‘CDF LOANS MUST HAVE PAYMENT DEADLINES’

THE Centre for Trade Policy and Development (CTPD) has called for introduction of rigorous measures that will ensure beneficiaries of the Constituency Development Fund (CDF) loans pay back within a stipulated period.

Repayment of these funds is crucial to ensure continual access and empowerment for more Zambians in their respective constituencies.

This is according to the CTPD Executive Director, Mr Isaac Mwaipopo, in a statement issued yesterday.

Mr Mwaipopo expressed confidence that putting in place such measures would ensure sustainability of the initiative.

“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,” Mr Mwaipopo said.

While CTPD appreciated Government’s effort to improve access to affordable finance for Individual, group, small and medium enterprises through CDF, Mr Mwaipopo said it remained alive to the fact that these were public funds.

Ultimately, according to Mr Mwaipopo, loan beneficiaries should repay these funds for constituencies to establish revolving funds that could benefit other members of the community.

Mr Mwaipopo also indicated that CTPD had called on Government to provide an update on the performance of loans and grants being offered to beneficiaries under the CDF youth, women and community empowerment category.

“CTPD acknowledges that the loans and grants provided through CDF are intended to function as a revolving fund,” he said.