• The low number of CDF loan applications is due to failure to develop viable and well projected business proposals in line with the CDF guidelines.
• This comes in the wake of poor financial literacy and inadequate sensitization to the people.
• People in the District must take advantage of the expanded CDF program to grow their businesses using the CDF loan as capital investment.
Chipangali District Council says the low number of cooperatives and individuals applying to access loans under the Expanded Constituency Development Fund in the area may affect smooth implementation of CDF budget circle in the District as the 2022 financial year is soon coming to an end.
Council Chairperson Maxson Nkhoma attributed the low number of CDF loan applications to failure by some cooperatives and individuals to develop viable and well projected business proposals in line with the CDF guidelines.
Mr. Nkhoma told Money FM News that this is as a result of poor financial literacy and inadequate sensitization to the people on how to fill in the loan forms and develop a viable business plan which will catch the attention of those reviewing the applications.
He urged people in the District to take advantage of the expanded CDF program to grow their businesses using the CDF loan as capital investment.
“If well managed, the CDF loan program is an equaliser even for vulnerable to access business capital and a serious game changer to small and medium scale businesses to grow and create wealth in the District,” Mr. Nkhoma said.
Mr. Nkhoma urged Council Management to extend the closing date of receiving loan applications from Ward Development Committees across all the eight Wards so that no one is left behind.
“I also wish to appeal to financial institutions to come on board and partner with the local authority on raising financial literacy education to our people in the District so that our people are able to write justifiable and well-articulated business proposals in order to access finance,” he added.