Malawi faces funding shortages for local councils and NGOs

Malawi is facing significant financial constraints affecting both the non-governmental and local government sectors. The Council for Non-Governmental Organisations in Malawi (Congoma) reports that many NGOs are struggling to meet annual reporting and compliance requirements due to a lack of funding. According to the NGO Regulatory Authority (Ngora), compliance for the year ending December 2025 stands at 67 percent, an improvement from previous years but still leaving over 300 active organizations non-compliant. Congoma chairperson George Jobe noted that some organizations cannot afford necessary auditors or regulatory fees.

Simultaneously, local government authorities are experiencing a severe budget shortfall. The National Local Government Finance Committee revealed that councils have received only nine percent of their K1.25 trillion Parliament-approved allocation for the 2026/27 financial year. While Other Recurrent Transactions (ORT) funding is at 56 percent, development funding has seen a release of only four percent. This funding gap threatens essential services including education, health, agriculture, and disaster risk management, as well as constituency development projects.