P. O. BOX KZ065, Kazungula
info.Kazungula@grz.gov.zm
kazungulatowncouncil@gmail.com

CDF FAQs

Most CDF frequently asked questions and answers

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The CDF is a national development fund established to channel resources to the local level. It has been described as “a major tool to take resources closer to the people”. The CDF was first established in 1995 to support micro-community projects. Under the 2018 CDF Act, “the Act provides for the management, disbursement, utilisation and accountability of the CDF”, ensuring that funds are utilised as intended. For example, in Kazungula District, the CDF funds local community projects (such as boreholes or small bridges) so that residents directly benefit from national resources.

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The CDF covers three (3) specific areas: Community Projects; Youth, Women and Community Empowerment; and Secondary Boarding School and Skills Development Bursaries. These components correspond to the priorities of local development. For instance, Kazungula’s CDF allocation might include funds for community infrastructure (Community Projects), grants and loans for local youth/women entrepreneurs (Empowerment), and school or skills bursaries for students.

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The CDF covers three (3) specific areas: Community Projects; Youth, Women and Community Empowerment; and Secondary Boarding School and Skills Development Bursaries. These components correspond to the priorities of local development. For instance, Kazungula’s CDF allocation might include funds for community infrastructure (Community Projects), grants and loans for local youth/women entrepreneurs (Empowerment), and school or skills bursaries for students.

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By law, 95% of the constituency allocation is split among the three components (5% is reserved for administration). Specifically:

  • Community Projects – 60% of the Fund (including a 5% disaster contingency).
  • Youth & Women Empowerment – 20% of the Fund (40% of this 20% for grants and 60% for soft loans).
  • Secondary Boarding/Skills Bursaries – 20% of the Fund.

 

Example, K36M in Kazungula, roughly K21.6M (60%) would be for community projects, K7.2M (20%) for empowerment (grants/loans), and K7.2M (20%) for bursaries, subject to the guidelines.

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The guidelines give numerous examples. Fundable community projects include:

  • Water & Sanitation: construction/rehabilitation of wells, dams, boreholes, piped water systems, flush toilets, drainage, etc.
  • Roads & Construction: building or repairing feeder/community roads, footbridges, culverts, causeways, canals, refuse bays, etc.
  • Agriculture: small-scale irrigation systems, community storage sheds, dip tanks, etc.
  • Markets & Security: construction/rehabilitation of markets, bus shelters, community police posts, etc.
  • Education & Health: building/rehabilitating schools, libraries, labs, desks; health posts, maternity wings; community libraries; nutrition or literacy programs; etc.
  • Sports & Recreation: community halls, sports centres (table tennis, netball), playgrounds and playfields, etc.
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The CDFC is a multi‐stakeholder committee appointed by the Minister. It shall consist of the following part-time members:

  • Two community representatives nominated by the MP from the constituency.
  • Three Councillors in the constituency (two elected by councillors, one nominated by the MP).
  • Chief representatives: one Chief if the area has one, or two Chiefs if more, nominated by the local chiefs.
  • Director of Planning’s representative from Kazungula Town Council, where the constituency is located.
  • Director of Works/Engineering’s representative from Kazungula Town Council.
  • Civil Society Organisation (CSO) representative operating in the constituency, nominated by the MP.
  • Religious Organisation representative in the constituency, nominated by the MP.
  • The Member of Parliament (MP) of the constituency.
  • Director of Finance’s representative from the Kazungula Town Council.
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The CDFC has a statutory role in planning and oversight. Its key functions include:

  • Ensuring the compilation of proper records, returns and reports from the constituency.
  • Receiving and discussing annual reports and returns from the constituency.
  • Receiving project lists from the Ward Development Committees.
  • Deliberating on project proposals from the Wards.
  • Developing and submitting a consolidated project list to the Local Authority for onward transmission to the Minister.

 

Thus, Kazungula’s CDFC reviews all ward proposals, compiles its final project list, and ensures proper documentation and reporting, as mandated.

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All CDF projects, empowerment grants/loans and bursaries must be endorsed by the CDFC and then approved by the Minister.

Specifically, “The Minister shall approve projects, empowerment and bursaries endorsed by the Constituency Development Fund Committee.”.

The CDFC must submit its proposed applications with estimated costs to the Minister by the end of March each year. In an election year, proposals should be ready by the end of the fourth quarter before polls, and if elections occur, approvals take place in the first quarter of the following year.

For example, Kazungula’s CDFC will prepare its project and empowerment proposals by March for Ministerial approval, following exactly these timelines.

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CDF funds in Zambia are disbursed by the Ministry of Local Government and Rural Development directly to the accounts of Local Authorities (District Councils) based on approved annual allocations for each constituency. Once received, the funds are managed under strict financial regulations and guidelines.

Project proposals are first identified and prioritised at the community level through Ward Development Committees (WDCs), then appraised and recommended by the Constituency Development Fund Committee (CDFC). Upon approval by the council, funds are allocated to specific projects, and procurement processes are initiated following public procurement laws.

Disbursement to contractors or service providers is done in phases, based on milestones or completion stages, and is closely monitored to ensure transparency, accountability, and timely implementation of projects.

Disbursement is handled by the Ministry of Finance in coordination with the Local Government.

By the guidelines: “The Ministry responsible for Finance shall transfer the funds from the Treasury Single Account to the Constituency Account maintained and managed by the Local Authority”.

In practice, in the first quarter of each year, a quarter of the total national CDF allocation is transferred to each constituency’s bank account. Subsequent quarterly disbursements are conditional on expenditure returns: each constituency must submit an expenditure return (a report of funds received and spent) for the previous quarter, and only then will the next disbursement be released.

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The Fund may only be used for approved projects and CDF administrative purposes. Allowable expenditures include: all costs related to CDF project implementation (procurement, technical appraisal, design work, etc.); and travel subsistence or allowances for WDC/CDFC members and councillors on CDF duty when travelling (>50 km).

Disallowed expenditures include any non-project or personal benefit spending. Examples of disallowed items are: funeral expenses (unless disaster-related with DMMU approval); personal fuel costs; payments to communities for their labour contributions; and expenses for religious, political or traditional events.

In short, Kazungula’s CDF funds can pay for constructing a community school or drilling a borehole (allowable). Still, they cannot pay for a private funeral or fuel for personal vehicles (disallowed).