BEIJING, Jan. 31 (Xinhua) -- The key to easing Zambia's debt burden lies in the participation of multilateral financial institutions and commercial creditors in the debt relief efforts, a Chinese Foreign Ministry spokesperson said on Tuesday.
Spokesperson Mao Ning made the remarks at a daily press briefing in response to a query regarding Zambia's debt restructuring.
Mao said China attaches high importance to Zambia's debt issue, adding China has played a constructive role in handling Zambia's debt under the G20 Common Framework.
According to figures released by Zambia's Ministry of Finance and Planning, Mao said multilateral financial institutions account for 24 percent of the country's foreign debt, while predominantly Western commercial lenders account for 46 percent.
"The key to easing Zambia's debt burden thus lies in the participation of multilateral financial institutions and commercial creditors in the debt relief efforts," she said.
Africa's debt issue is essentially about development, Mao said, adding that China's financing cooperation with Africa has always been focused on enhancing Africa's capacity for independent and sustainable development. Over the years, China has supported African countries on a large number of infrastructure and industrial projects as a source of investment and technology, which has visibly contributed to local economic development and people's livelihood, she added.
A case in point is the Kafue Gorge Lower Hydropower Project (KGL) in Zambia, which has been financed and built by China. The KGL has been put into operation and has a total installed capacity of 750MW. It will reduce carbon emissions by 663,500 tonnes per year. This heavily-invested project has generated significant economic benefits and contributed notably to Zambia's fiscal revenue, she noted.
"We believe that loans for projects like the KGL has helped bolster Zambia's debt sustainability, not otherwise," the spokesperson said. ■