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Foreign companies are free to borrow funds from Zambian lending institutions – Musokotwane

• Foreign companies have right to borrow funds from Zambian lending institutions as this helps boost country’s revenue base.
• Government has no problem with Macro Ocean Investment Consortium borrowing resources from National Pension Scheme Authority
• This will benefit the people of Zambia as resources will be sourced within the country.

Minister of Finance and National Planning says foreign companies have the right to borrow funds from Zambian lending institutions as this helps boost the country’s revenue base.
Speaking during an online interactive forum, Dr. Situmbeko Musokotwane stated that the Ministry has no problem with Macro Ocean Investment Consortium borrowing resources from National Pension Scheme Authority (NAPSA) to construct the 327 kilometres Ndola- Lusaka dual carriageway under the Public Private Partnership (PPP) Model.
Dr. Musokotwane said this will benefit the people of Zambia as resources will be sourced within the country.
“Zambian lending institutions have been lending out Money to foreign companies hence NAPSA is not the first to lend to Macro Ocean Investment. If foreign companies start shunning from borrowing within the country, it means these financial institutions will lose out on business,” he explained.
On 28th February 2023, Government entered into a Concession Agreement with Macro Ocean Investment Consortium at a total cost of US$ 649,976,167 for the execution of the project on design, finance, build, maintain, operate and transfer basis in line with the provisions of the PPP Act Number 14 of 2009.
Different stakeholders have expressed concern on why Government would want to allow Macro Ocean Investment Consortium to borrow resources from NAPSA for the construction of the road when the company is supposed to source for own resources.
Meanwhile, Dr. Musokotwane said Government is keenly engaging China on the need to help the country restructure its debt.
“We have had engagements almost on a weekly basis with China and they have expressed interest in helping Zambia with debt restructuring,” he added.

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