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The Ministry of Local Government and Rural Development has announced the completion of the restructuring of the 2026 Constituency Development Fund (CDF), paving the way for the release of an initial equity contribution of about US$100 million towards the Presidential Constituency Energy Initiative (PCEI).
During a recent press briefing at State House, President Hakainde Hichilema said government would establish solar power stations in every constituency to expand access to electricity and mitigate the impact of ongoing power shortages on communities.
President Hichilema explained that providing at least two megawatts of solar energy per constituency would help deliver more reliable power and reduce the effects of load shedding.
The Project Manager for the PCEI will be the Ministry of Energy through its relevant agencies, while the Ministry of Local Government and Rural Development will provide equity through the Ministry of Finance and National Planning.
In a statement issued in Lusaka on Thursday, Ministry of Local Government and Rural Development Permanent Secretary, Nicholas Phiri, said the funds would be made immediately available to commence the works.
“The US$100m equity is a blend of US$40 million or K920 million (40%) from the CDF and US$60 million or K1 billion, K380 million (60%) equity contribution from the Zambia Consolidated Copper Mines Limited Investment Holdings (ZCCM-IH),” Phiri highlighted.
He said the Ministry of Finance and National Planning, the Ministry of Local Government and Rural Development, and ZCCM-IH would form a special purpose vehicle to drive the initiative.
“The total project cost is approximately US$200 million or K4.6 billion. Additional financing will be sourced from financial institutions and banks,” Phiri said.
He stated that equity contributions from the Ministry would be mobilised from the restructuring of the loan and disaster components of the CDF, with the overall restructuring expected to release about US$35.9 million (approximately K826 million).
Phiri said out of this amount, K670 million would come from the loan component while K156 million would come from the disaster component, leaving a K94 million deficit required to meet the K920-million CDF equity contribution.
He said the K94 million would be financed through community projects.
“In view of this, each constituency is expected to contribute approximately K5.9 million, out of which only about K603 thousand will come from community projects,” he said.
Phiri noted that the restructuring of the CDF had been undertaken in line with the CDF Act No. 1 of 2024 Article 33 (a), (b), (c) and (d), which empowers the Minister to guide the identification, prioritisation, classification and implementation of projects.
He said the restructuring of the 2026 CDF would not disrupt the implementation of projects already identified by communities, ongoing works or other presidential priorities such as the construction of chiefs’ palaces, maternity annexes, and water and sanitation facilities in public places.
“Further, the Ministry wishes to guide Local Authorities to continue the provision of loans under CDF through the repaid amounts.
“Between 2022 and 2025, the Ministry has invested over K1.6 billion into the CDF loan portfolio,” Phiri said.
He stated that by September 2025, about K163,717,887 had been recovered, representing a 9.7 percent recovery rate.
Phiri added that the Ministry, working with stakeholders, would intensify engagements to ensure all CDF loans were recovered so that the facility could revolve and benefit more recipients.
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