ZIGCLAP DISAPPOINTED WITH GOVERNMENT’S SUSPENSION OF CDF LOANS
….the move will further worsen the economic hardships facing citizens
Lusaka… Monday July 28, 2025 (SMART EAGLES)
The Zambian Institute of Governance and Civil Liberties Advocacy Platform (ZIGCLAP) has expressed disappointment over the government’s decision to halt the administration of the Constituency Development Fund (CDF) loan component to Small and Medium Enterprises (SMEs), cooperatives, and clubs.
In an interview with Smart Eagles Organization Executive Director Francis Chipili says the move—reportedly taken due to poor loan repayment rates—would further worsen the economic hardships facing citizens, particularly in light of the ongoing loadshedding and other economic pressures affecting business operations.
The ZIGCLAP Executive Director has questioned the rationale behind suspending the loan facility, arguing that poor loan recovery was a result of weak administration and not a justification for withdrawing financial support altogether.
Mr Chipili urged the government to focus instead on strengthening administrative systems and improving capacity-building efforts to ensure better loan performance.
“The CDF loan initiative is vital to supporting local enterprises and community-based economic activities,” Mr. Chipili said.
“Halting it now undermines the empowerment of SMEs and cooperatives that rely on this support for survival and growth.”
Mr Chipili further called on the government to clarify the current status of CDF disbursements to local councils, as recently announced, and questioned why many loan applicants in various districts had not yet received the funding despite public assurances.
He appealed to the government to reconsider its decision and reinstate the CDF loan component, ensuring that it remains a tool for inclusive development and economic empowerment.
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