The NGO sector in Malawi has shown significant growth, generating K1.30 trillion in income in 2026, up from K1.02 trillion in 2025. This represents a substantial injection into the economy, with foreign currency accounting for K994.6 billion or 76.7 percent of the total income. The sector's growing role in Malawi's economy is evident, with the top 20 NGOs receiving half of the total income.
However, the report also highlights some challenges facing the sector. A significant 79 percent of NGOs depend on a single donor, exposing them to risks when funding shifts. Furthermore, the sector has experienced a sharp drop in jobs, with 22,440 paid employees in 2026 compared to 28,680 in 2025. Despite this, salaries totaled K337.2 billion, including K72.8 billion in Pay As You Earn (Paye) tax remitted to the government.
Governance records in the sector also remain weak, with 81 percent of NGOs not showing whether their boards are within mandate. Additionally, NGOs with lapsed mandates spent 116 percent of their income compared to 101 percent for those without end dates. These findings were presented during the launch of the report in Lilongwe, where stakeholders emphasized the need for NGOs to reflect on their strengths and weaknesses.
NGO Regulatory Authority (Ngora) Chief Executive Officer Voice Mhone commended the income increase, describing it as a "massive injection into the economy, almost rivaling the national budget." Minister of Gender, Children, Disability and Social Welfare Mary Navicha also welcomed the findings, highlighting the sector's role in creating opportunities for women and girls.
Navicha acknowledged the drop in employment but stressed that the government would continue working with NGOs to strengthen systems and ensure transparent use of funds. She also pointed out grey areas in NGO governance, particularly the failure by many to disclose names of board members. The government will work to address these issues and ensure that funds are used for their intended purpose.
Ngora Board Chairperson Bertha Phiri noted that while challenges remain, compliance levels of about 70 percent show progress. She also highlighted the sector's potential for economic growth, with the NGO sector overtaking tobacco in forex earnings. Phiri urged local NGOs to embrace compliance and social enterprise models to sustain themselves beyond donor funding.
The NGO Sector Report was introduced by Ngora in 2021 to consolidate audited financial statements, technical reports, and compliance records from NGOs into one annual publication. The report provides valuable insights into the sector's performance and its contribution to Malawi's economy. With the sector's growing importance, stakeholders are calling for increased support and collaboration to ensure its continued growth and impact.
Key points
- The NGO sector in Malawi generated K1.3 trillion in income in 2026, a significant increase from K1.02 trillion in 2025.
- The sector's governance records remain weak, with 81 percent of NGOs not showing whether their boards are within mandate.
- The sector has experienced a sharp drop in jobs, with 22,440 paid employees in 2026 compared to 28,680 in 2025.
