AfDB remains steadfast to member states

does not need foreign expertise for its gold mining as the country has skilled THE African Development Bank (AfDB) has manpower to handle the investment. pledged This is to according deliver financial, to the Federation knowledge of and Small- policy support to regional member countries such as

Scale Mining Associated of Zambia (FSSMAZ)

Zambia during and after the Covid-19 pandemic

president, Joseph Mwansa.

period.

Pastor As a result, Mwansa AsDB regretted has already that approved it was up to unfortunate US$10 billion that relief Zambia package in this most year cases to support prioritised member countries foreign during investors the Covid-19 over the pandemic. locals.

He It is was because reacting of such to the initiatives US$2.5 which million have led partnership to S&P Global between rating agency ZCCM to IH affirm and AfDB’s Sudanese AAA company rating, with Karma stable outlook. Investment for gold processing The rating investment. agency indicates that the AfDB will play a key role in supporting the region, particularly in the

“What expertise will they bring which context of Covid-19.

Zambia doesn’t have? Some qualified and

Commenting on the rating, AfDB president, experienced Akinwumi Adesina, Zambians said the are institution working would in continue Lumwana to maintain refinery. quality standards, with strong support of “Which all shareholders. school did Dr Adesina they go explained to where that this Zambians would be done can’t delivering go and the learn? much Do needed we need financial, foreign knowledge expertise and policy for support gold mining to regional in Zambia?” member Pastor countries Mwansa during and wondered after the in Covid-19 a statement. pandemic.

He “We said are delighted it was time with Government and welcome created S&P Global’s policies decision that to affirm encouraged the Bank’s indigenous AAA/A-1+ rating. citizens It reflects the Bank’s very strong financial position and to participate in big projects to develop their risk management, as well as our sound governance,” nation. he said in a statement.

Pastor The rating Mwansa agency’s wondered report indicated how Zambians that the would AfDB would assist play Government a key role supporting in building the the region, economy particularly when in the they context were of Covid19. not being given an opportunity “The institution to invest approved in meaningful an up to US$10 projects billion such relief package as the gold for 2020, refinery of which plant. US$6.9 billion will be He financed explained by AfDB that and Government the remainder could through create its and concessional offer shares lending through window. the stock exchange and “The allow stable Zambian outlook companies reflects our expectation and individuals that, over the next two years, AfDB will prudently manage to invest in the gold business through ZCCM- its capital while maintaining solid levels of high-quality IH. liquidity assets and robust funding,” S&P Global

“We always talk about Zambians building said in a statement. The rating agency positively the assessed economy. the Bank’s But how strong do financial we build risk the profile, economy capital adequacy, when Zambians funding and are liquidity, not given extraordinary an opportunity shareholder support to invest and in adequacy the Gold refinery of its governance plant? and “We management. are appealing to His excellence Edgar Chagwa S&P expects Lungu that to AfDB’s with draw shareholders the contract would or partnership,” remain supportive he said. by providing timely capital payments. Pastor Mwansa said: “We can learn from

The rating agency noted the Bank’s US$115 Mopani how they are treating us and avoid the billion capital increase, approved by shareholders in past mistake. Are you telling us that there are October 2019, and the replenishment to the African no Zambians with money? This is a dangerous Development Fund, the Bank’s concessional window, complex.” in December 2019.