https://l.?u=https%3A%2F%2Fwww.pulselive.co.ke%2F8826502%3Futm_source%3Dfacebook%26utm_medium%3Dsocial_user%26utm_campaign%3Dplive_web&h=AT0SQ0cvt3SNfB1bDLAFIr_FdF3xJDfBf34zY2gHCrNFn9ySnMpDSQyQ-T-ECPGP27y_h8r2w1Vr9nmAW7zbIU8-fh0-GpJvTx1LH-HqRZ1JpGxwgzBkq03qwMN5YlBoC3M



Finance
Zambia is reportedly in talks with China over acquiring its main power company after defaulting on loan repayment
David Ngash | 17:37 | 07.09.2018
Zambia could become Africa’s first casualty in China’s takeover after defaulting on loan repayment
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.

Na d whole country naija go lose after buhari finish wih us

Chai, just negodu how China is gradually taking over assets across poor regions of the world. First, it was a sea port in Sri Lanka now is a power plant in Zambia maybe next is going to be an airport in Nigeria!! Buhari is busy borrowing money up and down only for him and his gang of criminals to loot it!! Nigeria is doomed and another four years with the terrorist of Daura will surely liquidate this unfortunate country.

Nigeria is gone....buhari has traded us off.

Nigerians after reading this news...

In as much as we all love to strongly condemn and oppose borrowing, do we really have a choice?

Our revenue can hardly suffice for our recurrent expenditure. With industries and citizens not wanting to pay an improved tax and with the oil price not looking to improve I do not see any ways we can improve our revenue generation in time to cover up for these capital projects.

Even the US is indebted.

This is probably me playing the devil's advocate.

I also think the US is more concerned about China's takeover than how they takeover.

Bottomline: borrowing is not bad as long as you do something tangible with it.

Hope this chinco people are not planning to take over Nigeria.

Life is so crazy!

Do it, u're damned

Don't do it, u're still damned

Borrowing for infrastructure development is not a bad idea. But if the infrastructure will not generate revenue to pay off the debts, then we have a big problem.

Mynd44.
Lalasticlala.