IMF warns Zambia on China

The head of the International Monetary Fund Dominique Strauss-Kahn yesterday warned Zambia to assess investment from China in terms of its benefits to the country.

The head of the International Monetary Fund Dominique Strauss-Kahn yesterday warned Zambia to assess investment from China in terms of its benefits to the country.

Strauss-Kahn, who arrived in Zambia on Wednesday from South Africa, made the comments during a courtesy call to Finance Minister Situmbeko Musokotwane in the capital Lusaka. He later also met President Rupiah Banda.

Chinese investment in Africa's largest copper producer to date stands at about $1billion (R7,4billion), making it by far the biggest investor.

The Asian powerhouse owns several mines and manufacturing facilities in Zambia.

Last week, Banda paid a week-long visit to China, where he signed a number of agreements on further inward investment in the mining, energy, agriculture and manufacturing sectors.

Zambia's political opposition has been very critical of Chinese investors, accusing them of failing to meet basic labour standards.

Strauss-Kahn said he did not, "in principle ... see any kind of problem in receiving investment from China. But these kind of deals should be beneficial to Zambia". - Sapa-dpa

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