Transparency International Zambia asks how government will keep the K40 million CDF going as Treasury pulls back

GOVERNANCE

By ZPP Newsroom

Source: News Diggers

Transparency International Zambia asks how government will keep the K40 million CDF going as Treasury pulls back
Transparency International Zambia (TI-Z) has asked government to explain how it will sustain the Constituency Development Fund (CDF) across all constituencies as demand for economic empowerment grows. Acting Executive Director Raymond Mutale said, in response to a press query on Monday, that the decision raises questions about government's long-term planning and how it prioritises resources. The call follows a statement by Finance and National Planning Minister Dr Situmbeko Musokotwane that Treasury will not release money to the Food Reserve Agency (FRA) in the next farming season because the agency bought more maize this season than was budgeted. He said one way government is dealing with the overspend is by setting next year's CDF allocation below the amount first budgeted, and that Treasury will tell councils the revised figures so they do not over-procure or build up arrears. The exact cut will be confirmed when the 2027 Budget is tabled. Northern Province alone has bought 234,000 tonnes of maize this marketing season. The fund has grown fast. It rose from K1.6 million per constituency in 2021 to K40 million in 2026, a national envelope of about K6.245 billion, and President Hichilema cited the increase when he opened the 14th National Assembly. State House Chief Communications Specialist Clayson Hamasaka has since said the CDF is still K40 million and that government has only adjusted disbursements to constituency needs. He said the FRA will still buy for the strategic reserve, that it "was never created as a crop marketing agency", and that a private-sector-driven body will be set up for crop marketing. The IMF team that visited Lusaka in September and October also pointed to FRA spending far above what was budgeted. On 7 October, Permanent Secretary Nicholas Phiri said that in the first year of the enlarged CDF, less than 40 percent of the money allocated was used. ## Why it matters Most Zambians do not borrow from banks, so the CDF is one of the few sour