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Saturday, December 3, 2022

China on board to help with Zambia’s debt -Hichilema

Economy China on board to help with Zambia’s debt -Hichilema

President Hakainde Hichilema has thanked China for coming on board to commit and join other creditors in the International Monetary Fund (IMF) Zambia debt restructuring process.

President Hichilema announced that to this effect Zambia has recorded progress with the debt restructuring programme which is targeted at restoring and reviving the country’s economy.

Speaking during the first quarter of 2022 press conference at State house in Lusaka yesterday, President Hichilema, emphasized that it will be difficult for the government to record sustainable economic development with the current debt levels.

ZANIS reports that the President stated that the current debt levels are the reasons why government is committed to ensuring that all debt restructuring challenges are addressed before another development agenda.

He disclosed that Zambia has so far made remarkable progress with the IMF in its debt restructuring programme and is by June this year likely to progress to the second phase of negotiating under a common framework.

“Last year we reached the staff level agreement with the IMF on the debt restructuring, you can’t build the economy with huge debt mountains, and we undertook a decision to dismantle this debt and create room to release resources towards debt servicing in the economy to create jobs and grow the economy,” he said.

President Hichilema added that contrary to assertions by some sectors of the society that he was ignoring China in the IMF negotiation process, he personally engaged China, and was proud to announce that China is now part of the common framework committee.

“Am proud to announce to the nation that we engaged China, we engaged other creditors to negotiate a debt resolution package, I engaged China myself as President that’s my job, which you gave me, working together with the Ministry of Finance, Foreign Affairs we want to thank China for joining the common framework agreement to resolve the debt crisis,” he disclosed.

The Head of State explained that within the eight months that the UPND has been in office, Zambia is on course with the debt restructuring, adding that all the required components have already been put in place.

Mr. Hichilema said the value of the restructuring will result in resources made available for the economic expansion and the private sector who will in turn supplement governments in job creation.

Meanwhile, President Hichilema said government regards the private sector as the engine for economic development hence it will soon launch the Public Private Dialog Forum for Development aimed at unlocking all challenges that impede the growth of the sector.

He explained that the private sector has an important role to play to help government create more employment opportunities that are likely to benefit the citizens.

“The engine of economic growth is the private sector, after working hard looking at what we can do to unlock the private sector development , we will shortly be launching what we call the Public Private Dialogue Forum for Development as a way of unlocking all those issues that affect the growth of the private sector,” he added.

President Hichilema further stated that it’s not a coincidence that the country has continued to record reduced inflation rate and stable exchange rate but that it is because of the measures that government has continued to implement to bring stability in the country’s economy.

7 COMMENTS

  1. Hmmm. So how much of Zambia did you have to hand over for this to happen? After Edgar China Lungu sold out Zesco, ZNBC and ZICTA is there actually anything LEFT???

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  2. “I engaged China myself as President that’s my job, which you gave me, working together with the Ministry of Finance, Foreign Affairs we want to thank China for joining the common framework agreement to resolve the debt crisis,” he disclosed.-LT

    UPND administration cannot handle the media but thank china why? IMF and China are they Blind to social media from Zambia?

    Ask yourself this question: how many ordinary Zambians Have invested in the Lusaka stocks Exchange.

    GRZ, IMF and China tell us about 10 provinces and 72 districts. Which provinces have the most invested in the Lusaka stock exchange and why?

  3. Not welcome news to the PF but they forget that China knows how to deal with Africa. The Chinese know and still remember wht late Michael Sata used to say about their country as opposition leader. They know and still remember what he became as President of Zambia.

  4. That’s the way to go your excellency. Don’t trust the Europeans and imf too much. They will mess you up. China has been our whether friend all the time. With China on board, we will make progress. Don’t listen to people that condemn China, they no very little about China

  5. President Hichilema is really a visionary leader. He came into power at a time when Zambia is so highly indebted. In order for Zambia to sustainably develop its economy, nkongole (debt) needs to be settled or be paid off till its settled, while simultaneously driving the economic agenda forward to benefit its people through attracting investors, job creation, creating conducive environment for start-ups etc. Salute to you Mr. President.
    It is vital that every Zambian citizen understands the value of money and how it works. When you borrow money, pay your debt without owing anyone. By so doing, it allows you to develop yourself further without running away from your creditors or risking your assets from being repossessed, rather build your wealth sustainably for future generation without…

  6. The Chinese have reacted positively to the call to support the progress on Zambias debt restructing The key is to engage them constructively and make a good faith case negotiations with them because by nature some classes in chinese infrastructure projects may not fall into the G20 common framework nicely and neatly Discussions and engagement could short-term the closure within this year because the lead time could be 1 to 3 years resolutions with official 16 of those creditors There is still work and time to focus and close quickly and achieve restructuring it may not happen within this year but with focus it could be lessened Achieving a 70% participation rate and having Macro_economics assumptions good for discussion will be important also it’s over not yet more work has just begun

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