Non-Governmental Organisations Regulatory Authority (Ngora) says forex tracking and coordination remains a challenge in the sector.
Ngora board chairperson Innocentia Ottober made the remarks on Friday during the 2025 NGO Day commemorations at Mzuzu Stadium.
She, however, said there have been some improvements in monitoring due to the Exchange Control Regulations.
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Her remarks come on the backdrop of some NGOs’ concerns that the 80 percent mandatory conversion of forex highlighted in the recently gazetted foreign exchange law could affect their operations.
Ottober explained that Ngora is also finalising a memorandum of understanding (MoU) with the Reserve Bank of Malawi (RBM) to improve monitoring.
She said: “We recognise the boost to domestic liquidity that will be brought by the recent Exchange Control Regulations requiring conversion of foreign currency into Malawi kwacha.”
Ottober said in 2025, the NGO sector reported a total income of K1.017 trillion, with K747 billion received in foreign currency, mainly US dollars, British pounds and euros.
“These inflows make a significant contribution to Malawi’s foreign exchange reserves, supporting humanitarian interventions and the wider economy,” she said.
On funding challenges facing the sector due to aid cuts by major development partners such as the United States Agency for International Development, she called for “a deliberate shift towards domestic resource mobilization, stronger compliance, fairer distribution of resources across the sector and investment in local institutional capacity.”
Delivering her keynote address, Minister of Gender, Community Development and Social Welfare Jean Sendeza commended Ngora’s collaboration with RBM in improving forex tracking, saying that will ensure resources are used in line with national priorities.
She said: “The recent Exchange Control Regulations will enhance domestic liquidity while supporting NGOs with foreign-denominated obligations.”
In response to concerns by some NGOs that the 80 percent mandatory conversion of forex, Minister of Gender, Community Development and Social Welfare Jean Sendeza said the regulations were made in consultation with the NGOs.
“All NGOs are aware that we need to have these regulations. And as a country, we just cannot be doing business as usual. We need to follow the legal framework,” she said.
Last month, NGOs under the banner of National Advocacy Platform, expressed fear that the 80 percent mandatory conversion could affect their operations.
The Exchange Control (Management of Non-Governmental Organisations and Public Sector Foreign Currency Receipts) Regulations of 2025 indicate the NGOs’ Forex conversion ratio of 80 percent.
Reads the regulation in part reads: “The Bank shall apply a mandatory conversion or retention ratio of 80 percent of the total funding credited in a holding foreign currency-denominated account, at the official buying exchange rate, published by the Bank.
“A holding foreign currency-denominated account holder that requests the transfer of funds in accordance with sub-regulation shall complete and submit a bank transfer instruction to its bank, and the bank shall immediately submit a request to the Bank for release of the funds to the operating account of the requesting institution.
“Where the funds requested will be used within Malaŵi, the Bank shall transfer the funds so requested to the authorised dealer bank in the Malaŵi currency equivalent, converted using the official buying exchange rate published by the Bank, on the day the transfer is effected.”
