Chinese Foreign minister Wang Yi. FILE PHOTO | AFP
Chinese Foreign minister Wang Yi. FILE PHOTO | AFP

THE Chinese government has written-off more than US$22 million as part of debt that Zambia owes the Asian country to reduce the debt burden.

And China has given Zambia a grant amounting to US$30 million towards support to various projects of development to accelerate industralisation and job creation agendas as espoused in the Seventh
National Development Plan.

On the debt cancelation, this followed recent consultations on partial debt cancellation between the two countries and China agreed to exempt Zambia from its obligation of paying back one batch of interest free loan that matured in December 31, 2018.

Chinese Foreign Affairs Minister Wang Yi said here on Monday that the US$22 million (150 million RMB) interest-free loan was provided in the Agreement on Economic and technical Cooperation between the two sides of China and Zambia signed on July 2, 2007.

Mr Wang said his government cancelled that debt because it was keen to see Zambia attain more economic development, and no amount of propaganda peddled by some sections of society would frustrate China from offering more support to African countries.

“Today, we are signing this debt cancellation because we are keen to see Zambia grow from strength to strength and we shall do what we can
to support Zambia’s development agenda, ” he said.

He was speaking during the signing ceremony for economic agreements and debt cancellation between deputy director of China International
Development Cooperation Agency Zhou Liujun, who signed for China while Foreign Affairs Minister Joseph Malanji on behalf of Zambia, and was witnessed by Zambias Ambassador to China Winnie Chibesakunda at Diaoyutai Hotel.

Mr Wang said China’s offer of a grant of US$30 million (200 million Yuan) was coming in view of further developing the friendly relations.

He said the Chinese were confident that through such a grant, among significant infrastructure such as Levy Mwanawasa Teaching Hospital in
Lusaka project could be completed by end of this year.

He said President Xi Jinping and President Edgar Lungu collaborate well and share ideas of development which result in China remaining
focused to ensure funded infrastructure projects in Zambia were completed to better the lives of citizens.

And Mr Malanji said Zambia was grateful to the generosity offered by China citing the writing-off the debt which was coming at the right time when Zambia was enjoying cordial bilateral ties.

He said Zambia’s population was growing and there was huge demand for infrastructure ranging from roads networks and bridges and as such,
Government was not borrowing for consumption but to inject significant projects of development.

Mr Malanji said the support from China was accelerating efforts of economic diversification as being emphasized by President Lungu from
mining to industralisation and agriculture as espoused in the Seventh National Development Plan.

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49 COMMENTS

  1. You are still not getting KCM.. You kill mining towns. You love your own only. Your companies companies do contract locally owned indigenous companies for aspects of your core mining operations or procurement of basic inputs and requirements. To imagine living with you in this scenario under you for the next 20/30 years!!!. God forbid!!

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    • The timing of the Chinese Debt Right Off is telling. It looks its just at the Right Time for a Chinese Investor to displace Vedanta from KCM. It looks like rumours about a Chinese Investor buying out Vedanta in KCM are just about to be confirmed. Time will tell.

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    • Really laughable …they write off $22 million and give you a $30 million, what is $22 million when Lazy Lungu’s jet is worth more than that…this is encouraging laziness

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    • JAY JAY 1.3

      So do you want The President to be traveling abroad by a canoe boat. That jet belongs to Zambia. If your man becomes the next president, I am sure you will be happy to see HH using the same plane.

      And how does the debt right-off got to do with the presidential jet??

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    • And this is a big deal because? This is a drop in the ocean. We owe billions thanks to PF. Additionally, the Chinese dont give you anytging for free. The so-called “interest free” loans are used to ensnare you in huge debts that you cant pay back and have to surrender national assets. Our greedy and clueless leaders cant see this. When they just hear ati “intetest free loans” they run like headless chickens to acquire them

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    • China has forgiven Zambian debt before. Let’s not make a fuss out’a this gesture.

      That said, we Zambians should get used to accepting these debt write offs in future. Like HIPC initiative, debt write offs promote laziness, luck of political proactiveness, irresponsible and makes us borrow without breaks. We will then be compelled to do one thing in kind.
      As for KCM, let us please Chagwa, have as many Zambians in the deal as possible. Can Zambia please have a bigger share than foreigners.
      To China, thanks for the gesture, in good or bad faith. I only hope that bad faith is good enough.
      As for corruption, I hope politicians will be as transparently forth coming as possible this time. I hope EAZ will be engaged to advise politians technocratically. We do not need another double h…

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    • That said, we Zambians should not get used to accepting these debt write offs in future.

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    • Soul 2 Soul – Don’t be daft …there was and is already a Bombardier Jet 9J-ONE..the only reason your LAZY President bought this is to register it as a military aircraft so he can fly all over the place. here is what happens when debt is written off..that allocation of repayment is misused.

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    • Will it induce prudence in our economic management? Don’t bank on it, otherwise every decision that loosens the noose on our neck is welcome. Maggie Mwanakatwe can at least have some restful sleep as she deals with Chikwnda’s appalling legacy. Let’s face it and let’s be fair, she found this mess. Felix Mutati recognised the problem and wanted to deal with it but he was ejected for some reason privy to ECL.

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    • Any man worth his dangling objects, should never be called a man because he will be indebted to the master for forgiving his debt, man up and pay your debt. #kaloba Inc#kakistocracy.

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    • The USD22m write off by the Chinese Govt is an Appetizer or Downpayment on the KCM purchase of Assets by Chinese Investor(s). After kicking out Vadenta out of KCM a Chinese Investor will emerge as a New 80% Shareholder in KCM. Vedanta will be paid off by the New Chinese Investors and will quietly exit KCM and Zambia with a hefty Compensation and Damages. The Chinese Investors will be impose and People of the CB will be given a Fait Accompli by the ECL Govt. The writing is on the Wall.

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  2. Why can’t those Chinese wait for HH?
    What’s $30 million to PF??? Nothing!! It is already stolen before even kissing ZANACO.
    What’s $22 million to Zambians Nothing!!

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    • But when. He doesn’t even have an mp in urban areas

      Chikwera in Malawi is putting pressure on wantharika because he has urban support.

      Please If you are blogging from uk stop wasting your pain on Zambia

      Concentrate on those jobs

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    • Nostradamus 2#

      Why wait for HH?

      We have a president in Zambia who they can deal with. HH is an opposition leader, who has failed to get into State House, rejected by Zambians 5 times. And from the look of things, he will miss again in the next elections.

      You know what I mean….

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    • U are missing the point. The Chinese will buy out Vedanta from KCM and will quietly pay off Vedanta millions of Dollars in damages and Compensation. Then the Chinese will own and manage KCM whether ba Copala like it or not. Thanks to ECL.

      .

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    • Chansa 2.3

      Liar… You dont know who is buying the KCM. Again living on assumption leads to false testimonies. Get that buddy…

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    • Chansa, it doesn’t matter if the Chinese or anyone gets KCM. What matters is that Zambia starts benefiting from the mine

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    • Lazy Lungu came out last week stating that there is interest from all over …its lies its only Chinks interested this is why as I predicted Kaizer now lives in CB and there are no mining technocrats on that delegation as its only Chinks they have in mind. No investor apart from Chink State company has balls to get that KCM with its baggage.

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    • This is what happens when the President is not transparent and doesn’t hold press conferences!!

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    • I just had free lunch paid by my boss via the company i work for with no strings attached.

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  3. This is like a dealer giving a juckie a free fix knowing very well he will come for more!!

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    • The Chinks know that they are dealing with simpletons, greedy thieves…KCM will soon be in there pocket and they will use Chink prisoners to work and get rid of the Unions and workers!!

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    • Jay Jay 5.1

      Yeah, Yeah…. we are tired of this broken song. Why don’t you point and bring evidence about who has stolen. You chaps having nothing to offer. Its all bitterness & bitterness all time. Wina azafa na heart attack

      You get what I am saying… Just too much Ma-Rubbish

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  4. It is either you work very hard and your boss is rewarding you for your hard work or you are that type of a person who is a Muzungu anikonde.

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    • No No… My boss is actually a Black American. He is the Finance Director and I am a Finance Credit Control & Risk Analyst.

      The world has still got nice people who are not negative all the time like you who live on assumption all the time. Where is this Muzungu Anikonda coming from.??

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    • Soul 2 soul, apparently most of these armchair critics are the evil ones that believe and think one cannot help another person out of goodwill. I donate to charities and always make sure I have enough change to give to someone on the streets and homeless. I am already helping fellow Zambians with no expectation in return, but out of a good heart I have to help those in need. Just ignore these vipers whose on allergiance is being negative literally about everying.

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  5. That’s just half of our Wheelbarrows written off!
    The amount written off is almost the same amount we sold KCM for!
    Looks like they have positioned themselves already to take over KCM as we were told in Maputo!
    Chimbwi pakulila ninshi naishiba uko ashintilishe …

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  6. The Chinese in Zambia are ones mostly involved in building roads and bridges, means more Chinese on the way, portion of this fund is to take care of their own people plus those who don’t keep money in banks. Be good if local ingenious construction companies can be given larger slice of this cake.

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    • ZOZI-A-ZOZI # 9

      I agree with you 100%

      I think we must take their money and not allow them to bring labour workers when we have so many unemployed youths and graduates

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    • Zambia workers too much lazy. 24/7 on smart phone insulting lungu no work.

      Complaining too much no money but no work everyday.

      Lazy jj just shouting every day no work, just hh everyday no guda hh
      and Zambia malia

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    • Money comes with conditions which they don’t disclose. They know why they
      Giving that loan and their benefits.

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  7. Xièxiè n?, méiy?u péngy?u!!!!

    THANK YOU NOBLE FRIENDS!!! Form government with us.

    Bùyòng kèqì!

    You are most welcome!

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    • Xièxiè n?, méiy?u péngy?u

      THANK YOU NOBLE FRIENDS!

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    • Xiexie ni meiyu pengyu

      Pardon auto correct subotage…….must be American!!!

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    • Imwe mwe bantu imwe muletasha fimo. What do you want China to do to us? China writes off our loan you say it’s has some strings on it.
      When there was hippic completion point, you praised the then government of working hard to achieve it. Now under President Lungu it’s something else. Give us a break. Stop criticising anything good that the government does. You are easily frustrated by the good things that the government is doing because you know that the more good things that are done by the government the less chances of you winning the 2021 general elections. Shame on you. Let’s go President Lungu and continue with your good works for the people of Zambia.

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  8. Zambia,Africa(don’t) doesn’t learn.What the Chinese have done to us through greedy and clueless leaders is what the IMF and the World Bank did to us in the 70s to 80s:Lend us money on many development projects that yielded no repayment returns,kept us in debts for decades were were paying over and over making them richer and richer.By the time the came to cancel the debts,they had made huge profits on the loans and left us under developed.Similarly the Chinese have helmed us in,we shall be paying over and over,when the infrastructure will have not served the economic purpose and will be broken.By the time we shall redeem the debts,they will have made so much on it and will enslaved us for ages!!THESE DEBT CANCELLATION ARE NOTHING,IF THEY MEAN WELL,LET THEM QUESTION INFLATED CONTRACTS…

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  9. I wonder if Zambians will ever understand Chinese business model.They give you so called soft loans for infrastructure, roads and ports with one condition that these work contracts to be awarded only to Chinese companies. Later those Chinese companies will bring all material,machines and manpower from China only. These Chinese proposed projects has no future, check conditions of projects in Srilanka, PNG and many other small countries.
    Have a word with People who unfortunately worked with Chinese companies in Zambia they treat people like slaves.

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    • Am so sick and tired of this attitude of African countries always depending on borrowed money to run their affairs why can’t we change. I have a principle in my life I don’t borrow not bcz am rich but its healthy and it makes you work hard borrowing attracts stealing and corruption.

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  10. The Levy Mwanawasa infrastructure is a beautiful infrastructure which our children and their children will continue using unlike in the past when Zambia accumulated a huge debt under the KK’s regime which literally went under the drain i.e. mealie meal coupons and unsustainable parastatals because of unrealistic prices. Does it mean that the original for the Mwanawasa infrastructure not enough requiring a supplental loan?

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