China to take over Zambia’s power after it defaults on loan repayment

According to a report by Africa Confidential titled Bills, Bonds and even Bigger Debts, Zambia risks losing its sovereignty to China which is bound to seize its national assets once the government defaults on loans.

“A major worry of the IMF and US is that China’s BRI strategy is first to encourage indebtedness, and then to take over strategic national assets when debtors default on repayments. The state electricity company ZESCO is already in talks about a takeover by a Chinese company, AC has learned.

“The long-term outcome could be effective Chinese ownership of the commanding heights of the economy and potentially the biggest loss of national sovereignty since independence,” the report read.

The report also indicates that a number of projects in Zambia are financed by China even though the amount of debt has been piling over the years.