
ZAMBIA has secured a concessional loan of US$ 1 billion from the government of China for investment in development projects in hydro power, housing, road infrastructure and other sectors.
Commerce, Trade and Industry Minister Felix Mutati said in an interview in Lusaka yesterday, in addition to the US$ 1 billion, the government of China agreed to give Zambia a grant of US$10 million for use of whatever purpose needed for the completion of the Ndola stadium.
Mr Mutati said Zambia was able to secure the US$1 billion because it was the first African country, with a high powered delegation to visit China after the Forum for Africa China Cooperation (FOCAC).
“We were the first among the African countries to make a presentation to China for various projects amounting to US$1 billion. The various projects are in power sector development for the two hydro power stations, housing, road infrastructure and other sectors. It’s because of the president going to China that we have been able to secure a loan of US$1 billion,” Mr Mutati said.
Zambia was able to secure the funds following the Cooperation FOCAC meeting in Egypt in November last year.
During the FOCAC meeting, China made pledges on its cooperation with Africa including a provision of US$10 billion in concessional financing for various projects in African countries.
Further, he said China pledged to set aside US$1 billion to support small and medium entrepreneurs (SMEs).
Mr Mutati said it was to the advantage of Zambia to be among the first countries to seek the funds saying as a result, the nation was able to access US$1 billion, which other countries might not be able to get.
The insinuations that President Rupiah Banda’s visit to China was a sheer waste of time and resources were unfortunate considering the benefits that Zambia was set to achieve.
“There was merit for Zambia to go to China as quickly as possible and agree on the framework of accessing the resources to ensure quick delivery of goods and services,” Mr Mutati said.
He said he was particularly happy that President Banda accepted to go to China and meet his counterpart Hu Jintao who directed his government that he would want the issue of Zambia accessing the funds to be addressed expeditiously.
As minister, he said, the presence of Mr Banda in China made his work and that of the other ministers easier as the two heads of State were able to hold talks at higher level.
In addition to the funds, Zambia was able to sign memoranda of Understanding (MoUs) with commercial institutions in China.
One MoU was signed between Zambia and China Non Ferrous Metals, which was currently developing the Chambishi Multi Facility Economic Zone (MFEZ) to also develop the Lusaka sub-zone.
“They will start the implementation of the Lusaka sub-zone as soon as the rain is over and they pledged $300 million,” Mr Mutati said.
He said that the Government signed an MoU with China Africa Development Fund that has appointed Zambia as the regional office on the continent.
Zambia signed another MoU with Beijing Gold Common Mining Investment Company to deal in the construction industry.
In the Government’s delegation to China, there were representatives of 50 Zambian companies that were able to secure joint investment ventures with their counterparts in China.
One such Zambian business entity was Biomass PLC, which managed to enter into a joint venture with Walhan Kaida for the development of bio-diesel using jathropha.
“The initial investment for this project is US$400 million and this is purely private sector investment,” Mr Mutati said.
As such, he said, politicians should desist from complaining that the president’s visit to China was a waste of resources and time, saying the move has proved to be beneficial.
It was Government policy to attract investment not only from China but other countries saying next week, a delegation would be sent to India to lure investors from that country.
[Times of Zambia]