China to take over Zambia's power firm over loan default

Informer

JF-Expert Member
Jul 29, 2006
1,445
2,000
Zambia is reportedly in talks with China over a possible takeover of the country's electricity company, ZEWASCO, after defaulting on loan repayment.

This is according to a report by Africa Confidential titled Bills, Bonds and even Bigger Debts claiming that Zambia risks losing its sovereignty to China which is bound to seize its national assets once the government defaults on loans.

"A major worry of the IMF and US is that China’s BRI strategy is first to encourage indebtedness, and then to take over strategic national assets when debtors default on repayments. The state electricity company ZESCO is already in talks about a takeover by a Chinese company, AC has learned.

"The long-term outcome could be effective Chinese ownership of the commanding heights of the economy and potentially the biggest loss of national sovereignty since independence,” the report read.

The report also indicates that a number of projects in Zambia are financed by China even though the amount of debt has been piling over the years.

Debt trap diplomacy

"Since President Edgar Lungu came to power, Zambia has signed off on at least US$8 billion in Chinese project finance. Over $5 bn. of this has not been added to the total because Zambia insists the money has not been disbursed, and more large loans are in the pipeline," the report stated.

Zambia is one of the African nations that was in China earlier this week for the China-Africa summit and President Edgar Lungu is reported to have received a grant of $30m for the Lusaka East Multi-facility Economic Zone electrification project.

China has been considered a good partner by many African countries even though there is worry that its loans are burying some of these countries under massive debt.

The East Asian nation has, however, denied engaging in "debt trap" diplomacy adding that it continues lending to Africa on the grounds that the continent still needs debt-funded infrastructure development.
 

Magonjwa Mtambuka

JF-Expert Member
Aug 2, 2016
22,606
2,000
Zambia is reportedly in talks with China over a possible takeover of the country's electricity company, ZEWASCO, after defaulting on loan repayment....

.
Energy ministry rubbishes Africa Confidential reports on sale of ZESCO

September 6, 2018

Energy Minister in Africa’s second largest copper hotspot, Zambia, Honorable Mathews Nkhuwa has rubbished reports by Africa Confidential reports for the sale of ZESCO. Africa Confidential – AC in an article entitled Bonds, bills and ever bigger debts, reported that the state was already in talks with the Chinese about a takeover on ZESCO the Southern African nations power utility company.

“A major worry of the IMF and US is that China’s BRI strategy is first to encourage indebtedness, and then to take over strategic national assets when debtors default on repayments. The state electricity company ZESCO is already in talks about a takeover by a Chinese company, AC has learned. The state- owned TV and radio news channel ZNBC is already Chinese-owned. The long-term outcome could be effective Chinese ownership of the commanding heights of the economy and potentially the biggest loss of national sovereignty since independence.” As quoted from the AC

Nkhuwa refuted AC claims saying the sale of ZESCO is a big thing that would have to be vetted by cabinet. ZESCO assets are national assets whose valuation is massive and cannot be sold at all, he said.

A Zambian delegation led by President Edgar Lungu is in China attending the Forum for Africa China Cooperation – FOCAC where President Xi Jinping has offered USD60-billion in financial aid in addition to debt write off to poorer African nations. Zambia has also used this opportunity to engage in bilateral talks with China which has so far resulted in lucrative MOUs on trade, technical and economic support.

Source:
 

Isanga family

JF-Expert Member
Feb 25, 2015
7,256
2,000
mhh hatari wameangalia Asset inayolipa zaidi kule kwenye shaba wao wapo na mikataba ya kinyonyaji watachukua kila kitu naona Zimbabwe nao wanaingia mikataba na Wachina kwa kasi sana mpaka kutaka kuruhusu matumizi ya Yen Zimbabwe ngoja tusubiri...
 

Tabutupu

JF-Expert Member
Nov 26, 2010
10,571
2,000
Kenya rail sio yao tena, jibout nao bandari si yao, bandari ya bagamoyo nasikia ni wachina hivyo tujipange kuiuza.

Kama mchina ni mshenzi basi mimi ni mshenzi zaidi.

Magufuli aligoma wachina kuingiza fedha kwa sababu hiyo tuu.

wachina tuwabane watupe grants tuu hakuna mkopo.
 

GreenCity

JF-Expert Member
May 28, 2012
5,612
2,000
Juzi tu, tumeambiwa China to aid Africa (Tanzania inclusive) with no strings attached!
 

Toa taarifa ya maudhui yasiyofaa!

Kuna taarifa umeiona humu JamiiForums na haifai kubaki mtandaoni?
Fanya hivi...

Umesahau Password au akaunti yako?

Unapata ugumu kuikumbuka akaunti yako? Unakwama kuanzisha akaunti?
Contact us

Top Bottom