back the loan, but at what cost (inflation)? There is an opportunity cost associated with every cent/ngwee/penny used to service the loan; you could have used that money to build a hospital.

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  11. What? Zambian Govt borrowed on behalf of Zimbabwe? And they did this with the full knowledge that Zimbabwe’s credit worthy was proved to be poor by African Development Bank? And they did this without any collateral or surety from Zimbabwe at all?? And Kambili says this is prudence?? Is this a joke or what?
    There is a limit to being stup1d, but this is now beyond stup1d.
    So now my nieces, nephews my friends children and their children are going to inherit Mugabe’s debt? What on earth is going on ba PF Govt?

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    • …Oh my God…even World Bank are saying Zimbabwe’s credit worthy is bad, but PF Govt still goes ahead and lends Zimbabwe BORROWED money, with absolutely no collateral???

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  12. Kambwili you are an *****. I think I should just stop reading any news about Zambia; It’s giving me too much negative energy. I stopped watching ZNBC since beginning of this month and maybe I should completely stop hearing any news about Zambia despite being in the country. This is too much!

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  13. Some of you guys make me wonder how you execute your logic.
    You are surprised that GRZ had to borrow even on behalf of Zimbabwe?
    I see nothing wrong with that, because if Zim has no capacity – do we also fold our arms?
    You sound like a person who has capacity to fix a shared sewer system, but because his neighbor has no capacity (financially) he decides not to fix it too, when in fact he can afford (remember fixing sewer is no luxury at all; its a dire need).
    As a result, the guy (of course together with his neighbor) start swimming in sewer effluent, together with his household (wife and children).
    I do not understand that kind of reasoning, if at all it is.
    Kariba dam is not a luxury, it is a need. If you understand the value of the asset to the nation you would think twice.

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    • What surprises me is that you as a citizen are not surprise that GRZ borrowed even on behalf of Zimbabwe with absolutely NO COLLATERAL. Its either you do not even understand what this means to our future generations, i.e. your children and their children, Or you have no capacity to think in a rational manner long term outside the box, Or you simply don’t care, Or all of the above.

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  14. The Kariba Dam is strategic. There is no way that Zimbabwe can get any money for large scale projects. Any opposition just speaking for the sake of speaking, please shut up. Not all should be talked about. We need the kariba Dam, so find some other political noise. I do not Agree with PF policies a lot, on this one they are spot on.

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    • @Nzelu,
      Clearly you are in over your head on this topic, hence you have lost the plot completely.
      Let me summarise it for you:- It is wrong, immoral, irresponsible, and downright dangerous to your family and loved ones for you to borrow money and then lend it to your neighbour for whatever reason WITHOUT COLLATERAL.

      Now, which portion of above statement don’t you agree with?

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  15. I see that most of us Zambians our emotions are hyper excited.
    When we see or hear about something we are too quick to speak, very often before we give it a thought.
    We utilize every talent that is provided by our emotions and hinder most of the intellect provided by our able brains.
    If you were to take a survey you are most likely going to discover that most of Zambians regret their words and actions after all is said and done.
    This is because of our over-trust on our emotions.
    If you have a patient in the family, needing financial attention for medics, it will be folly for you to say, ‘unless every family member contributes I wont contribute too’ even when you know that other family members are financially handicapped, and you have access to finances including loan facility.

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    • @Iwe Naine,

      I will cut the chase and get to the point. I am sure if you understood what COLLATERAL means, you would have not posted this blog. Did you know that collateral is NOT limited to physical cash only?

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    • You I.diots! We are not against the refurbishing of the Kariba dam but the borrowing of money on behalf of Zimbabwe without any form of collateral at all from Zimbabwe! Wise up u idi.ots!

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  16. The PF are borrowing recklessly because they know they will not be in government to pay back this money.President Lungu; the biggest mistake you made was to give this Kambwili an office; a desk and a microphone; baaaaad error; you should rather have left him on the football pitch and given him a 30 day ultimatum to trim down; LOL

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  17. Zambia will never be the same. It has gone to the dogs or the dogs have come to it. This thing called Zambia was a “mistake”. It shud have been as it was; northwestern and northeastern.

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  18. Spoiled No Nzelu still thinking the buried would have been better for us! Next year instead of putting the buried in a 6 feet hole, we will put them in a 12 feet one so that Galu watchers Z Ltd will know that No MORE!!

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  19. @jamakudi, prophet of doom, Zambia will be the same because we don’t read dogs and we don’t let them visit us or us visit them that is why Zambia is earmarked for success witches and wizards!

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  20. The Kariba Dam has developed cracks and if these are not attended to fast it will fall, who suffers here PF govt? NO its Zambia, so here the govt is right let them borrow to repair the Dam, any sesible govt in zambia’s position would ve done the same

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    • @Makandanyama,

      Please note: – If you are going to lend your neighbour some big money, especially money you yourself borrowed from someone else and staked your children as surety, make sure you in turn get COLLATERAL from your neighbour for your children’s sake. This does not have to be in cash.

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  21. This is what we warned you against ba fee Colour and you called us names,
    ifintu ni lungu , now enjoy yourselves,

    thanks.

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    • You are the fontini. The rest of us are smart. It is a democracy, even though Lungu didn’t get my vote my voice is still represented by my two FDD MPs in parliament.

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  22. borrowing manee just because you can borrow ? we all know the dam is strategic, the fact is PF are just borrowing for everything just because they can borrow.
    Also borrowing based on high copper prices is a danger, copper prices are falling you wait and see

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  23. Ati teti tu votele Hakainde pantu Mutonga, ifintu Lungu, ba makaka, mwala cula and you will be cursing yourselves ba fee colour.

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  24. To all those supporting lending money to Zimbabwe, please read the following and understand: –

    If you are going to lend your neighbour some big money for whatever reason, especially money you yourself borrowed from someone else and staked your children as surety, make sure you in turn as a responsible parent get COLLATERAL from your neighbour for your own children’s sake. Period. This does not have to be in physical cash only.

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    • You are discussing more the implications of the loan than the problem at hand.
      If you knew and understood the importance of that dam, and the state in which the dam is now, and what implications it would have on the same children you are talking about you would have not have focused on the implications of the borrowing but on the use of this money.
      No doubt you have a point, and make no mistake everyone knoiws the point you are making. But to me I think that it would be folly to say until all members assess their capacity fully you refuse to assist a dying family memebr who is in agent need of finance for medics. The problem is that you are looking at one thing, yet you think you are out of the box.
      Thinking is not how well you explain one thing, but how you balance issues.

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    • And remember that Zambia is not necessariry lending this money to zimbabwe per se; but working to addressing the issue which unfortunately affects both sides.
      You dont expect Zambia to fix the dam one side, or is it repairing holes only on the zambian side and leave Zim side – that is as good as doing nothing, you cant do the work halfway.
      The way you are discussing you are no different from a man who has unreasonable siblings who refuse to solve issues at home, and you say because the have refused me too I will refuse. That kind of reasoning I have refused to follow. I havelived in places where some people in neibourhoods refuse to contribute to mend potholes, claiming they pay tax. Those that feel it will be reasonable to fix the problem go ahead to do it, of course incuring a cost.

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  25. Nkongolenomics and Chikwandanomics at play. We are in serious trouble as a nation, with these Kaponyas we retained in power. We will pay dearly for this mistake. Chimbwi no plan re-loaded!

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  26. We are not borrowing recklessly, we are only forgetting that borrowed money must be repaid. After all, we can always try to re-schedule repayments which will cost no more than 2-4% (on top of current rate)!!!

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    • Do you even know what you are talking about? 2-4% of 10,000 kwacha may be nothing, but of 2 billion dollars, that serious money baba

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    • @ peter njobvu

      Do you know the meaning of “sarcasm”?
      You do? Then please read again.
      You don’t, tough lack. Check thesaurus.

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  27. The problem with Zambians is that they are expecting far too much from these PF Chimpanzees like Kambwili, who sees nothing wrong in everything he does, he cannot reflect because he is morally banckrupt. Tell what kind of civilization there is in a man who sees nothing wrong in sleeping with his sister in law, young sister to one’s wife and infect them with HIV as Kambwili did to that girl now married in Kabwe and she busy killing the husband with the viral load from Kambwili

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    • @ Shrek
      Please don’t bring your personal problems here! The issue here is about the borrwings and not who infected who with what atase! Even a chimpanzee would feel offended to be compared to an inferior being like you!

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  28. mwalevotele ba PF,mwamona nomba? the currency is on downward spindle,they have no idea ati ilepone bad… kambwili don’t make make any pronounements,ukulandisha iwe chicarlar

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  29. i want ABC to comment on dis borrowing on behalf of zim.am seeing zambia becoming lik zim in da near future.

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  30. It is really disheartening to come to terms with the fact that this is the calibre of leaders we have allowed to run the affairs of the country. This Buffoon Kambwili can’t differeciate between affordability and cost of the debt. Where as the debt itself may be unavoidable, this government is irresponsible if they secured the funding without cross guarantees from Zim as @Catctus has rightly pointed out. Would this explain the shenanigans betwwen Dizzy and Bob in the recent past? These quacks are mortgaging the country for 30 pieces of silver! And this trend is bound to continue for as long as the so called middle to upper class do not vote. We are being led by Kaponyas. Pathetic

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  31. Even on a micro level as an individual when you continuously borrowing for everything you want to do then you are in an unhealthy economic situation. What are you using your previous borrowing on, because are you not creating value or wealth for yourself because you are just using the money on consumables. Hence you keep on borrowing and not creating wealth or adding value to the money you are borrowing and eventually you will be suffocated by the amount of your debt. Then you start failing to repay your debts your artificial life now starts to change your Range Rover reposed, house reposed to can no longer afford to pay school fees for your children at private schools, you can no longer afford three meals etc.
    This is a very straight forward issue our government is moving the country…

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  32. You I.diots! We are not against the refurbishing of the Kariba dam but the borrowing of money on behalf of Zimbabwe without any form of collateral at all from Zimbabwe! Wise up u idi.ots!!

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