The Government has released K2.3 billion (US$100 million) to kick-start a nationwide solar energy programme under the new Presidential Constituency Energy Initiative (PCEI), marking one of the largest-ever reallocations of Constituency Development Fund (CDF) resources.
Announcing the development, Permanent Secretary for Technical Services in the Ministry of Local Government and Rural Development, Nicholas Phiri, described the investment as “a strategic step toward national energy security and long-term revenue generation for Local Authorities.”
Mr. Phiri explained that the initial US$100 million equity injection combines 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 to release funds needed to translate this policy guidance into tangible project deliverables,” he said. “An initial equity contribution of 100 million dollars will be immediately made available to commence the works.”
The restructuring of the CDF loan and disaster components will free up K826 million (US$35.9 million), though a K94 million funding gap remains. To close it, each constituency will contribute approximately K5.9 million, including about K603,000 from community projects.
Mr. Phiri emphasized that the reallocation aligns with the CDF Act No. 1 of 2024 and will not disrupt already approved 2026 community projects or Presidential priority infrastructure such as maternity annexes, water and sanitation facilities, and chiefs’ palaces.
He also raised concern over poor loan recoveries under CDF, revealing that only K163.7 million a recovery rate of 9.7% had been repaid from the K1.6 billion disbursed since 2022.
“We will intensify stakeholder engagement to ensure all CDF loans are recovered so the facility can revolve and benefit more recipients,” he stated.
The PCEI is expected to create new revenue streams for councils. “This investment is a significant milestone in enhancing Local Authority Own Source Revenue, as all 156 Local Authorities will earn dividends from their equity contribution,” Mr. Phiri said.
He assured the public that the programme, to be implemented by the Ministry of Energy with support from the Ministry of Finance and ZCCM-IH, will be executed with strict financial and technical discipline.
“The Presidential Constituency Energy Initiative will be implemented with the highest level of urgency, efficiency, accountability, and technical vigilance,” he said. “This transformative programme is critical to the financial sustainability of Local Authorities and to national energy security.”
