The Ministry of Foreign Affairs has come up with a mortgage financing initiative that will enable Zambian missions abroad to acquire mortgages in respective host countries for the construction or acquisition of properties in order to cut the high cost rentals challenges.
In an effort to reduce expenditure in Zambian missions abroad, Cabinet at its 18th meeting held in July 2015 accepted the recommendation by the Ministries of Foreign Affairs and of Finance to acquire mortgages for the construction or acquisition of properties in missions abroad.
Foreign Affairs Public Relations Officer Dorcas Chileshe disclosed in a press statement released to ZANIS in Lusaka today that an inter-ministerial committee comprising experts drawn from different ministries has since been constituted.
Mrs. Chileshe said the committee has finalised the guiding principles and terms of reference and is currently working on the mortgage financing document.
She further said the initiative covers various options including construction and purchasing of chanceries and houses for diplomatic staff.
She said the initiative would be piloted in a number of missions some of which have already advanced in terms of negotiations with financial institutions that offer mortgages in host countries.
Mrs. Chileshe added that the programme will then be rolled out to other missions.
“It is expected that the initiative will relieve stress on the treasury in terms of paying rentals and generate savings for the country which can be used for other developmental programmes,” Mrs. Chileshe explained.
Meanwhile, government spent K14, 713, 566.13 on rentals alone in the first quarter of 2015.
At the opening of the second session of the eleventh National Assembly on 19th September 2015, President Edgar Lungu directed that the operations of missions abroad be one of the areas on which cost saving measures should be instituted.
Mortgages goes with responsibilities. If you regularly default your payments, banks repossess the property. Govt misses to pay students allowances on time let’s see if there will be a different attitude in paying monthly commitments.
What an ignorant and rubbish statement. How does a Zambian on a 5 year contract at the Zambian Embassy in the U.S, going to pay a 30-year mortgage?
The effective way to reduce costs is to do away with most the missions and positions at most of the embassies. Most them had no value to the economic growth of the country, in fact, they`re just used as corruption conduits by appointing authorities.
VERY GOOD INITIATIVE. THIS ALSO SHOULD SEE MISSIONS ABROAD CONTRIBUTE TO ZAMBIA’S ECONOMY BACK HOME. HOWEVER, PROPER GUIDANCE SHOULD BE ADHERED TO IN ORDER TO ACQUIRE PROPERTIES IN PRIME AREAS ABROAD/OVERSEAS. THIS IS A GOOD ONE AND HATS OFF TO THE GOVERNMENT.
What a St.oo.PID idea from a Fo..olish Govt!! MORE LOANS WITHOUT THE FAINTEST IDEA OF HOW TO PAY BACK!!
It seems their MOTTO is “BORROW TO THE HILT, & SOMEONE ELSE WILL TAKE CARE OF PAYING BACK!!”
IT isn’t cheaper to pay a mortgage than to rent!
First of all , whta has happened to all the properties Zambia has owned in foreign missions??
If this gets a go ahead, they will sell the Zambian Mission Properties to their crooked selves & then seek to obtain new properties!!! This is what happens here, so now they are extending it abroad – where no questions will be asked!!
Vote Zambia FORWARD 11/8/2016!! Vote Wisely!!
#chagwamustfall!!
I thank you!!
Does this mean all along no properties have been acquired? Hmmm! Here is a recipe for pilfering as some properties will end up being sold dubiously and some people cashing on what government has already spent on! A demand for stock taking on existing properties should be initiated as I see properties being sold by unscrupulous individuals at our foreign missions! Zambia has to rescue itself from expenditure it can not sustain thus need to reduce both the number of missions and personnel assigned!
Lets be alert as a door is about to open here for corruption and all current properties will vanish!
SOME PROPERTIES WERE ACQUIRED LONG TIME AGO ESPECIALLY THE ZAMBIAN HOUSE IN THE UK IN KENSINGTON. THE HIGH COMMISSION IS IN THE PRIME TOP END AREA WITH A VERY BIG AND STRUCTURALLY NICE BUILDING. HOWEVER, THE MAINTENANCE OF THIS BUILDING LEAVES MUCH TO BE DESIRED. EVEN THE HIGH COMMISSIONER’S RESIDENCE IS ZAMBIA’S PROPERTY. THE MAINTENANCE HERE IS TIPTOP.
These PF guys are very innovative in formulating ways to steal.
Just reduce missions in places filled with caders which contribute zero to to Zambia.
Look at employing resident zambians to reduce rentals. There are many qualified zambians living abroad.
It is very surprising that it would take 50 years plus to realize this. All along I have been under the impression that our missions abroad have purchased those properties. It is very expensive to rent because at the end of the day the mission has nothing.This is why Americans have been constructing or acquiring their own mission’s property abroad. If KK’s team had realized this earlier , most if not all of our missions abroad would have acquired their own Govt property by now -after 50 year of independence. Any way perhaps it is better late than never.
RATHER TO REDUCE THE COSTS OF FINANCING , NOT INDIVIDUAL MISSIONS CREATING MORGAGES Use a mortgage pass through method create a security centrally managed at Ministry of Finance like a pool of mortgages and pass through individual missions mortgages by missions from the savings on rental cash flows and let the security holder by Ministry of Finance not individual missions
It will be easier and cost effective to manage in terms of principal,interest,currency exposure and any prepayments for those assets that principally will be attractive for outright acquisitions
It will be even cheaper to raise financing than the traditional type…
on secondary markets or other alternative markets .Identify and Isolate those effective acquisitions
Central Treasury mortgage pass-through will be cheaper on the markets rather than individual isolated globally acquired mortgages
I said it before this idea was put forward that this is a ridiculous idea….instead of cutting expenditure we are doing the opposite. Are you telling us that Zambia doesn’t own any properties?
@ Spaka like lilo the first line sums it up!
I thought Zambia had fixed assets in most of the countries that they have embassies? Did they privatize everything from 1991? This country never ceases to baffle with BS.
Don’t comment on things that you don’t understand
Typical UPND bafoons!!!