Vincent Mwale, acting government spokesperson said in a statement that the cabinet approved the contraction of a 128 million U.S. dollars loan from the Export Bank of China for the implementation of a water supply project in Lusaka.

loansThe project would facilitate the provision of clean water and sanitation facilities to mitigate health risks in the Zambian capital, he added.

The cabinet, he said, also approved the contraction of a 170 million dollars loan from the Industrial and Commercial Bank of China for improving water supply system in Kitwe city of the Copperbelt province.

The cabinet also approved the contraction of a 193 million dollars loan and another 50 million one from the African Development Bank (AfDB) for rehabilitation of a road linking Zambia to Tanzania as part of efforts to improve trade between the two countries.

The government has come under criticism for its appetite to continue contracting foreign loans, with critics saying this may plunge the country into another unsustainable debt situation.

The spokesperson, however said that “it is in the interest of government to borrow specifically for infrastructure development and ensure that facilities like road is in good condition.”

Zambia’s current external debt stands at 4.8 billion dollars, representing about 18.5 percent of the Gross Domestic Product (GDP) while the domestic debt stands at 3.7 billion dollars, representing 14.2 percent of GDP, according to central bank figures. Enditem

Source: Xinhua


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