Chadiza Town Council has approved the disbursement of K3,249,700 in empowerment loans to 25 selected beneficiaries under the 2025 Constituency Development Fund (CDF) scheme. The loans, which range from K100,000 to K200,000 per beneficiary, are aimed at supporting youth entrepreneurs, women-owned businesses, and community cooperatives operating in agribusiness, manufacturing, and service sectors.
Beneficiaries are engaged in various economic activities including crop and livestock farming, general trading, food services, agro-processing, tailoring, transport, and small-scale construction. The loans are intended to boost local productivity and promote self-sustaining enterprises across Chadiza.
The Council emphasizes that these funds must be used strictly for the approved business purposes outlined in each application. Council Secretary Mwansa Mumba stated that this is a revolving fund designed to create sustainable growth and that repayment is mandatory, with legal measures in place for those who default.
A fixed five-percent interest rate applies to all loans, including a three-month grace period. To ensure proper use of funds, the Council has implemented monitoring measures that include regular progress reporting and unannounced business inspections.
In addition, the Council will conduct comprehensive financial literacy training for all beneficiaries. This mandatory program is intended to equip entrepreneurs with essential business management skills to ensure that they are adequately prepared to utilize the loans effectively and repay them within the stipulated period.
The Council reminds all applicants that these are loans and not grants, and therefore urges all beneficiaries to maintain proper financial records. Payments will be made directly to verified business accounts, and a strict verification process has been put in place to prevent fraud.