The Centre for Trade Policy and Development (CTPD) has called on Government to provide an update on the performance of loans and grants being offered to beneficiaries under the Constituency Development Fund (CDF) Youth, Women and Community Empowerment category.
In a statement this morning, CTPD Executive Director Isaac Mwaipopo acknowledged that the loans and grants provided through CDF are intended to function as a revolving fund.
He said the repayment of these funds is therefore crucial to ensure continual access and empowerment for more Zambians in their respective constituencies.
Mr. Mwaipopo said CTPD has observed that the government has continued to allocate funds from the treasury to constituency CDF accounts, with the public remaining unaware of whether constituencies are maintaining balances in their revolving fund accounts due to repayments of CDF loans by beneficiaries.
He said while CTPD appreciates government’s effort to improve access to affordable finance for Individual, Group, Small and Medium Enterprises through CDF, we remain alive to the fact that these are public funds.
“Ultimately, loan beneficiaries should repay these funds in order for constituencies to establish revolving funds that can benefit other members of the community.”
“Moreover, it is important for Government to put in place stringent measures that will ensure that beneficiaries of these loans pay back within a stipulated period if this initiative is to be sustainable.” Mr. Mwaipopo said
And Mr. Mwaipopo said CTPD notes that putting in place such measures will prevent a scenario where beneficiaries fail to repay the loans as has been observed in previous public empowerment schemes. In these cases, the failure of loan beneficiaries to repay into the revolving funds hindered others from accessing loans resulting in short-lived and ineffective empowerment schemes.
