27/11/2025
GOVERNMENT RELEASES K2.3 BILLION FOR SOLAR ROLLOUT AS CDF IS RESTRUCTURED
The Government has unlocked K2.3 billion (US$100 million) to kick-start a nationwide solar energy programme, following a major restructuring of the Constituency Development Fund (CDF), the Ministry of Local Government and Rural Development has announced.
Permanent Secretary for Technical Services Nicholas Phiri said the financing marks one of the largest single reallocations of CDF resources since the fund was established, describing it as 'a strategic investment in national energy security and long-term revenue generation for Local Authorities.'
He explained that the US$100 million initial investment for the newly created Presidential Constituency Energy Initiative (PCEI) is a combination of US$40 million from the CDF and US$60 million from ZCCM-IH, forming the first tranche of a US$200 million (K4.6 billion) national solar rollout.
"The Ministry has concluded the restructuring of the CDF 2026 in order to release funds needed to translate this policy guidance into tangible project deliverables," Mr. Phiri said.
"An initial equity contribution of 100 million dollars will be immediately made available to commence the works."
According to the Ministry, the restructuring of the loan and disaster components of the CDF will release K826 million (US$35.9 million).
However, a K94 million shortfall remains, prompting each constituency to contribute about K5.9 million, of which approximately K603,000 will come from community projects.
Mr. Phiri stressed that the reallocation has been done in line with the CDF Act No. 1 of 2024 and will not derail existing 2026 community projects or Presidential priorities such as maternity annexes, water and sanitation facilities, and chiefs' palaces.
He also highlighted concerns over low loan recoveries under CDF, noting that although K1.6 billion has been injected into the loan portfolio since 2022, only K163.7 million, a recovery rate of 9.7%, had been repaid by September 2025.
"We will intensify stakeholder engagement to ensure that all CDF loans are recovered so that the facility can revolve and be extended to other recipients," he said.
Mr. Phiri further underscored that the energy investment will generate new income streams for councils, calling it 'a significant milestone in enhancing Local Authority Own Source Revenue, as all the 156 Local Authorities will earn dividends arising from their equity contribution.'
He assured the public that the initiative, managed by the Ministry of Energy with support from the Ministry of Finance and ZCCM-IH, will be executed with strict financial oversight.
"The Presidential Constituency Energy Initiative will be implemented with the highest level of urgency, efficiency, accountability, and technical vigilance," he said.
"This transformative programme remains critical to the financial sustainability of Local Authorities while contributing to national energy security."
