Watchdog Seeks CDF Oversight

ZIPAR Call for stronger accountability in community development funds.

By Francis Maingaila

Lusaka, Zambia24  - (24 September 2025) - The Zambia Institute for Policy Analysis and Research (ZIPAR) has urged the government to base the 2026 National Budget on fiscal restraint, stronger domestic revenue mobilisation, and tighter oversight of the Constituency Development Fund (CDF).

ZIPAR Executive Director, Zali Bryson Chikuba, cautioned that Zambia will face heavier debt obligations in 2026 as the three-year moratorium on official repayments expires. 

He estimated that debt servicing will absorb 7.7 percent of GDP and warned that election-related expenditure could almost double, rising from K651.2 million to K1.1 billion.

“With the debt moratorium ending, domestic revenues must increase to above 22 percent of GDP through measures such as rationalising tax incentives, modernising VAT and excise systems, and formalising the informal sector,” Chikuba said.

He stressed that maintaining budget credibility depends on firm consolidation measures, including multi-year expenditure controls in IFMIS, timely publication of budget execution reports, and comprehensive fiscal risk assessments covering State-Owned Enterprises and Public-Private Partnerships.

Economic growth is projected at 6–6.5 percent in 2026, supported by favourable rainfall, recovery in copper output, and structural reforms. 

Inflation is forecast to remain within 7–9 percent, while the Kwacha is expected to remain stable under a flexible exchange rate. Chikuba, however, flagged global financial tightening, copper price swings, and domestic supply challenges as potential threats.

ZIPAR recommended targeted investments in mining exploration, value addition, and the formalisation of artisanal and small-scale operations, alongside boosting tourism in Kasaba Bay and Liuwa National Park. 

In agriculture, it proposed a gradual reduction in reliance on the Farmer Input Support Programme (FISP), with resources redirected to irrigation, mechanisation, and extension services. 

The institute also pointed to livestock and fisheries programmes—such as breeding centres and aquaculture expansion—as vital for food security and income generation.

The manufacturing sector, ZIPAR suggested, should concentrate on agro-processing, the development of Multi-Facility Economic Zones, and SME support, while sustaining fertiliser production and encouraging renewable energy solutions. 

On transport, it underscored the rehabilitation of TAZARA and Zambia Railways, upgrades to rural feeder roads, and completion of new airports in Choma, Chinsali, and Nakonde.

 Energy sufficiency, it added, will depend on reforms such as the open access initiative, the Zambia–Tanzania–Kenya interconnector, and reducing transmission losses.

On social sectors, ZIPAR called for increased funding to implement the revised curriculum, expand teacher recruitment, and support digital learning. 

It also urged expanded health allocations to strengthen infrastructure, hire medical professionals, and establish specialist hospitals. 

Environmental sustainability, Chikuba said, should be advanced through green bonds, carbon trading, and stricter compliance with environmental standards.

Turning to the CDF, ZIPAR projected allocations will increase from K5.6 billion in 2026 to K6.4 billion in 2028. 

However, it warned that without strong oversight, the fund may fail to deliver meaningful results at community level.

“Overcoming poverty is not a gesture of charity; it is an act of justice,” Chikuba said, urging government to uphold fiscal transparency, discipline, and continuity of programmes to strengthen public confidence.

The 2026 National Budget will be presented on Friday, 26 September 2025, in alignment with Zambia’s medium-term development objectives and commitments under the IMF Extended Credit Facility.