Local councils across Malawi are on the brink of collapse, crippled by a shocking lack of funding since November 2024. Already battling severe operational and administrative challenges, these councils have now been completely abandoned by the central government, leaving essential public services in chaos.
According to an analysis by the Malawi Local Government Association (MALGA), not a single kwacha of the MK13.8 billion for November or the MK7.8 billion for December was transferred to local authorities. Even as January came to an end, councils had yet to receive any funding, turning an already dire situation into a full-blown governance crisis.
The councils have been unable to access funds through key National Government (NG) financing windows, including Central Government Transfers (CGTs), Locally Generated Revenues (LGRs), and Other Recurrent Transactions (ORTs).
“The councils, for instance, failed to access CGTs in the months of September, November, and December 2024,” the report states.
This non-funding has paralyzed service delivery, grinding critical sectors such as public health, education, and agriculture to a halt. The impact is devastating:
- MK9.65 billion in Constituency Development Funds (CDF) remains unfunded, choking local development projects.
- MK4.4 billion for city roads has not been released, worsening already poor infrastructure.
- Health services are crumbling, with hospitals not receiving MK3.14 billion for operational expenses and MK624 million meant for essential drugs.
While the District Development Fund, Infrastructure Development Fund, Boreholes, and Hospital Rehabilitation received full funding, this is only a small consolation in the face of widespread financial distress.
A Systemic Crisis in Local Governance
There are 35 local authorities in Malawi—28 district councils, 4 city councils, and 3 municipal councils—responsible for delivering crucial public services. Yet, in the 2024/25 financial year, these councils have been handed an impossible task:
- The total LGAs budget is MK183 billion, of which MK141 billion was expected from CGTs and MK42 billion from LGRs.
- So far, councils have received only MK87.1 billion from the central government, a mere 62% of the total expected transfers.
This funding shortfall exposes Malawi’s failure to decentralize financial power, despite repeated promises of fiscal devolution.
MALGA Sounds the Alarm
MALGA Executive Director Hadrod Zeru Mkandawire has warned that these budget constraints are more than just numbers—they translate into suffering for ordinary Malawians. The quarterly budget analysis aims to track central government transfers, expose financial mismanagement, and push for policy reforms.
“The budget analysis is expected to contribute to improved service delivery at the local level by influencing policy shifts, enhancing fiscal devolution, and improving financial management systems,” Mkandawire stated.
However, without urgent intervention from the central government, councils will remain powerless, failing the very people they are meant to serve.
Malawi’s Local Government on the Verge of Collapse
The continued neglect of local councils is not just a funding issue—it’s a governance failure. As roads deteriorate, hospitals struggle, and development stalls, the question remains: Why has the government abandoned its own councils?
The people of Malawi deserve answers. More importantly, they deserve action.
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