Indo-Zambia Bank launches CDF product
INDO-ZAMBIA Bank (IZB) has unveiled an innovative product designed to improve uptake of the Constituency Development Fund (CDF).
Government increased CDF in the 2022 national budget from K1. 6 million to K25. 7 million per constituency to make service delivery more responsive to people’s needs and stimulate economic growth at grassroots level.
It has also proposed to increase CDF to K28. 3 million per constituency in the 2023 national budget.
Noting some of the challenges faced in the uptake of CDF, the IZB has introduced a multiplier financial service dedicated to building the capacity of small and medium businesses in rural areas. This is aimed at helping them deliver goods and services timely while creating a value chain in the areas they operate from.
President Hakainde Hichilema and his entourage learnt during their tour of the IZB pavilion at Kasima Industrial Park in Mongu on Monday that the procurement process of materials will be done locally and that this will reduce costs in terms of transport and time.
President Hichilema was in Mongu to open the Western Province Tourism, Trade and Investment expo.
Mr Hichilema, who was accompanied by the provincial minister, Mr Kapelwa Mbangweta, was welcomed to the IZB pavilion by IZB board chairperson Michael Gondwe, IZB managing director Kowdichar Shashidhar and IZB general manager Godwin Ngoma.
Mr Shashidhar said the bank intends to extend the CDF Multiplier to all constituencies in the province which will have the benefit of increasing the capacity of micro, small and medium enterprises (MSMEs) to execute and deliver development projects as well as multiply the benefits of CDF in the local community.
And IZB Credit Analyst Caleb Bambala informed the presidential delegation that the Indo - CDF multiplier will also build capacity of the local people and strengthen the local small and medium enterprises (SME) value chain in the rural areas to stimulate socio-economic activities. “A supplier who might have the capability but lack funds to deliver on the project will be empowered with capital so that they deliver to the local people,” Mr Bambala said.
He said IZB is proud to have brought the CDF multiplier product on the market because it is contributing to enhancement of the uptake of CDF.
Citing prospects of an SME of Sinjembela Constituency in Shangombo who may have an opportunity to supply 500 desks, Mr Bambala said IZB would support such an entrepreneur throughout the journey to ensure timely delivery of the products.
He said by ensuring that the supplier fulfills the deal, IZB would have contributed to the quest for quality education by ensuring every child in the province has a desk to sit on.
This, he said would help attain President Hichilema’s desire to ensure that every pupil has a desk by December 2023.
“Secondly, we are creating a value chain not only with money but skill development and financial literacy for the local people,” he said
IZB is the Diamond sponsor of the Western Province expo whose theme is “Rapid Economic Transformation in Western Province Through Home Grown Entrepreneurship, Value Addition and Trade.”