Govt warned against borrowing

Government should desist from careless borrowing lest future generations get mortgaged to the lenders such as the Chinese, the MDC-T Member of Parliament for Kuwadzana has warned Parliament.


Contributing to a motion raised by Finance Minister Patrick Chinamasa to get approval for the Zimbabwe-China Kariba South Hydro Power Expansion agreement, Nelson Chamisa said some of these loans would haunt generations to come.

The loan under debate was agreed by government and China Export and Import Bank in November last year. The project will cost $355 million with the Chinese meeting 90 percent of the costs. Repayment is over 20 years, with a five year grace period and interest would accrue at two percent per annum. When completed, the station would boost its power generation capacity from 750 megawatts to more than 1,000.

“Government should learn to appreciate implications of these loans on future generations. Chances are that generations to come would be mortgaged to nations extending loans to our nation,” warned Chamisa amid deafening applause from MDC law makers.

Chinamasa vowed to ‘blindly’ sign similar loan agreements in future since ‘even the United States of America borrowed big time from the Chinese’. Contributing to the debate, former Finance Minister Tendai Biti said: “The visible loans are just a tip of an iceberg” and estimated Zimbabwe’s debts at over $12 Billion.

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