Only two of 193 beneficiaries repaying CDF loans in Mambwe, as Council threatens legal action

Mambwe Town Council has launched a rigorous loan recovery process targeting beneficiaries of the Constituency Development Fund (CDF) loans who have defaulted on repayments since 2022.

In a statement issued on Wednesday, Council Assistant Public Relations Officer, Grace Lungu, expressed concern over the extremely low repayment rate under the Youth, Women, and Community Empowerment Loan component of the CDF.

“This shortfall is significantly hindering the successful implementation of the program, which is intended to empower local communities and improve livelihoods,” Lungu stated.

Between 2022 and 2024, the Council reportedly disbursed a total of K7,450,270, with an expected recovery of K8,656,571, inclusive of principal and interest.

However, as of April 2025, only K887,454.37 had been recovered — representing a small fraction of the expected amount.

Lungu reminded the public that recovered funds were meant to revolve, allowing other youth and women groups to access the empowerment initiative.

“Loan defaults not only affect implementation of this component but also deny other potential beneficiaries access to these vital funds,” she said.

Despite several engagements and sensitization campaigns, Lungu lamented that only two out of 193 beneficiaries had consistently met their repayment obligations.

As a result, the Council has resolved to begin issuing legal demand notices to defaulters in accordance with CDF Guidelines and the Public Finance Management Act of 2018.

The Council further appealed to civic leaders to engage loan recipients in their respective wards and encourage them to honor their obligations to avoid legal consequences.

“The Council is committed to working with loan beneficiaries to establish flexible repayment plans where necessary. However, defaulters are urged to urgently engage the Council before legal proceedings are fully enforced,” Lungu warned.

She reaffirmed the Council’s commitment to accountability, transparency, and sustainability in managing public funds.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.