HH: 750 m Euro bond unnecessary, PF could have raised $1b from windfall tax

UPND leader Hakainde Hichilema has condemned government’s decision to borrow USD 750 million Eurobond.

Mr. Hichilema stated that there is nothing for the PF government to be excited about following the successful issuance of the bond.

He said Zambia does not need to borrow from private lenders adding that the PF government could have generated more than USD 1 billion from the mining windfall tax in two fiscal years.

“In one fiscal year, Mwanawasa raised over USD 400 million, with today’s copper price, Zambia could raise over USD 600 million from the windfall and the increased mineral loyalty taxes and that is close to the USD 750 million they are singing about,” Mr. Hichilema said.

Mr. Hichilema advised the government to explore other prudent ways of mobilizing capital for infrastructural projects than rushing to the Euro market.

He warned that Zambia will quickly get into a debt trap which will negate all the gains the country has made following the HIPC debt relief.

Mr. Hichilema also cautioned PF leaders against reckless borrowing and mortgaging the future of the country.

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