Zambia has denied reports that China is taking over its state utility provider to recover a $6 billion debt.
The Southern African country says it never used the utility provider Zesco as collateral. It is now pegging the debt it owes China at $3.1 billion instead of the alleged $6 billion.
America’s national security advisor John Bolton last week alleged that China is exerting its influence as it makes move to take over Zesco.
But in a sharp rebuttal Zambia’s presidential spokesman Amos Chanda told journalists that the figure of between $6-$10 billion given by Bolton was wrong.
Statistics available reveals Zambia’s total external debt was now $9.7 billion including $3.1 billion owed to China.
The International Monetary Fund IMF rejected Zambia’s borrowing plans in February. It said they risked making it’s debt load harder to sustain.
African economies burdened by debt to China
Already economies in East Africa reportedly owe China some $29.42 billion they borrowed over the past one decade.
The loans were secured to grow the transport, communication, manufacturing and energy sectors of these economies.
There are concerns the repayment of these loans is becoming a burden, impacting the growth of these economies.
China this year said it will provide $60 billion in financial support to Africa. This is part of effort to continues to strengthen its relations with the continent.
President Xi Jinping said at this year’s China-Africa summit that the financial support for Africa will include government assistance and investment.
Source: Africafeeds.com
