Minister of Finance Mr. Felix Mutati has said the decision by the European Investment Bank to set-up a country office is a clear endorsement by Europe that Zambia is one of the best investment destinations in Africa. And the European Investment Bank [EIB] is in the process of arranging blend finance comprising loans and grants to Zambia totaling Euro 320 million this year.
“The plan to set up a country office in Zambia by a Triple A [AAA] credit rated organisation like the European Investment Bank whose board of governors are Finance Ministers in the entire European Union, means the international community is steadily appreciating the government’s algorithm for the economic recovery and stabilisation programme, Zambia-Plus,” a beaming Mr. Mutati told members of his senior management team at the Ministry of Finance when he shared a report on his recent trip to Europe.
“We welcome the EIB because they are not afraid of money,” charged Mr. Mutati, adding that “the fiscal prudence and economic-governance measures which we have put in place under Zambia-Plus need to be sustained so that quality investments flow into Zambia for us to meet our job creation and poverty reduction objectives in line with the development vision of President Edgar Lungu.”
“The coming of EIB to Zambia will improve the credit-rating bench mark for the financial sector,” Mr. Mutati assured his senior management team and urged them to “be on high alert so that all economic fundamentals continue to move in the right direction.”
During the Zambia-EIB Seminar on EIB Financing in Sub-Saharan Africa which was recently held at the EIB Headquarters in Luxembourg, Europe, EIB Deputy Director General, Patrick Walsh disclosed that, “due to our growing investment portfolio in Zambia, significant progress will be made in the coming few months to establish an office by the third quarter of 2017.”
Mr. Walsh said the operations of the EIB Zambia Country Office will be targeted at supporting the European Union’s development agenda; contributing to poverty reduction; and, facilitating achievement of the UN Sustainable Development Goals [SDG’s]. Zambia will become only the sixth country in Africa to host an EIB Country Office after earlier establishments in South Africa, Kenya, Ethiopia, Ivory Coast, and Cameroon.
“EIB is keen to support programs related to climate action such as renewable energy, climate adaptation, and projects with a high and sustainable impact on society and the environment,” stated Mr. Walsh.
The Minister of Finance was recently on a trip to Belgium, Luxembourg, France, Germany and Sweden to strengthen economic cooperation; build alliances; source for investments; and, mobilise resources for Zambia’s development needs in sectors such as energy, cash-crop agriculture, infrastructure, social welfare [social-cash-transfer], and multi-sectoral capacity building – including financial sector development.
For 2017, the EIB is in the process of finalizing finances for several projects such as:-
1. Investment grant of Euro 45 million blended with a loan of Euro 110 million for rehabilitation of the Great North Road;
2. Investment grant of Euro 40 million for the Kenya-Tanzania-Zambia Interconnector;
3. Investment grant of Euro 65 million blended with a loan of Euro 15 million for the Lusaka Power Transmission and Distribution Network; and,
4. Investment grant of Euro 15 million blended with a loan of Euro 15 million for Aquaculture.
Other projects under EIB consideration in 2017 are the IDC Scaling-Up Solar Project and the Zambia Water for Health Facility.
For the period 2010 to 2015, the European Investment Bank supported several public and private sector programs in Zambia. Under the public sector arm, the EIB financed projects totaling Euro 407 million, of which: Euro 80 million was for rehabilitation of the great east road; Euro 22 million for the Kafue-Livingstone Power Transmission Line; and, EURO 50 million for the Itezhi-Tezhi Transmission Line. Others included Euro 75 million for the Zambia Water and Sanitation Project; Euro 78 million for the Lusaka Transmission and Distribution Network; and, Euro 102 million for the Lusaka Sanitation Project.
Among Zambian based private sector organisations which benefitted from Euro 56.5 million EIB support between 2010 and 2015 include institutions such as BancABC which got Euro 25 million for lending to SME’s, Madison Finance Company which got Euro 4.5 million for a micro-finance program, Pulse Financial Services which was given Euro 4 million for a micro-finance program, AB Bank which obtained Euro 3 million for micro-finance, and FNB Zambia which received Euro 20 million for SME’s and Micro-Finance programs.
The overarching priorities of the EIB are infrastructure and private sector development. Under infrastructure, focus is on energy development, water development, transport and logistics and, telecommunications. In actualization of this, the EIB provides direct loans to the public sector, helps to mobilise private sector participation in Public Private Partnerships [PPP’s], and promotes regional integration in order to unlock sustainable economic growth.
For private sector development, the focus of EIB is on Micro-Enterprises, Small and Medium Enterprises, and Corporates. In operationalization of this, the emphasis is on development of the financial sector, increased direct lending to corporates, guarantees, project finance, and Public-Private-Partnerships [PPP’s].
“The EIB is keen to develop the local private sector through facilitation of their access to finance, and, funding of critical social and economic infrastructure,” said Mr. Walsh at the conclusion of the Zambia-EIB Seminar on EIB Financing in Sub-Saharan Africa which was recently held at the EIB Headquarters in Luxembourg, Europe.
Conditionality for access to finance for eligible projects under the EIB mandate objectives for local or regional integration projects, include:
1. Consistency with EU external policy goals;
2. Technical soundness;
3. Economic viability;
4. Financial viability;
5. Environmental soundness;
6. Social acceptability; and,
7. Open procurement.
The EIB has over 50 years’ experience supporting EU development policies in Africa, and in that time has invested over Euro 18 billion in more than 1, 300 projects. The bank is the world’s largest multilateral lender and borrower, and is committed to the central axes of Africa-Caribbean-Pacific/European Union Cooperation, notably development of the private and financial sectors in countries and territories outside the EU.
Zambia is set to benefit immensely from the establishment of an EIB Country Office.
Investor is the new word for slave master. When will slavery ever end? Our leaders are seen in suits being appeased by slave masters in foreign lands. The borrower is always slave to the lender.
Not sure this excites the common man. What people are interested in is jobs, cheap mealie meal, better hospitals.
All this from the finance minister doesn’t please the minority that voted for Lungu.
Thanks
BB2014,16
This is like your neighbour coming to your house, eating your food and then sleeping with your madame in the bedroom – and you say you are very happy.
Africans??!!??
Give credit where its due, this is a good move.
Do you think Zambian economy is in a situation that it can do without borrowing or without foreign investment? Wrong!!! Why would one think by having EIB, it’s another form of colonisation? Come on, get out of that mentality. There need to be some steps taken to create the environment that soon or later should bring the food on ordinary Zambian plates. Or do you trust the PF government so much that, you think, they will clap their hands and food will be on people’s plates? Wrong. Please do not just be negative and criticising all the time.
Be wary of Mutati mwebantu. I hope Lungu audits his Ministers frequently, We don’t want a repeat of Kambwili and Liato
Where else and how else can we get money. Inference of slave masters is wrong. Government has to go where the money is. Forget tbe hangover about colonization and look forward but learn drom our past.
We have the natural resources and their have paper. How we got convinced to become slaves to the paper they print is beyond me! If Africans decided to put ‘Africa’ first things would change.
@ Masalamuso
How much Government officials have contributed to Income/Corporate Tax and how much have gobbled in useless traveling allowances?
The best Finance Minister Zambia has ever had since Ronald Penza
Best Finance Minister Zambia has ever had??
When he said “in line with the development vision of President Edgar Lungu.” ????
Is he the only person in Zambia that did not hear Lungu himself tell everybody he HAS NO VISION???
For sure, he was asleep. Wake up and smell the coffee!
Meanwhile his Lazy Boss is making other silly utterances forgetting that the two are connected!!
I would also set up a bank in Zambia tomorrow if i had the capital. Interest rates in Europe @ r at almost zero or less than 4%. In Zambia u will make a killing, who would not want to make 30% & more in interest?
I call that ‘psychological colonialism’. That Africans have not realized yet.
Psychologically our people have already been colonised…Finanically will are on our way to be slaves especially when all these debts are due.
Colonised with religion..
why isnt Lumwana copper offsetting any Gov loans or spending.?
Every thing and every day it’s borrowing. When ever mutati or lungu fly out it is to borrow.
Keep on eye on those projects mentioned, some have already been mentioned in the past when borrowing. When they borrow again you hear the same projects been mentioned again. Especially nearer elections.
Great move indeed! Let’s not bother about ‘witches’ who hoping for doom in Zambia so that they can have a campaign message! Zambia will prosper; just watch the space. Serious minds that see opportunities are getting support for their SMEs while lazy ones are waiting for elections in 2021 and always crying for food they don’t want to work for! Viva Mutati! Viva Zambia!
This is a major development. This will trickle down to financing of major projects both for government and in the private sector.
Let the United Dunderheads continue to suffer from depression with these achievements- this will translate into so many developments such support for SMEs and more funds for the State to complete major developments for the benefit of all Zambians.
Look at the kaponyas being happy at been offered more kaloba.
Zambia is a rich country but the kaponyas and their leaders who call for cader rule of public places only know how to borrow.
Are we waiting for lending institutions to create the 500.000 jobs promised by lungu ?
I am shocked to the bone. Mushota finally makes sense. This is great
Similar loans have been taken over the years to do with the same things – energy development, water reticulation, transmission lines etc. But look around today, whats the water situation in most areas? load shedding is the order of the day, and still, we borrow for the same ‘development’.
What is lacking is NATIONAL consesus on what development is. Today the definition of development is with Mutati who does not anything about development. Tomorrow it will be Kambwili who knows next to zero about development; the next day it will be Mumbi Phiri who knows nought about development and the circus goes on and on and on ad nauseum.
That is how they steal using the same projects to borrow.
Mutati Must read, “How Europe Undeveloped Africa,” by Walter Rodney!
He is basically an imperialist agent, working against the long-term development of Zambia! He is an intellectually banbkrupt and unimaginative! Only another unimaginative person can appoint such an empty mind to become our Finance Minister!
Thanks I will add this book to my wishlist to buy on eBay!!
Zambian lazy govts are very good at loans & donations instead of getting returns on their resources which they let go out under-taxed or un-taxed, then they later beg for it as loans and donations. These loans have actually choked ordinary Zambians including villagers who pay back in form of taxes e.g, high PAYE, VAT, Toll Fees, Road Tax, Fitness, Insurance & TV Levies, Ground Rent, various fines & penalties, Income Tax, etc. Why subject citizens to loans with high interest rates instead of taxing them directly to contribute towards the cost of desired projects rather than get loans from shylock & sacrifice poor Zambians. It is pointless to have leaders who only know how to source loans & donations instead of finding means of raising revenue locally. Where does the money raised by ZRA,…
Where does the money raised by ZRA, various Ministries & their depts go? Why not lend SMEs the money collected by ZRA? Do all farmers, SMEs, etc, need US Dollars to produce maize, maize & other goods & services?
We keep telling you, PF have no capacity to produce wealth for the country. To them producing wealth means borrowing.
Then to cover their inadequacies they tax and hike prices on everything…..if they see the price hikes are not covering their expenses, they go looking for loans in the name of the same projects over and over.
Good news indeed and sad for upnd followers as such kind of good development pushes HH far away from state house!!Hon.Felix Mutati is the best minister of finance for the past 10 yrs or so.this man will make PF’s works in 2021 very easy because he will deliver wonders in next 5yrs!!!CIMIBABE FI UPND!!GO PF GO!!WE ARE BEHIND YOU BA PF AND BANTUSTANS(UPND) CAN HUNG-WHO CARES!!!
Look at them celebrating when a loan shark some to live with them…..maybe you think this office will be giving you free money ?? No it is borrowing you, you still have to pay it back !
Felix Mutati stop fooling Zambians with a simple EIB office as investment while Kenya & South Africa ran away with having HQ’s and production plants of major world firms. Intel,Nokia ,Pfizer ,Scania,Diageo ,Visa and Google plus many other firms have set up their Africa HQs in Nairobi while Zambia is happy with crumbs.
Zambia is a shame -look at wikipedia list of Nairobi with over 60 global firms Mutati.
List of companies and organizations based in Nairobi
how much interest will the EIB be charging on the loans they will be lending to their SMALL brothers called MICRO-FINANCE institutions?
And these SMALL brothers, at how much interest will they be charging on the loans they will be lending these borrowed EIB LOANS, to Micro and Small scale enterprises in Zambia?
Given that in Europe today interest rates are at 0.25%, i will be shocked to be lent at above 7.5% interest in Zambia by these Micro-Financial Lending institutions!!!!!!!
All this is in the name of “GROWING THE FINANCIAL SECTOR” !!!!!
The game is in the NUMBERS! EIB has seen a good business opportunity in which to open more ” Branches” through Networking with our MICRO-FINANCIAL lending institution!!!!!!.
Am rushing to open One as well and connect it to this EIB Network…
Hazalusa Hagain and his crew of negativity will pee mu ma trousers! They hate good news for Zambia!
Good news? Which one?