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Minister of Local Government and Rural Development, Gift Sialubalo, has issued a reminder to beneficiaries of Constituency Development Fund (CDF) empowerment loans, stressing that the funds must be repaid in full to ensure the sustainability of the initiative.
According to a statement issued in Mpika on Monday by Ministry Principal Public Relations Officer, Liseli Kanyanga, Sialubalo emphasized that CDF loans were not grants or handouts, but revolving funds designed to empower communities and stimulate local economic growth.
Speaking during a monitoring tour of CDF projects in Mpika District, the Minister warned that failure to repay loans denies others the opportunity to benefit.
“A loan is a loan and must be paid back. When you don’t pay, you are blocking someone else from benefiting. This fund is meant to uplift many lives, and it can only do that if it is respected and treated with accountability,” Sialubalo said.
He expressed concern over increasing reports of delayed or non-repayment by some beneficiaries and warned that persistent defaulting could threaten the continuity of the loan scheme across constituencies.
Sialubalo called on local authorities, Ward Development Committees, and CDF technical committees to intensify sensitization efforts and ensure that loan terms and obligations are fully understood before funds are disbursed.
He added that CDF loans must be used strictly for their intended purposes—whether in agriculture, small-scale businesses, or vocational initiatives—and warned that misusing or defaulting on funds undermines the objectives of community empowerment.
Sialubalo said the monitoring exercise formed part of a broader government effort to promote transparency, measure impact, and enhance accountability mechanisms within the CDF framework.
He further described the CDF loan facility as a cornerstone of Zambia’s decentralization strategy, aimed at reducing poverty, fostering entrepreneurship, and building resilient, self-reliant communities.
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