The Ministry of Finance, Economic Planning and Decentralisation in Malawi has acknowledged that local councils face significant challenges in implementing devolved development programmes due to inadequate financial and administrative capacity. This has raised concerns about their ability to deliver essential public services effectively.
According to Kate Langwe, director responsible for poverty reduction and social protection at the Ministry of Finance, local councils remain heavily dependent on central government funding despite assuming greater responsibilities under decentralisation reforms. This dependency has been a longstanding issue, affecting the councils' ability to operate independently and efficiently.
Langwe noted that most councils have the potential to generate additional revenue locally but lack the capacity to exploit available opportunities. The transfer of responsibilities to local councils has not been adequately matched with financial resources, personnel, and decision-making authority, further straining their capacity to deliver services.
The concerns about local council financing were echoed by Hadrod Zeu Mkandawire, executive director of the Malawi Local Government Association (Malga). In May, he complained that local authorities had gone two months without funding for Other Recurrent Transactions and Constituency Development Fund, which paralysed service delivery. This delay had operational implications, affecting the payment of public utilities, including fuel for hospitals, water, and electricity bills.
A United Nations (UN) Common Country Analysis published in 2025 estimated a 78 percent financing gap for devolved social sector and agricultural functions. The assessment indicated that district councils received only about a fifth to a quarter of the funding required to fulfil their service delivery obligations, with about 80 percent of their budgets financed through central government transfers.
Chisomo Tsonga, UN Children’s Fund public financial management specialist and technical lead, emphasised the need for equitable resource allocation, reflecting differences in poverty, vulnerability, and development needs across districts. She also highlighted weaknesses in budget execution, calling for improved cash management and timely disbursement of resources to strengthen implementation.
The United Nations Development Programme presentation at the Economics Association of Malawi (Ecama) 2026 Annual Economic Conference questioned whether Malawi’s public institutions have sufficient financing, capacity, and accountability mechanisms to translate development policies into measurable results. The presentation emphasised the need to improve the utilisation of available resources rather than concentrating solely on mobilising additional financing.
Key points
- Local councils in Malawi face significant funding and capacity challenges, affecting their ability to deliver essential public services.
- The Ministry of Finance has identified weaknesses in financial management and coordination as obstacles to effective decentralisation.
- There is a need for equitable resource allocation and improved budget execution to strengthen implementation of devolved development programmes.
