Stakeholders Urge Government to Reconsider Suspension of CDF Loan Component

Stakeholders are calling on the government to reconsider its move to suspend the loan component of the Constituency Development Fund (CDF), following Vice President Mutale Nalumango’s recent directive citing high loan default rates.

Speaking in response, Dr. Gabriel Mapulanga, Executive Director of Caritas Zambia, has urged authorities to adopt a more balanced and strategic approach. He emphasized the importance of reviewing and strengthening the CDF loan structure rather than implementing an outright suspension.

Dr. Mapulanga acknowledged the challenge of loan defaults, which have negatively impacted some empowerment initiatives. However, he noted that the loan facility remains a vital source of capital for small businesses and plays a significant role in community development. In an interview with Phoenix News, he advocated for comprehensive reforms, including enhanced monitoring and accountability mechanisms, to improve the program’s effectiveness and sustainability.

Echoing similar sentiments, Jimmy Maliseni, Programmes Manager at the Alliance for Community Action, argued that halting the loan component would not address the core issues affecting the CDF. He called for a broader and more inclusive reform process that addresses systemic weaknesses across the entire fund framework.

Maliseni emphasized that tackling the root causes of mismanagement and improving transparency would deliver better results than simply suspending loan disbursements.

As debate over the future of the CDF loan scheme intensifies, stakeholders are urging the government to implement reforms that safeguard the fund’s impact, particularly in empowering local communities and fostering economic resilience.

The call for a strategic review comes as the Ministry of Local Government and Rural Development begins consultations to evaluate the feasibility and implications of the proposed suspension.

Stakeholders remain united in their message: reform, not suspension, is the key to unlocking the full potential of the CDF loan component.