Speaking during a CDF monitoring tour in Mpika District, the minister made it clear that the loans are not grants or handouts, but revolving funds intended to empower communities and stimulate local economic activity.

“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,” Hon. Sialubalo said.
The Minister expressed concern over reports of delayed or non-repayment by some beneficiaries and warned that continued defaulting could jeopardize the future of the CDF loan scheme in various constituencies.

He urged local authorities, Ward Development Committees, and CDF technical committees to enhance public sensitization efforts and ensure that all loan terms are clearly communicated and understood before disbursement.

“CDF loans must be used for the intended purposes whether it’s farming, small scale businesses, or vocational projects. Misusing or defaulting on these funds undermines the spirit of community development and empowerment,” he added.

The monitoring exercise forms part of a broader government initiative to promote transparency, track impact, and strengthen accountability mechanisms around the CDF implementation process nationwide.

The CDF loan facility is one of the key pillars of Zambia’s decentralization strategy, designed to reduce poverty, promote entrepreneurship, and build self-reliant communities.

Issued by:
Liseli Kanyanga (Ms.)
Principal Public Relations Officer
MINISTRY OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT