ANC hails govt decision
Thursday, 21 June 2012 12:00
JOHANNESBURG — The South African ruling African National Congress yesterday lauded the government’ s decision to invest two billion dollars in the Crisis Fund of the International Monetary Fund, saying the loan would help prevent another global economic crisis.
“We believe that South Africa, as a member of both the United Nations and the G20, has an obligation to join hands with the rest of the world in averting a repeat of the last global economic meltdown in the 2008-2010,” ANC spokesperson Jackson Mthembu said.
At the just concluded G20 summit in Los Cabos, Mexico, President Jacob Zuma announced that his country would join other countries in contributing to the Crisis Fund, which is part of an initiative to prevent global economic crisis that is threatening the world economy.
The fund will serve as a backstop in the event of further deterioration in the eurozone situation.
“Our contribution together with the rest of the world countries will enable the IMF to intervene decisively using the Crisis Fund that has been established, in the imminent threat to the world economy,” Mthembu said in a statement.
Grouping 188 countries, IMF works to foster global monetary co-operation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
The ANC said that if the world economy collapsed, triggered by the faltering of the American economy, its impact would engulf the entire world and no country would be spared.
As a result of the last world economic meltdown, South Africa lost one million jobs and its job-creation forecast had to be reviewed downwards and economic growth trajectory had to be equally revised downward, Mthembu said.
“It is therefore in our national interest that we invest in this initiative to prevent future recurrence. We believe that while this is an obligation confronting the world economy’s ills, it is also a secured investment owing to the credibility of the IMF and the interest it will earn for South Africa,” Mthembu said.
Mthembu emphasised that the money is not a donation to the IMF and that South Africa has no capacity to donate cash to the IMF.
“This is an important point to make that this is not a donation as developing countries are not expected to donate to the IMF and therefore this remains a loan to be repaid to South Africa and the South African people as a whole,” he said.
Announcing the move on Tuesday, the South African presidency said the funds would come from the country’s foreign reserves and would be drawn down only if they are needed and only after other resources have been depleted.
If the funds were drawn down, they would ultimately be repaid and continue to earn interest over this period, the presidency said. — Xinhua.
Labels: ANC, IMF, LOANS
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Unzasu welcomes students' loan Facility
By Lovely Kayombo
Mon 18 June 2012, 13:22 CAT
UNIVERSITY of Zambia Students' Union president Ali Tunkara has welcomed the government's decision to introduce the loan facility, saying it will rid of the corruption that characterised the acquisition of a bursary for study at the institution.
Education minister Dr John Phiri says the government will soon phase out the bursary scheme for higher learning institutions because of serious flaws in the way the current scheme is being administered.
Dr Phiri said the bursary scheme would be replaced with a students' loan scheme which would compel beneficiaries to pay back after completion of their tertiary education.
He said the current bursary system does not meet the expectations of the general public and does not benefit vulnerable students.
But Tunkara advised the government to find strategies that would allow students to repay the loans.
He said the loan would make students focus more on academic issues rather than activities that bring anarchy because they would realise that at the end of their training they willhave to pay back the loan.
"Most students will actually have access to the loans unlike what has been happening previously, where a few had access to the bursary scheme not only here at UNZA but also students from colleges that have been upgraded like Evelyn Hone College, NIPA and NRDC...there is a lot of corruption in the administering of these bursaries. You find that one who has both parents is given 100 per cent bursary while the one with no parents will be given nothing at all," he said.
"So we are going to have a situation where we are going to be responsible youths that are going to concentrate more on academics unlike indulging in activities that will result in anarchy. We have realised that most of the students that demonstrate are actually those that are on bursary and they know that they will be back even if the institution is closed down."
Meanwhile, the University of Zambia Council's ad hoc committee on students loan chairperson Dr Euston Chiputa said the loan would be guided by an Act of Parliament which would be tabled at the next sitting of Parliament.
"There will be an Act of Parliament and a stakeholders' meeting has been called by the Ministry of Education and Ministry of Justice to discuss the bill and finalise on the modalities," said Dr Chiputa
Labels: LOANS, STUDENTS, UNZASU
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India to offer Zimbabwe $100m credit
Posted by By Our reporter at 10 January, at 17 : 34 PM
Indian Prime Minister Manmohan Singh speaks to African leaders during the first India-Africa Forum Summit in April 2008
India has mooted a $100 million line of credit (LoC) for improving health infrastructure in Zimbabwe, saying that Indian
public sector undertakings (PSUs) would assist in reducing the infrastructural deficit and contribute to the African nation’s economic development.
“India would assist Zimbabwe in reducing its infrastructural deficit. Indian PSUs like IRCON, RITES and WAPCOS which had earlier also executed infrastructure projects in Zimbabwe could participate in executing fresh projects,” said Indian Commerce Minister Anand Sharma in a meeting with Zimbabwean Finance Minister Tendai Biti at Harare Monday, an official release said here Tuesday.
“A team from India would be visiting Harare next week to discuss the proposal for LOC of $100 million for strengthening of health infrastructure,” Sharma added.
The two ministers also agreed to speed up the execution of the Pan-African e-Network project.Sharma also expressed concern over Zimbabwe’s Indigenization and Economic Empowerment Act, as it could deter further investments by Indian companies in Zimbabwe and also urged on the need for simplifying the process for issue of business visas to Indian businessmen.
“It was suggested that a one-year multiple entry visa could be issued to encourage potential Indian investors visiting Zimbabwe,” the statement said, citing Sharma.
Sharma also said that Indo-Zimbabwe ties would get further strengthened through the setting up of a rural technology park and a food testing laboratory in Zimbabwe by India. This was one of the commitments made by India during the India-Africa Forum Summit held at Addis Ababa in May 2011.
Indian Times
Labels: DEBT, INDIA, LOANS, ZIMBABWE
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COMMENT - Only rightwing tools blame minority loans for the global economic recession. This recession has been 30 years in the making, through deregulation, privatisation and corporate capital, which lead to not only the subprime crisis. The subprime crisis is merely a subset of the consumer credit crisis, caused by keeping interest rates artificially low for a prolonged period of time (1992 onwards) by the Federal Reserve. The reason that it was kept low, is because after the neoliberal policies of the 1980s, the economy was damaged to such an extent, that it did not bounce back on it's own. However, in certain rightwing circles, it is convenient to blame minorities, instead of dealing with the fact that neoliberalism is a toxic ideology, which has been destroying economies 3 times this century (the Bank Panic of 1907 [deregulation], the roaring twenties followed by the Great Crash of 1929 and the Great Depression, then again in the 1980s (roaring 80s, followed by the Crash of 1987, followed by a recession). Deregulation leads to corruption and criminality, just as privatisation leads to fleecing the public and reduces incomes, which reduces demand. Bank deregulation leads to bank scandals and crisis (Saving & Loans, junkbonds, and now the subprime crisis, and more than that, the giant derivatives bubble).
BoZ warns against rise in salary-based loans
Written by Chiwoyu Sinyangwe
Tuesday, September 29, 2009 4:55:35 PM
BANK of Zambia (BoZ) has warned that increasing salary-backed loans
risks plunging the domestic financial sector into a subprime crisis, similar to
the source of the global economic recession, as most recipients become too overburdened to pay back.
And BoZ has cautioned financial institutions in the country to explain clearly to customers the implications of the loans to avoid the acrimony experienced in the recovery process of some loans from the dismissed Copperbelt miners.
The subprime crisis which started in the United States in 1997 ripped apart the Western financial institutions, triggering the worst global economic recession in almost 80 years.
Latest statistics from the Central Bank indicate that although commercial banks and other non-baking financial institutions had slowed down the extension of loans to most key sectors since last December in the advent of the global economic crisis, personal loans had continued to account for the highest share of the total lending portfolio by the country’s financial sector.
According to latest official estimates from the Central Bank, during the first half of this year, household (personal loans category) received about 25.4 per cent of the total credit portfolio from the country’s financial sector, followed by the agriculture sector at 15.8 per cent; manufacturing at 10.3 per cent while wholesale and retail credit took up 9.4 per cent.
The average sectoral lending portfolio by the country’s financial sector declined by almost 1.0 per cent in the first half of this year compared to the same period last year.
However, despite the decline in credit availability during the first half of this year, financial services and the transport and communication sector recorded marginal increase in the share of loans from the financial sector to 8.5 per cent and 7.9 per cent from 7.9 per cent and 7.0 per cent respectively during the period under review.
But Dr Fundanga stated that the BoZ would prefer to see non-banking financial institutions increase lending to the private sector to spur economic growth in the country unlike to the households which mainly went into consumption.
“The chairperson [BoZ governor Dr Caleb Fundanga] reiterated concern over the exposure to households as it could lead to sub-prime lending problems experienced in the United States as there was a risk that customers would be overburdened with debt so much that some would eventually fail to pay,” according to minutes of the Governor’s meeting with chief executive officers of non-banking financial institutions held recently and made available to the Business Post. “Dr Fundanga further indicated that it would be desirable that domestic lending was concentrated to the private sector in order to boost production in the nation.”
Most market analysts contended that non-banking financial institutions preferred to extend credits which were salary-backed at the expense of the private sector because households were considered less risky as they were backed and guaranteed by employment contracts.
And Dr Fundanga urged non-banking financial institutions not to give loans to their clients without explaining the full implications of the transactions.
Recently, there was a vicious confrontation on the Copperbelt when Barclays Bank Zambia froze some of the retrenched miners’ terminal benefits in an attempt to recover the loans.
“BoZ governor urged non-banking financial institutions to clearly explain the implications of the loan agreements to their clients to avoid misunderstandings as was the case between lending institutions and miners on the Copperbelt,” the minutes read in part.
“The chairperson [Dr Fundanga] gave an example of the miners on the Copperbelt who lost terminal benefits on account of borrowing from the commercial banks following the closure of some mining companies.”
Labels: BOZ, LOANS, SALARIES
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Chinese loan to Zimbabwe, a lesson in statecraft
Philip Murombedzi
Thu, 02 Jul 2009 01:14:00 +0000
PRIME MINISTER Tsvangirai on Tuesday faced a tough challenge of announcing a loan package that was availed by a traditional Zanu PF ally, China. As the prime minister, he had to make the announcement that more money had been raised in his absence without the need for globetrotting.
We all know that it was not solely the Minister of Finance who had negotiated that deal as the Prime Minister's statement made us believe.
"While I was away, government through Finance Minister Tendai Biti also secured lines of credit from China totalling 950 million dollars (672 million euros)," said the Prime Minister.
That was all he said and then went on to announce that he had raised US$500 million during his EU and US state visit.
He said his office would provide a breakdown of that pledge "in due course". Why "in due course" when he already had the total figure? How did they compute that figure in the first place?
The statement was meant to counter the announcement of a hefty Chinese loan.
At the end of the EU, US tour the PM's spokesman, James Maridadi, had released a statement saying the figure raised by the PM was approximately US$200 million. How it jumped to US$500 million is anyone's guess.
Interestingly, PM Tsvangirai added that: "They (the West) also pledged more support which will be guided by the way in which we meet our own political commitments as outline in the Global Political Agreement."
This is not exactly true. German Chancellor Angela Merkel summed it up very well during the PM's visit to that country.
According to Germany, and the rest of the EU, that promised support was predicated on the return of "expropriated land", that is return of black-owned farms to former white farmers -- something the GPA is clear on.
The land redistribution exercise is "irreversible", says the GPA.
These are the "political commitments as outlined in the Global Political Agreement" that the PM is talking about.
The issues of central bank governor Dr Gideon Gono and attorney general Johannes Tomana are not in the GPA.
They are matters of opinion and goodwill, with no legal effect.
"Restoration of human rights" and "respect for property rights" are processes, not events and are abstract and not easily measurable.
The PM should know this, having been involved in politics for a long time. In any case these issues need fundamental political value changes and do not happen overnight.
When he visited Western capitals, the prime minister was looking for an immediate rescue package and not seeking to reassure anyone that Zimbabwe was on a "recovery path".
Zimbabwe's needs are immediate.
The interesting twist in the PM's statement that 'government through Finance Minister Tendai Biti' secured the deal, is that we all know that the MDC-T party's Secretary General Biti does not have sufficient political clout to convince the Chinese to offer such a credit line without the Zanu PF party's involvement.
There is also the added coincidence that the announcement was made a few days after Defence Minister Emmerson Mnangagwa and a Zanu PF team was dispatched by President Mugabe to the East, to China.
The Chinese were unequivocal in their support for the Zanu PF party, as much as the West was supportive of "Mr Tsvangirai's government".
The moral of this story is that the MDC-T party has to now transform its thinking and view itself as part of government, not as an independent unit in that government.
The West also has to accept that reality.
The PM's trip should have served to highlight that issue, rather than exchange unhelpful diplomatic niceties like President Obama's gesture of giving PM Tsvangirai a personalised autographed copy of 'Stride Toward Freedom' by Dr. Martin Luther King.
Not only was this gesture politics very patronising, but had the effect of whitewashing the whole mission of the PM's visit and the whole state entourage.
Protocol has to be followed. Zanu PF could have made a big issue about the Chinese loan, but it never did, allowing the PM and the finance minister to make the announcement. The announcement was the mandate of the PM and the relevant ministry and they are all in one government with Zanu PF.
The credit line was availed to the inclusive Government of Zimbabwe, not to NGOs like the West did, so it was proper that PM Tsvangirai make the announcement.
If the MDC-T party then boycotts crucial Cabinet meetings and continues playing yo-yo within this inclusive Government, it will only prove its political immaturity and lack of understanding of statecraft and how governments work -- as systems whose parts are all inter-related and working in harmony to achieve agreed objectives.
_____________________
Philip Murombedzi
philipmurombedzi@yahoo.com
Labels: CHINA, LOANS
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Business can’t be run without borrowing, says Kapumpa
Written by Edwin Mbulo in Livingstone
Monday, April 13, 2009 3:59:36 AM
INSTITUTE of Directors (IoD) president and prominent lawyer Mumba Kapumpa on Saturday said business cannot be run without borrowing money.
And Kapumpa has appealed for transparency in the management of all sectors in both private and public institutions.
During the launch of the IoD in Livingstone, Kapumpa said the IoD was a collection of dedicated people who aimed to make change in the running of organisations.
“IoD is a group of dedicated people who want to make organisations, companies and government officials such as permanent secretaries, town clerks, trade unions that have dealings to the social economic development of Zambia realise that they should run these organisations in a transparent manner,” he said.
He said business was not about making profits.
Kapumpa said corporate governance must be above board.
“Do not pretend to put up a tender when you have already chosen someone, yes secrets are important in doing business but be open, be accountable and responsible. Don’t run away from the consequences of your actions,” said Kapumpa.
And Southern Province permanent secretary Darius Hakayobe said the IoD represented interests of directors in facilitating the economic well being of Zambia.
Labels: GOVERNANCE, IOD, LOANS, MUMBA KAPUMPA
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StanChart to study loan liquidations on Copperbelt
Written by Chiwoyu Sinyangwe
Wednesday, February 04, 2009 11:06:13 AM
STANDARD Chartered Bank Plc has underplayed fears by some miners on the Copperbelt that they stand to lose out on their terminal benefits as the bank recovers the loans.
Reacting to concerns by miners on the Copperbelt that they were losing out on their terminal benefits because Standard Chartered Bank Plc was recovering the loans to the extent of depriving them of their terminal benefits, bank southern African region head of corporate affairs Luke Njovu said the bank had since dispatched a special team to the area to study the situation.
Njovu said although the current situation on the Copperbelt had been driven by the collapse in copper prices, forcing mining companies to downscale production and others closing down, the bank wanted to emerge from the problem in a “win-win” situation with its clients.
“The whole issue stems from perception that Standard Chartered Bank Plc wants to recover 100 per cent from the outstanding loans. That is not correct,” Njovu said. “We have sent a special unit to the Copperbelt to see how best the loans could be liquidated in a ‘win-win’ situation. You have to appreciate that those loans are not uniform and at the same time are insured. So, for those who had been on our books for more than 60 months, we will only recover 50 per cent and the remainder the bank will take it up with the insurers. The challenge might be with those of our clients who have been on our books for less than six months as those don’t qualify for insurance and that is where the bank comes in and want to discuss with our esteemed customers on how to liquidate the loan completely.”
Njovu claimed that Standard Chartered Bank Plc wanted to recover the loans with a “humane face.”
He explained that although the loans, which are believed to have been insured by Madison, were salary backed and that the current job loses meant a loss of income for the affected miners, Standard Chartered Bank Plc would also look at other revenue earning avenues for former miners.
“They are still our customers and we take a long-term view of our business relation with them which does not end with them losing employment because of this unfortunate development,” said Njovu.
Labels: LOANS, STANCHART
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Farmers get reprieve on equipment loans
Business Reporter
FARMERS who accessed farming equipment under the Farm Mechanisation Programme have been granted temporary reprieve by the Reserve Bank of Zimbabwe from repaying loans on the equipment this season. Reserve Bank of Zimbabwe Governor, Dr Gideon Gono told a Chiefs Council’s meeting in Bulawayo last week that the central bank would not be too stringent on the repayments because the season had not gone according to expectations due to excessive rains.
He was responding to a question from a chief who had asked to have proceeds from the sale of his maize to be channelled towards repayments for the tractor he had received under the mechanisation programme.
Dr Gono told the chiefs that the Reserve Bank of Zimbabwe was cognisant of the difficulties faced by farmers during the season and would want them to have leeway to meet some of their obligations.
"We know that you have issues that you need to address and we will want you to use that money to address those issues.
"Besides we are the ones who should be asking about that money but we have not made any demands," he said.
At least 2 725 tractors, 1 846 ploughs, 1 733 harrow, 746 boom sprayers, 608 fertiliser spreaders and 466 planters have so far been disbursed under the three phases of the Farm Mechanisation Programme.
Other equipment disbursed include 105 combine harvesters, 210 hay bailers, 3 000 grinding mills, 5 000 generators, 680 motor bikes, 78 000 scotch carts, 46 200 cultivators, 2 000 planters, 100 000 ploughs, 130 000 harrows and 92 000 knapsacks.
Meanwhile, Dr Gono said the central bank would be going ahead with its programme to reward farmers who have excelled in terms of production this season.
During the launch of the second phase of the mechanisation programme last year, Dr Gono said that farmers who excelled during the current season and delivered the most tonnage of maize to the Grain Marketing Board would be rewarded with fully paid up holidays within the region and spending money.
Dr Gono said that his officials who were on a maize-buying mission in different parts of the country had the dual responsibility of evaluating farmers who could be considered for the awards.
He however said they had relaxed their conditions and would also consider names of farmers that would have been forwarded by chiefs, who might have excelled but not necessarily have delivered their crop to the GMB.
Labels: FARMERS, GIDEON GONO, LOANS, ZIMBABWE
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Ratio of loans to GDP too low for growth, says Wigwe
By Chiwoyu Sinyangwe and Joan Chirwa
Wednesday May 21, 2008 [04:00]
ACCESS Bank Zambia Limited has observed that the ratio of loans to gross domestic product (GDP) in most African countries is too low to support the continent's growth in entrepreneurship. During the dinner hosted on Monday evening to celebrate the granting of a banking licence by Bank of Zambia (BoZ), Access Bank Zambia deputy managing director Herbert Wigwe also said the bank would strive to ensure that it achieved total market dominance in the domestic market.
"Except South Africa, in all African countries the ratio of loans to the GDP is anything between 20 to 39 per cent. This is a big shame," Wigwe said. "And with this situation, you find that you can't create local entrepreneurs in the country because people are not willing to lend them any money."
He also deplored the practice of some multinational financial institutions, which he said tended to lend to governments through government securities at the expense of local entrepreneurs.
"Because of those practices you have, the banks just banking all their money and putting them into treasury bills...now if you have a lot of international institutions that don't have your interests at heart and are extractive in nature, what you tend to find is that kind of phenomenon. It's one of the things we have to move away from if we have to ensure that we have several more entrepreneurs growing, people who are supporting the real sector and therefore leading to significant economic growth of the country."
Wigwe also observed that the banking industry on the continent was too shallow and that it did not have enough capital to support growth in real sector growth.
"So, the level of financial inclusions is so thin that the size of the informal economy is much larger than the formal economy and the primary reason is that you have banks that don't have enough capital and therefore their capacity to support growth of the real sector is so limited," said Wigwe.
Labels: ACCESS BANK, BOZ, GDP, LOANS
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Kopa asks govt to consider giving chiefs loans for renovation of palac
By Sandra Mulowa and Agness Changala
Thursday April 17, 2008 [04:00]
SENIOR chief Kopa of Northern Province has asked government to consider giving chiefs loans to renovate and construct their palaces. And the House of Chiefs has constituted a team of seven chiefs to help resolve chieftainship wrangles in Petauke district including those involving paramount chief Gawa Undi's chiefdom.
Debating a motion moved by chief Hamusonde of Southern Province urging the government to construct palaces for chiefs and to renovate dilapidated ones, chief Kopa said it would be awkward to have good cars parked outside "thatched dilapidated palaces".
Chief Kopa's remark comes after an announcement that the government had purchased, through a loan, second hand vehicles for chiefs countrywide.
"Thatched houses can catch fire anytime and the vehicles can be affected. Government can also give us loans like it did with the vehicles so that we rehabilitate and construct new palaces," he said.
Other chiefs who contributed to the debate said many were living in shame and misery.
They said it was shameful for a minister, politician or president to visit a chief living in a palace that is "almost an insult". They also said it was an insult for flags to be placed at such deplorable thatched palaces.
The chiefs said some huts were so low that chiefs bend and sometimes hit their heads against the roofs when getting in and out of their palaces.
Chieftainess Chiyaba said she was living like a mad person because windows of her palace were broken during the liberation struggle.
She said she could not force her subjects to build a palace for her due to human rights. "We also need to have tiles and proper toilets," she said.
Chieftainess Nyakulenga of North Western Province wondered if it would be offline to use part of Constituency Development Funds to renovate palaces.
And local government minister Sylvia Masebo responding to senior chief Nzamane's motion urging the government to ensure provision of clean and safe drinking water in rural areas said the government was committed to ensuring that by 2015, accessibility to water was increased to 77 per cent from the current 37 per cent.
She urged the chiefs to revise the structure of their villages for placement of boreholes.
Labels: CHIEFS, LOANS
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Japan to start single loaning system to developing countries
By Joan Chirwa in Nagoya, Japan
Thursday November 01, 2007 [03:00]
DEVELOPING countries will soon start receiving technical assistance loans and grants under one financing arrangement from the Japanese government. Japan International Co-operation Agency (JICA) Chubu director general Hiroshi Yoneda said streamlining loan and grant disbursement for technical co-operation to developing countries could enhance availability of resources.
“Unlike the current arrangement where JICA and the Japan Bank for International Co-operation (JBIC) both provide technical loans and grants to developing countries, the new system will make us the largest bilateral development agency,” said Yoneda when 18 African journalists visited JICA Chubu on Tuesday. “It is important that money is put together and then given to the Least Developed Countries (LDCs) for technical assistance. This loaning programme will be flexible.”
Yoneda said the single loaning system from the Japanese government would make available resources of about US $10 billion for 155 countries currently receiving aid from Japan.
He further said Japan’s Official Development Assistance (ODA) was decreasing due to unsettled debt by some developing countries.
Most African countries will however not be affected by the trend since the Japanese government is making efforts to double technical and development aid to the continent by the end of this year.
In Zambia’s case, total Official Development Assistance (ODA) to the country up to Japan’s fiscal year 2005 totalled 49.49 billion Yen (approximately K1.6 trillion).
Japan has also provided debt cancellation of more than 74 billion Yen (approximately over K2.4 trillion) upon Zambia’s attainment of the HIPC completion point at the end of 2005.
“Japan’s ODA is not increasing, but it is rather decreasing because we have a lot of debt. Overall ODA is increasing but Japan’s contribution is decreasing,” Yoneda said. “However, there are countries that are really coming up such as the United Kingdom. Other European countries are also increasing ODA.”
Japan’s ODA last year dropped to US $11.6 billion from US $13.1 billion in 2005.
Its total Gross Domestic Product (GDP) stood at US $4.3 trillion in 2006, ranked second after the United States of America (USA) whose total GDP in 2006 was recorded at US $13.2 trillion.
Japan is widely known for its technology and automobile industries, making it one of the world’s largest exporters of automobiles and other technological machinery.
Labels: DEVELOPMENT, JAPAN, JBIC, JICA, LOANS
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Zambia's loan contraction process is not transparent, says Lewanika
By Bivan Saluseki
Wednesday October 17, 2007 [04:00]
Western Province Jubilee Zambia secretary Mwangelwa Mbikusita-Lewanika has said Zambia's limits and purposes of getting new loans were highly ambiguous and not open to scrutiny. Lewanika yesterday said Zambia had in the past borrowed excessively and recklessly, and did not manage the debt well.
"The level of public expenditure, in particular on developmental projects, has not been commensurate with the high levels of borrowing, especially during most part of the first 10 years of the Third Republic, as evidenced by the high levels of plunder," he said.
Currently, the legal prerogative to procure new loans lies in the hands of the Minister of Finance and National Planning and Parliament does not need to approve the entry into loan agreements.
"This anomalous situation must be stopped. To achieve prudent procurement of loans by the government of the day, the loan contraction process should be enshrined into the national constitution," he said.
Lewanika said there were problems or shortcomings in the ways and means the debt has been incurred and that was a direct result of the fact that the legal framework governing the contraction process was inadequate.
He said the current loan contraction process was not transparent and lacked accountability, noting that under the current legal framework, the loans and guarantees (authorisation) Act, Cap 366 of the Laws of Zambia, gave a blanket authority to the government to borrow.
"In view of that, there is need to put in place measures that would ensure that the resources will be spent on Zambian people, especially the poor. Such measures include the Debt Mechanism, which is a broad participatory, transparent and accountable way of disbursing toward poverty eradication any savings coming from debt relief or cancellation," he said.
He suggested that the Constitution and Act of Parliament must provide the authority to borrow while terms of reference or guidelines to negotiating loans should be in the statute itself, at least, as regulations.
He said the public should be involved in the loan contraction process.
"Parliament should have its constitutional powers to approve all loans and have them gazetted and made available for public examination before being signed," he said.
Labels: DEBT, JUBILEE ZAMBIA, LOANS, PARLIAMENT
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Let ECZ work independently, Phiri advises govt
By Chibaula Silwamba
Sunday April 01, 2007 [04:00]
GOVERNMENT should leave the Environmental Council of Zambia (ECZ) to do its work independently, Luanshya Patriotic Front (PF) member of parliament Jean Phiri has told Parliament. And Sinazongwe UDA member of parliament Raphael Muyanda told Parliament that there is need for a law that will ensure that families of people eaten by crocodiles are compensated. Contributing to the debate on estimates of expenditure for the Ministry of Tourism, Environment and Natural Resources on Friday, Phiri said the government should not interfere in the operations of the ECZ.
Phiri also said women should be given loans under the Tourism Credit Development Facility for them to engage in tourism businesses. She said the Zambian economy would only grow when women are empowered.
And Muyanda said people that were attacked by crocodiles should be compensated. “People living along the rivers have been eaten by crocodiles but no one has been compensated,” Muyanda said. “I’m appealing to the minister to bring a Bill to this House so that those unfortunate enough who are eaten by crocodiles should be compensated.” He said there were a lot of crocodiles in the rivers, which should be cropped. Muyanda said the crocodiles were last cropped in 1961. He also said politicians should not be segregated from accessing the Tourism Credit Development Facility funds. “Let politicians access tourism fund,” he said.
Meanwhile, Kalulushi PF member of parliament Anson Simama said the ministry had neglected the forestry department. Simama said most foresters in districts did not have transport. However, Simama said if the forestry department was independent it was capable to be self-sustainable. Simama, a forestry expert, said there was need for strict monitoring of the cutting of trees. Simama said trees took 35 years to grow hence the need to curb unnecessary cutting of trees.
Labels: ECZ, LOANS
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