Let’s embrace culture of repaying loans

MINISTER of Finance and National Planning Situmbeko Musokotwane has reminded Zambians of a very important truth: loans and grants given by Government are not free gifts. They are meant to help people start businesses or grow their incomes, and later be repaid so that others can also benefit.
When citizens fail to pay back, they block opportunities for others. They derail the train of development set in motion by the Government for the benefit of all Zambians.
For years, Government has provided affordable loans through institutions such as the Citizens Economic Empowerment Commission (CEEC) and the Ministry of Community Development and Social Services.
These loans are designed to give ordinary people a chance to grow their businesses and improve their lives. Yet, many beneficiaries treat them casually, as if repayment is optional. This attitude is harmful.
It weakens the system and discourages lenders.
The minister’s warning should be taken seriously. Living beyond our means—spending more than we earn, borrowing without planning, and failing to repay—creates a cycle of poverty. It keeps families trapped in hand-to-mouth living, where every Kwacha earned is spent immediately, leaving nothing for tomorrow. If we want to break this cycle, we must change our mindset.
The truth is simple: no country can grow if its people do not learn to save and invest. Saving is not just for the rich. Even small amounts put aside regularly can make a big difference over time. A family that saves a little each month can later invest in farming inputs, a small shop, or education for their children.
These investments create future income and stability.Investing is equally important.
Money should not only be used for consumption—buying food, clothes, or entertainment. It should also be directed into activities that generate more money. For example, instead of spending all earnings on luxuries, one can buy tools for a business, livestock for farming, or equipment for tailoring. These investments grow income and reduce dependence on loans or handouts.
Dr Musokotwane pointed out that Zambia’s economy is showing positive signs. Inflation has gone down, the Kwacha has stabilised, and sectors such as mining, energy and manufacturing are expanding.
This progress is the result of tough decisions—like cutting fuel subsidies and restructuring debt—that were made to stabilise the economy.
But national progress will only be meaningful if households also practise discipline.
Just as Government avoids overspending, families too must avoid unnecessary debt. Just as Government invests in key sectors, families must invest in education, farming and small businesses. Economic growth is not only about big industries; it is also about ordinary citizens managing their money wisely.
Too many Zambians live hand-to-mouth, spending everything they earn, with no savings or investments. When an emergency comes – illness, school fees, or loss of income – they have nothing to fall back on. This forces them into debt, often at high interest rates, which worsens their situation.
Living hand-to-mouth also prevents people from planning for the future. Without savings, it is impossible to invest in children’s education, housing, or retirement. This creates a cycle where poverty is passed from one generation to the next. Breaking this cycle requires delaying gratification.
When someone borrows from CEEC or another institution, they are using public money. That money belongs to all Zambians.
Failing to repay is not just a personal issue – it is unfair to the nation. It denies others the chance to benefit and weakens trust in empowerment programmes.
If citizens repay faithfully, more people can access affordable loans.
This creates a chain of growth: one person’s repayment funds another person’s opportunity. In this way, communities grow together, and the nation moves forward.