In the quest to decentralize economic activities by bringing them closer to the constituencies, Zambia’s Minister of Finance announced a wider allocation of the Constituency Development Fund (CDF) to K25.7 million from a prior K1.6 million. Dr. Situmbeko Musokotwane in his speech however did caution against abuse of the CDF fund and sternly echoed the need for accountability in usage of these funds.
“I repeat, the 2022 budget will increase the constituency development fund (CDF) from K1.6 million to K25.7 million, under the new dawn government,” Dr. Musokotwane said.
Zambia has for many years underfunded the constituencies and as such this has impeded growth and is the reason for uneven distribution of development in the country. A greater CDF allocation entails greater liquidity and economic activity henceforth opportunity in the remotest part of the nation. This will make more businesses attracted to the constituencies as opposed to concentration in already established cities.
It is expected the local authorities will play a greater role in developing constituencies thereby ensuring that all citizens do contribute to the 3.5% (2022) macroeconomic growth target.
The Kwacha Arbitrageur