CEEC Urges Zambians to Improve Loan Repayment Culture

......CEEC Empowerment Boosts SMEs, but Poor Loan Repayment Remains a Major Concern

By Samuel Mbewe

Lusaka, Zambia — The Citizens Economic Empowerment Commission (CEEC) has reaffirmed its commitment to promoting inclusive economic participation through enterprise financing, skills development, and value-chain support, even as it raises alarm over the growing challenge of poor loan repayment among beneficiaries.

The commission continues to channel support to historically marginalized groups through initiatives such as preferential procurement, value-chain development, and market access programmes aimed at increasing citizen involvement in national economic growth.

One such beneficiary is Lusaka-based poultry farmer Marvin Kasese, who said prolonged drought has taken a heavy toll on SMEs across the country. He noted that CEEC’s training programmes have played a vital role in equipping small businesses with climate-adaptive strategies to survive harsh environmental conditions. Kasese further appealed to CEEC to consider restructuring loans to help struggling entrepreneurs recover.

In Eastern Province, Koyebless Farms Ltd stands out as a success story. Executive Director Rhoda Banda said the enterprise has grown significantly since receiving CEEC financing. What began as a modest poultry project of 1,000 layers has expanded to nearly 16,000, enabling the company to supply eggs to lodges and retail outlets in Chipata.

Market traders have also benefited through the Marketeer Booster Loan Programme, which has empowered more than 74,000 traders nationwide. Moses Tembo, a second-hand clothes trader from Soweto Market, said the loan transformed his business, enabling him to increase his stock from two to ten bales.

Despite these achievements, CEEC Director General Dr. Muwe Mungule expressed concern over the persistent problem of poor loan repayment. He warned that the trend is undermining lending institutions and threatening the sustainability of empowerment initiatives.

“The poor loan repayment culture is not only killing businesses but also slowing down the growth of enterprises that depend on revolving funds,” Dr. Mungule said.

He attributed the issue partly to borrowers’ limited understanding of loan terms, which has resulted in defaults and delayed payments. Describing the situation as “shameful,” Dr. Mungule criticized individuals who only repay their loans after being pursued by the commission. He said CEEC will intensify loan recovery efforts and introduce punitive measures for persistent defaulters to protect public funds.

CEEC Public Relations and Communications Manager Michelo Mukata revealed that more than 86,600 Zambians have been empowered over the past four years through various programmes. He said financing ranging from K500 to K3 million has helped thousands of entrepreneurs start or expand businesses across different sectors, with youth-led enterprises accounting for 31 percent of all beneficiaries.

Mr. Mukata also highlighted the commission’s targeted response to the 2024 drought, noting that CEEC disbursed over K12 million to four cooperatives in Sikongo District, Western Province, in line with President Hakainde Hichilema’s directive to support affected communities.

To improve sustainability and reduce loan defaults, CEEC has strengthened training programmes aimed at helping beneficiaries manage funds more effectively.

Small and Medium Enterprise Development Minister Elias Mubanga urged CEEC to continue prioritizing young entrepreneurs, saying innovative youth-led ventures hold significant potential for job creation and enhancing self-reliance among Zambia’s young population.

He further revealed that the Citizens Economic Empowerment Commission (CEEC) has disbursed K1.3 billion in empowerment loans to over 83,000 beneficiaries nationwide in the last four years.

Mr. Mubanga said the agriculture sector has been the biggest beneficiary of the empowerment initiative.

He stressed that the Ministry will not entertain individuals who obtain empowerment loans but fail to pay them back, noting that loan recovery is essential to allow more citizens to benefit from the fund. Mr. Mubanga has since encouraged all beneficiaries to repay their loans on time.

As CEEC pushes to scale up enterprise financing and strengthen economic participation, the commission maintains that improved loan repayment will be crucial to sustaining empowerment initiatives and expanding support to more Zambians.