Zambian firms sign Sukuk bonds for infrastructure development

A Tanzanian firm, Mayzuh Company has entered into an agreement with five Zambian companies in need of financing using alternative financing instruments called ‘Sukuk’ bonds.

The alternative financing ‘Sukuk’ bonds agreement has been signed with Trans Africa Road Infrastructure Development, Housing Units Project, Renewable Energy Innovation Project, ARMTRACK Agriculture Project, among others.

According to the Chief Executive Officer, Sheik ISSA Mohamed Hemed, the alternative financing Sukuk bond instruments have a total value of US$4.229 billion.

Speaking during the signing of the contracts in Lusaka on Saturday, Hemed said there are two more agreements which will be signed in the near future and the first one with a value of US$15 billion and US$50 million bringing the total to US$19.279 billion for Zambian projects.

Hemed said from the signed agreement, they are seeking financing of two economic corridor roads namely the development of Kipushi-Solwezi-Kasempa-Kaoma-Mongu-Senanga-Katima Mulilo with a price tag of US$1.3billion.

“According to the Africa Development Bank (AfDB) , Africa’s infrastructure investment goal is estimated at more than US$100billion per year, affecting the living conditions of Africans and the continent’s growth global competitiveness,” he said.

Hemed said the other is the development of of Musomena Border in the Democratic Republic of Congo-Mansa-Luwingu-Kasama-Mbala-Nakonde Border bringing the two road magnitude to 1,530kilometers.

“This alternative project financing works through the Capital markets.what Africa and other parts of the world suffer from is from tow things namely technology and capital,” he said.

Hemed said through consultancy, they will assist the entities to engage in the process of linking them with those having capital and looking for opportunities to finance projects.

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