Maximise Chinese benefits - think-tank
ZAMBIA should maximize the benefits of Chinese lending and investment by engaging the Asian nation in various initiatives, the Centre for Trade Policy and Development (CTPD) has said.
CTPD lead researcher, Bright Chizonde, observed that China encouraged more investment from companies both state-owned and private, than the previous project-based financing model which the nation should take advantage of.
He said this in Lusaka on Thursday evening at the launch of a report dubbed, “Understanding Zambia’s Chinese debt: proposals for productive engagement.’
Mr Chizonde noted that Chinese debt was about 30 percent of Zambia’s total external debt portfolio
The public discussion attracted representatives from the Policy Monitoring Research Centre (PMRC) head researcher Albert Kasoma, Zambia Tax Platform coordinator Ibrahim Kamara, Southern Africa Cross Border Trade Association SACBTA) president Jacob Makambwe and University of Zambia (UNZA) Caritas chapter students among others.
Mr Chizonde said Zambia should explore more collaboration with China in the Public Private Partnership (PPP) model and endeavour to make its regulatory environment more conducive for private investment from the Asian country.
He said the rising debt in Zambia had become a source of concern and that it should be addressed with the urgency it deserved.
“It might not be the best time now for Zambia to negotiate on the terms of debt considering the interest rate and current international financial market.
“However, the Ministry of Finance in Zambia should communicate frequently with Sino (China and the East) in order to establish an understanding of its assessment of Zambia’s economic and financial stability and the implications of debt restructuring,” Mr Chizonde said.
He prodded Zambia to create a China desk to coordinate all China-related initiatives.
Additionally, Mr Chizonde said, Zambia should consult the provincial business association in Zambia, such as the Jiangxi Business Association regularly.