SIALUBALO BREATHS FIRE, NO FREE RIDE, CDF BENEFICIARIES MUST PAY BACK LOANS
Mpika – Minister of Local Government and Rural Development, Hon. Gift Sialubalo, MP, has issued a stern reminder to beneficiaries of the Constituency Development Fund (CDF) empowerment loans, emphasizing that the funds must be repaid in full to ensure the program’s long term success and sustainability.
Speaking during a CDF monitoring tour in Mpika District, the minister made it clear that the loans are not grants or handouts, but revolving funds intended to empower communities and stimulate local economic activity.
“A loan is a loan and must be paid back. When you don’t pay, you are blocking someone else from benefiting. This fund is meant to uplift many lives, and it can only do that if it is respected and treated with accountability,” Hon. Sialubalo said.
The Minister expressed concern over reports of delayed or non-repayment by some beneficiaries and warned that continued defaulting could jeopardize the future of the CDF loan scheme in various constituencies.
He urged local authorities, Ward Development Committees, and CDF technical committees to enhance public sensitization efforts and ensure that all loan terms are clearly communicated and understood before disbursement.
“CDF loans must be used for the intended purposes whether it’s farming, small scale businesses, or vocational projects. Misusing or defaulting on these funds undermines the spirit of community development and empowerment,” he added.
The monitoring exercise forms part of a broader government initiative to promote transparency, track impact, and strengthen accountability mechanisms around the CDF implementation process nationwide.
The CDF loan facility is one of the key pillars of Zambia’s decentralization strategy, designed to reduce poverty, promote entrepreneurship, and build self-reliant communities.
Issued by:
Liseli Kanyanga (Ms.)
Principal Public Relations Officer
MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT
The Constituency Development Fund represents a commendable effort to foster community development through various projects, grants, and scholarships. Nevertheless, it is essential for the government to assess the effectiveness of the CDF across all stages of fund distribution and project execution. The performance of Local Authorities has been linked to their ability to allocate CDF resources, with those failing to do so being viewed as underperforming, which is not a favorable sign. The distribution of CDF funds presently serve as a key performance metric. Interestingly, many Local Authorities that have successfully distributed CDF funds have still encountered challenges when evaluated against outcome indicators.
However, numerous beneficiaries of grants have experienced project failures, and those who received loans have struggled to provide accountability for these public resources.
Therefore, it is imperative for the government to undertake both program implementation reviews and financial audits to ensure the appropriate use of these public funds. The current situation is quite disheartening, and officials within Local Authorities may be hesitant to voice their concerns for fear of being labelled as working against the government. In summary, there is a pressing need to reevaluate and restructure the CDF to prevent misuse of public funds.
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