Zambia’s ‘Real’ Debt Stands At $30 Billion – Dr. Nevers Mumba

Former MMD president Dr Nevers Mumba says Zambia real debt stands at US $30 billion disputing finance minister Felix Mutati’s projection which is quoted at $7.2 billion. Dr Mumba, who is now one of the prominent supporters of UPND leader … Continued

The post Zambia’s ‘Real’ Debt Stands At $30 Billion – Dr. Nevers Mumba appeared first on Zambia Reports.

Former MMD president Dr Nevers Mumba says Zambia real debt stands at US $30 billion disputing finance minister Felix Mutati’s projection which is quoted at $7.2 billion. Dr Mumba, who is now one of the prominent supporters of UPND leader Hakainde Hichilema, has published an article on his Facebook page backing his claim and challenging the Zambian government to be truthful. “Considering that there is much confusion among Zambians on what the correct debt position is, we did our own research and concluded that the figure of $7.2 billion Mr Mutati gave is simply not true. “Based on evidence gathered from a variety of sources, we have found that the true figure appears to be at least 4 times larger than stated. “Our preliminary figures, based on information in the public domain, show that at a minimum, the true debt position is about $30 billion!!!” he states. BELOW IS THE FULL ARTICLE BY DR MUMBA ZAMBIA’S HIDDEN DEBT CRISIS: THE REAL DEBT IS $30 BILLION! By Dr Nevers Sekwila Mumba, 28th July 2017 On 21st June 2017, Finance Minister Felix Mutati gave a ministerial statement in Parliament in which he said that Zambia’s foreign debt stock stood at $17.2 billion. After much debate and discussion, he clarified later on that he had misspoken and that the correct figure was actually $7.2 billion. This figure was challenged, most notably by Mr Trevor Simumba, a Zambian financial analyst. Considering that there is much confusion among Zambians on what the correct debt position is, we did our own research and concluded that the figure of $7.2 billion Mr Mutati gave is simply not true. Based on evidence gathered from a variety of sources, we have found that the true figure appears to be at least 4 times larger than stated. Our preliminary figures, based on information in the public domain, show that at a minimum, the true debt position is about $30 billion!!! In 2011 when the Patriotic Front (PF) government took office, Zambia’s external debt stood at $3.5 billion (15% of GDP). Using the government’s own figures, it has ballooned to $7.2 billion (34% of an estimated $21 billion GDP) in 2017 and the year is not yet over. But the World Bank as of 2015 put the debt at $8.7 billion (by 2017 it is certainly around $10 billion). Using our computed figure of $33 billion, it is 157% of GDP. 40% is the government’s own acceptable threshold. The list below, which is certainly not exhaustive, does not count other loans for 2017 still in negotiations such as the Lusaka-Ndola dual carriageway which will cost not less than $500 million and it does not factor in local debt ($4 billion) or arrears owed to contractors ($1.7 billion). We have also not factored in an estimate of unknown loans. We estimate that the grand total of all debts is anything from $35 billion to $40 billion. To make our research more complete, we have also taken into account debt servicing. Below the list of loans is the list of debt servicing per year from 2011 to 2015 based on data from the World Bank. We have added our own estimate for debt servicing for 2016 and 2017. Also of note is the fact that the government has this year requested for an additional $8 billion from China to fund infrastructure development! This shall make the debt position far worse than anything imaginable for Zambia. What is clear from all the information available is that Zambia is sitting on a massive debt time bomb that shall explode in a very big way within the next 5 to 10 years. Based on projections of current economic growth rates, Zambia will not manage to pay off those debts in a sustainable way. A sovereign debt default and significant credit rating downgrade is a very real possibility. We do not claim perfection in our research and there is a chance that there could be gaps in our information. We therefore call upon Mr Mutati to issue another ministerial statement and shed light on this matter with the true debt position because it appears the Zambian government is being economical with the truth. Zambians need to know the real debt position so that they can anticipate what is coming ahead of us economically. The IMF is already in negotiations with the government for a $1.6 billion bailout and they also need to know the truth, the whole truth and nothing but the truth in order to determine how much they can lend because they need to know our capacity to repay. LIST OF MAJOR LOANS (2011 – 2017) 1. Kenneth Kaunda International Airport: $360 million (2014) 2. Poverty reduction projects: $13.5 Billion (2012) 3. Poverty reduction programmes: $6.7 billion (2011) 4. 750MW Kafue Gorge Lower Power Plant: $1.7 billion (2015) 5. 360MW Kariba North Bank Power Plant Expansion: $430 million (2014) 6. Lusaka L400 roads: $300 million (2013) 7. Copperbelt International Airport (Ndola): $400 million (2017) 8. Lusaka de-congestion: $286 million (2017) 9. Communication towers: $280 million (2017) 10. Copperbelt C400 roads: $418 million (2015) 11. Chipata-Serenje railway line: $2.3 billion (2017) 12. Mongu-Kalabo Road: $287 million (2011) 13. 2,000 Military Houses: $157 million (2017) 14. Mansa-Luwingu road: $242 million (2012) 15. Water and sanitation programme: $135 million (2016) 16. Mbala-Nakonde Road: $180 million (2011) 17. Lusaka sanitation project: $130 million (2015) 18. Kafubu water and sanitation project: $104 million (2014) 19. National Heroes Stadium: $94 million (2011) 20. Levy Mwanawasa Hospital Expansion: $90 million (2015) 21. Kafulafuta Dam water project: $449 million (2017) 22. Housing project for security wings: $275 million (2015) 23. International Development Assistance programme: $600 million (2017) 24. Rural roads project (World Bank): $200 million (2017) 25. Environmental Remediation and Agribusiness Development: $106 million (2016) 26. Miscellaneous small loans: $300 million (estimate) 27. Debt position of previous government up to 2011: $3.5 billion TOTAL EXTERNAL DEBT: $33.5 billion ANNUAL EXTERNAL DEBT SERVICING 2011: $229.6 million 2012: $230.1 million 2013: $325.9 million 2014: $396.0 million 2015: $507.3 million 2016: $660.0 million (estimate) 2017: $800.0 million (estimate) TOTAL: $3.1 billion ESTIMATED NET EXTERNAL DEBT: $30.4 billion (2017) The post Zambia’s ‘Real’ Debt Stands At $30 Billion – Dr. Nevers Mumba appeared first on Zambia Reports.

source: Zambia Reports

Google CEO Visits Nigeria, Announces $3 Million Investment Plan

[This Day] The Chief Executive Officer of Google, Mr. Sundar Pichal, who visited Nigeria for the first time yesterday, announced fresh plan of the technology company to invest as much as $3 million free equity seed funding for technology startups in Af…

[This Day] The Chief Executive Officer of Google, Mr. Sundar Pichal, who visited Nigeria for the first time yesterday, announced fresh plan of the technology company to invest as much as $3 million free equity seed funding for technology startups in Africa before the end of this quarter.

source: AllAfrica News: Nigeria

Buhari Ready to Resume Work, Says Oyegun

[This Day] Abuja -As Nigerians eagerly await the return of President Muhammadu Buhari from his medical treatment in the United Kingdom, the National Chairman of the All Progressives Congress (APC), Chief John Oyegun, has said that the president has rec…

[This Day] Abuja -As Nigerians eagerly await the return of President Muhammadu Buhari from his medical treatment in the United Kingdom, the National Chairman of the All Progressives Congress (APC), Chief John Oyegun, has said that the president has recovered well enough to resume duties.

source: AllAfrica News: Nigeria

Govt Denying Us Access to Freed Chibok Girls, Alleges BBOG

[This Day] Abuja -The #BringBackOurGirls, (BBOG) advocacy group has accused the federal government of shielding them from making contact with the 106 of the freed Chibok girls currently undergoing rehabilitation at the Women Development Centre, Abuja.

[This Day] Abuja -The #BringBackOurGirls, (BBOG) advocacy group has accused the federal government of shielding them from making contact with the 106 of the freed Chibok girls currently undergoing rehabilitation at the Women Development Centre, Abuja.

source: AllAfrica News: Nigeria

Fayose – How Obasanjo Used Me Against

[This Day] Alleges former president knelt down to beg Ghaddafi for third term Ekiti State Governor, Ayodele Fayose, has made some of the most far-reaching revelations yet about the years in office of former President Olusegun Obasanjo.

[This Day] Alleges former president knelt down to beg Ghaddafi for third term Ekiti State Governor, Ayodele Fayose, has made some of the most far-reaching revelations yet about the years in office of former President Olusegun Obasanjo.

source: AllAfrica News: Nigeria

Obasanjo Begged Ghadaffi for Third Term On His Knees – Fayose

[Leadership] Ekiti State governor, Ayodele Fayose, has made some startling revelations about the years in office of former President Olusegun Obasanjo, saying the former Nigerian leader once went down on his knee to beg the late president of Lybia, Mou…

[Leadership] Ekiti State governor, Ayodele Fayose, has made some startling revelations about the years in office of former President Olusegun Obasanjo, saying the former Nigerian leader once went down on his knee to beg the late president of Lybia, Moummar Ghaddafi, to assist him in actualising his third term bid.

source: AllAfrica News: Nigeria

Environment Agency Turns Down Chinese Investor’s Sand Mining Bid

[Monitor] Wakiso -The National Environmental Authority (Nema) has rejected a proposal by a Chinese company to excavate sand along the shores of Lake Victoria at Kawuku in Nkumba Parish, Wakiso District.

[Monitor] Wakiso -The National Environmental Authority (Nema) has rejected a proposal by a Chinese company to excavate sand along the shores of Lake Victoria at Kawuku in Nkumba Parish, Wakiso District.

source: AllAfrica News: Uganda

Farmers/Herdsmen Clashes Will Consume Nigeria, Northern Govs Warn

[Leadership] Governors of the 19 Northern states of the federation have warned that if sentiments are not put aside, the persistent clashes between farmers and herdsmen will consume the region and the entire country.

[Leadership] Governors of the 19 Northern states of the federation have warned that if sentiments are not put aside, the persistent clashes between farmers and herdsmen will consume the region and the entire country.

source: AllAfrica News: Nigeria