UPPZ CALLS FOR LOAN REFORMS FOR CIVIL SERVANTS AHEAD OF AUGUST ELECTIONS
Lusaka… Thursday February 12, 2026
United Prosperous and Peaceful Zambia (UPPZ) President Charles Chanda has called for urgent reforms in the way civil servants access and repay loans, highlighting the growing debt burden among government workers.
Speaking to reporters, Mr. Chanda noted that private financial institutions often consider civil servants to be low-risk borrowers due to their stable employment, making it easier for them to access credit.
However, he expressed concern that many of these loans carry high interest rates, which make repayment difficult and leave many workers trapped in debt.
“Private banks see civil servants as low risk, so loans are easy to obtain,” Mr. Chanda said.
“However, the high interest rates attached to many of these loans make them difficult to repay.”
Mr. Chanda outlined a proposal to address the issue after the August general elections, stating that a UPPZ-led government would introduce a deliberate policy aimed at easing civil service debt through a government-run Special Purpose Vehicle (SPV).
According to Mr. Chanda, the SPV would work in partnership with financial institutions to provide more manageable loan terms and fairer interest rates for civil servants.
He added that the initiative would be guided by clear regulations and independent oversight to ensure transparency and public trust.
“Our SPV will collaborate with banks to offer simpler terms and fair rates,” he said.
“We will publish clear rules and provide independent oversight so that people can have confidence in the system.”
He further emphasized that the policy would be structured to remain affordable for the government while safeguarding taxpayer interests.
Mr. Chanda noted that detailed consultations with financial partners and civil service representatives would take place after the elections to refine the proposal.