Germany offers Zambia concessional loans


Germany is ready to offer concessional and promotional loans for Zambia’s electricity sector, says Zambia’s Ambassador to Germany Bwalya Chiti.

He noted that this was the first time that the German Federal Ministry for Economic Cooperation and Development through the Development Bank was offering Zambia such loans.

“This opens up significant potential for cooperation and could assist Zambia with significant financing to realise the country’s investment objectives in the electricity sector,” Mr Chiti said.

He said the German government was also rendering support in the introduction and implementation of renewable energy solutions for the country.

“It is a good thing to now see the Federal Ministry of Economic Affairs and Energy, the KfW Bank and other German institutions all partnering with Zambia to ensure that renewables are the future of the country,” Mr Chiti said.

He also said Zambia was to benefit through the German Federal government’s initiative of “One World – No Hunger”.

The initiative was aimed at addressing food security in an effort to eradicate hunger and malnutrition in the country.

“The project will be implemented through bilateral and multilateral development cooperation and through partnership with private sector and civil society organisations,” he said.

Mr. Chiti observed that Zambia, like many other countries had not been spared from the economic slowdown and the adverse economic environment.

“With the economic slowdown coupled with the free fall in global copper prices, the country is faced with huge challenges in its socio-economic development drive, and several sectors which include but not limited to energy, agriculture and mining are witnessing severe setbacks,” Mr Chiti explained.

He however said the Zambian government had put measures in place to remedy the situation.

“Such measures are clearly spelt out in the 2016 National Budget and will address the following: Increase in domestic revenue mobilisation, limit domestic borrowing and reduce budget deficit amongst others,” Mr Chiti said.

He called on bilateral partners including the private sector, to work closely with his Government for the establishment of more new industries in Agriculture, manufacturing of finished products and food processing for export and tourism.

“We are eager to work closely with our cooperating partners including the private sector in fostering a diversified economy in order to speed up the development agenda,” Mr Chiti said.


Categorized | International News

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