Distributing CDF equally violates equity principles – Expert

By Jane Chanda

Public finance and governance expert Richard Kampamba says Zambia’s Constituency Development Fund (CDF) allocation model requires urgent reform to address socio-economic and geographic inequalities.

Kampamba noted that the current equal allocation of K30.6 million to each constituency, regardless of population size or development needs, violated key equity principles in public resource allocation.

In a statement shared with Daily Revelation yesterday, Kampamba stated that the CDF’s “one-size-fits-all” approach neglected significant disparities in development levels across the country.

He cited an example of a constituency in Lusaka with better infrastructure and services receiving the same funding as a constituency in Shang’ombo struggling with basic needs.

He proposed adopting a needs-based or weighted CDF allocation formula, considering factors such as poverty levels, population size, infrastructure deficits and remoteness.

The public finance expert also highlighted that the approach would ensure constituencies received funds proportionate to their socio-economic needs.

“Allowing for more targeted and effective allocation of resources to address the unique challenges faced by each constituency, and ultimately promoting equitable development and growth,” Kampamba stated.

He added that Zambia could draw lessons from Kenya and Tanzania, countries which incorporated equity and redistribution factors into their CDF legislation.

Kampampa pointed out that Kenya allocated 25 percent of its fund to the poorest areas, while Tanzania considered geographic size, population, and poverty indices.

He stated that the current model led to inefficiencies, with some constituencies struggling to utilise funds effectively and further suggested rewarding constituencies demonstrating good governance and accountability practices.

Kampamba recommended periodic reviews of socio-economic indicators to ensure dynamic adjustments, stating that a guaranteed minimal allocation should be ensured for every constituency.

“Equity is the soul of inclusive development.” He stated.

Kampampa added that adopting a needs-based CDF allocation would promote balanced development, address inequalities and enhance the program’s effectiveness.”

He stated that a needs-based CDF allocation would ensure that no constituency was left behind, aligning with Nelson Mandela’s wisdom that ‘a nation should not be judged by how it treated its highest citizens, but its lowest ones.’

Minister of Finance and National Planning Dr. Situmbeko Musokotwane announced the government’s commitment to enhancing CDF utilisation during the presentation of the 2025 national budget in parliament, in October this year.

He said Zambia aimed to achieve a minimum of 98 percent CDF utilisation by 2025, building on recent significant increases in CDF allocation.

Dr. Musokotwane added that the CDF allocation saw substantial growth, with a 16-fold increase in 2021, unlocking K27 million for all 156 constituencies, marking the first significant financial allocation for community-determined spending since 1995.

The minister said further increases were made in the 2022 and 2023 budgets, which provided more resources for community-driven projects.

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