Africa-Press – Malawi. By Wezzie Gausi:
Local Government authorities across Malawi are struggling to deliver basic services following delays and shortfalls in Central Government funding during the first quarter of the 2025 to 2026 financial year.
An analysis by the Malawi Local Government Association (Malga) reveals that councils received only 70 percent of their expected first-quarter budget allocations funds has been compounded by inflation, which averaged 29.2 percent in April 2025.
Malga notes that inflation eroded the real value of disbursed funds, with April’s K19.5 billion effectively worth only K13.7 billion in purchasing power.
Despite a constitutional requirement under Section 150 for the government to support local authorities through intergovernmental fiscal transfers, the report notes that the current allocation of 5 percent of net national revenue is insufficient.
Although Malawi’s revised 2024 Decentralisation Policy mandates this 5 percent threshold, actual transfers in the current fiscal year reached only 4 percent, approximately K180 billion instead of the required K220 billion.
Malga says this level of support is inadequate when compared to regional peers. For instance, Kenya allocates 15 percent of its national revenue to local government entities, Zambia 7.5 percent and Rwanda 10 percent.
“The notion that local authorities will drive development is a fallacy if they continue to receive just 2 percent of the national budget,” the report states.
Willy KambwandiraCentre for Social Accountability and Transparency (Csat) Executive Director Willy Kambwandira described the situation as troubling.
He said this is not just an administrative oversight.
“In the absence of a proper explanation, the situation signals a deep financial distress at the national level,” Kambwandira said.
He further noted it is unfortunate that while local council services have completely collapsed, political leaders continued to live extravagantly and globetrot.
“The funding gap undermines the principles of decentralisation as enshrined in our Constitution. The persistent underfunding does not only hamper service delivery but also erodes public trust in Local Government structures,” Kambwandira said.
The report concludes by urging central government and the National Local Government Finance Committee to prioritise local development funding.
It also calls on councils to strengthen efforts to generate local revenue, particularly through property rates, which are now permissible even in rural areas.
Of late, Malga Executive Director Hadrod Mkandawire has been calling for timely disbursement of funds to Local Government authorities.
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