China Writes Off Debt, Gives Zambia $30 million Grant

China Writes Off Debt, Gives Zambia $30 million Grant

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.

Source: Times of Zambia