No, China is not taking over Zambia’s national assets - Emmanuel Mwamba

Zambia has come out to strongly refute recent reports suggesting that China is taking over the country’s public assets as a result of debt obligations. In an exclusive interview on CNBC Africa, Zambia’s Ambassador to South Africa, High Commissioner Emmanuel Mwamba, clarified that such reports are entirely false. Mwamba emphasized that Zambia has not relinquished any of its assets to China or any other creditor. He reassured the public that the nation's sovereignty remains intact, and its debt situation is well under control. Contrary to the allegations, Mwamba highlighted that the largest share of Zambia's foreign debt does not originate from China. The looming debt payment of 2022 primarily comprises Eurobonds held by European markets, amounting to a staggering $3 billion. Additionally, the country owes debts to institutions like the International Monetary Fund and other sources, with China accounting for only 30% of its foreign debt. The Minister of Finance disclosed that Zambia's debt to China stands at $2.8 billion, signifying that the widespread concern over Chinese debt dominance is unjustified. Addressing the transparency of the debt structures and loan terms, Mwamba affirmed that the agreements with China are among the most favorable globally. He pointed out that Chinese loans are characterized by their sovereign nature and long-term repayment schemes, unlike the Eurobonds with shorter tenures. The terms and conditions of Chinese debt are considered advantageous, with low interest rates and extended repayment periods, making them a viable option for Zambia's financial needs. Mwamba dismissed the notion that Chinese nationals wield disproportionate influence in Zambia, arguing that other foreign communities, such as South Africans, Indians, Lebanese, and Somalians, also contribute significantly to the country's economy. South Africa, in particular, maintains a substantial business presence in Zambia, owning over 100 companies and fostering robust trade relations. The ambassador stressed that Zambia does not show favoritism towards any specific nationality, and foreign entities are expected to comply with local regulations. Contrary to claims of Chinese dominance, Mwamba highlighted instances where African and European companies received favorable tax incentives, dispelling the narrative of preferential treatment towards the Chinese. In conclusion, Zambia remains steadfast in asserting its sovereignty and managing its debt obligations prudently. The government has reiterated its commitment to upholding transparency in financial dealings and fostering a conducive environment for diverse foreign investments. Ambassador Mwamba's remarks seek to dispel misconceptions and unfounded speculations regarding China's purported control over Zambia's national assets, underscoring the need for accurate information and balanced perspectives in the discourse surrounding international partnerships and economic cooperation.