By Cecilia Chiluba
The introduction of a targeted loan product by the Citizens Economic Empowerment Commission (CEEC) for Higher Education Institutions (HEIs) marks a significant policy shift aimed at strengthening Zambia’s education financing framework.
The loan product was conceptualized following the inaugural Higher Education Indaba held in Livingstone from October 8 to 10, 2025, where stakeholders identified infrastructure gaps as a key constraint to sector growth. The Indaba was organized by the Higher Education Authority (HEA).
This facility is designed to support institutions seeking to undertake strategic investment projects in 2026, including the development of campus infrastructure, laboratories, innovation centres, student accommodation, renewable energy systems, ICT facilities, agro-industrial units and student entrepreneurship hubs.
The product offers affordable access to finance, tailored to the unique needs of HEIs. It reflects a growing recognition of higher education as both a public good and a viable investment frontier. It carries a 12 percent interest rate, with repayment options structured on a monthly or quarterly basis over a tenure of 60 months, and a three-month grace period.
HEA Director General Professor Kazhila Chinsembu, said the facility is expected to enhance infrastructure development and improve the quality of higher education in Zambia.
Speaking in an interview with Money News, Prof. Chinsembu, stated that the financing initiative targets public and private Higher Education Institutions, enabling them to access capital for both physical and digital infrastructure upgrades.
He noted that HEIs—particularly in the private sector—face significant funding challenges, limiting their capacity to expand facilities such as lecture rooms, laboratories and student accommodation.
Prof. Chinsembu explained that the product will support investments in modern classrooms, student hostels and digital systems, which are critical to improving the learning environment.
“Institutions of higher learning have funding problems especially our public institutions as well as the the private institutions, so we brought banks and other financing agencies including the CEEC.”
“CEEC then developed a new funding window for Higher Education Institutions which they are calling a higher education product. So this will help the the higher education institutions to access capital that can help improve both the physical infrastructure and the digital infrastructure,” he said.
According to the Director General, the initiative reflects collaboration between government, financial institutions and development agencies aimed at strengthening the higher education ecosystem.
While there is no fixed number of beneficiaries, all eligible private Higher Education Institutions are expected to take advantage of the financing window to upgrade and expand their infrastructure.
Prof. Chinsembu expressed optimism that increased access to financing will enhance education quality, boost institutional capacity and contribute to skills development aligned with Zambia’s economic growth objectives.
“We have a lot of HEIs under the private sector umbrella, and we hope that all of them can be eligible to access this loan product. We do not yet have the numbers, but we hope that our private Higher Education Institutions will utilize this window to secure funding for expansion of infrastructure,” he added.
However, as of April 2026, CEEC had received a limited number of applications under the Higher Education loan product, a move attributed the low application rate to the highly regulated nature of the sector as well as the requirement for multiple statutory documents and licences.
In response to a press query from Money News, CEEC Public Relations and Communications Manager Michelo Mukata, reaffirmed the Commission’s commitment to enhancing public awareness.
“The Commission will intensify sensitization efforts to ensure that more citizens are informed and better positioned to participate in future calls for applications,” Mr. Mukata stated.
He explained that the total funding envelope for the HEI Loan Product is determined by the number of viable applications submitted. “The more applications to support, the more resources allocated, & vice-versa. This is the approach across CEEC loan products,” he said.
Mr. Mukata noted that while the Commission has previously supported institutions in the education sector, this is the first time it has introduced a dedicated product tailored specifically for higher education institutions.
He assured that the Commission will uphold transparency and fairness in the loan approval process through a structured, multi-layered evaluation system aimed at promoting accountability and equal opportunity.
“Key measures include publicly advertised calls for applications with clear eligibility criteria and guidelines, as well as standardized application forms and assessment tools to ensure consistency in evaluation,” he added.
Mr. stated that independent evaluation panels comprising trained technical officers have been constituted to assess applications based on predefined scoring criteria, with all evaluators required to declare any conflicts of interest.
The CEEC maintains comprehensive documentation and audit trails throughout the review process to facilitate both internal and external oversight.
By extending tailored financial support to the education sector, the initiative aligns with broader national development priorities focused on human capital development and skills advancement.
However, the effectiveness of the facility will depend on key factors such as accessibility, affordability, and prudent utilization of funds.
Ensuring that institutions—particularly smaller and emerging ones—can meet eligibility requirements remains essential to achieving inclusive impact. Additionally, robust monitoring and evaluation mechanisms will be required to track outcomes and ensure that financed projects contribute meaningfully to sector growth.
