Football Association of Malawi (FAM) has reported its highest-ever revenue in 2025, but the financial windfall was largely offset by a sharp rise in expenditure, leaving the association with a surplus 73 percent lower than in 2024.
FAM audited financial report presented at the association’s annual general meeting (AGM) in Salima on Saturday show that total revenue increased by 44 percent from K9.55 billion in 2024 to K13.76 billion in 2025.
However, expenditure also rose sharply during the period, with total expenses increasing from K8.83 billion to K13.57 billion.
The largest spending categories were operations at K8.03 billion, administration K3.50 billion and projects K1.02 billion, according to the report.
As a result, FAM’s surplus dropped from K716.1 million to K191.1 million.
The report also shows that the association’s cash and cash equivalents declined by about 62 percent, from K2.32 billion to K871.3 million.
FAM operations director Gomezgani Zakazaka in an interview yesterday attributed the increase in expenditure to national teams’ engagements.
He said: “FAM uses activity-based budgeting. Every revenue inflow is tagged to an activity. The more revenue, the more activities and more expenditure. The rise in expenditure is due to the national teams’ participation in various international engagement of all age groups. The 2024 participation was of lower magnitude compared to the year 2025.”
During the year under review, the Scorchers played eight international friendly matches, qualified for the Women’s Africa Cup of Nations and took part in the Three Nations Tournament.
The Flames, on the other hand, played three international friendly matches and featured in the Africa Cup of Nations, African Nations Championship and Fifa World Cup qualifiers.
The Under-20 Women’s National Football Team competed in the Fifa Under-20 Women’s World Cup qualifiers while the Under-17 women’s side participated in the Cosafa Championship.
The Under-20 and Under-17 boys’ national teams also competed in the Cosafa Youth Championships while Malawi participated in the CAF African Schools Championship Under-15 boys’ and girls’ qualifiers.
On the K3.50 billion administration bill, Zakazaka said it rose in line with increased operational activities.
The K1 billion on projects was spent on Nsanje Community Ground completetion
Explaining the 73 percent drop in surplus, he said: “FAM is a non-profit making organisation. All funds are ploughed back to operationalising the game as per mandate and mission.
On the 62 percent decline in cash and cash equivalents, Zakazaka said: “The year 2024 closed with funds meant for projects to be executed in the year 2025 in line with Fifa guidelines, hence the fall of the balances upon projects execution.”
Sports management expert George Kaudza Masina, who is also former FAM general secretary, said despite the significant growth in revenue, the sharp rise in expenditure is a concern.
He said: “Despite significant revenue growth, it is worrisome that expenditure increased too.
“The expenditure might be a result of a misalignment of the assumptions used in formulating the budget, considering the economic downturn over the period under review.”
Masina, however, acknowledged that FAM significantly expanded its activities during the financial year.
“If you look at operations, FAM has been more active, engaging all the national teams, capacity building, increase in subvention and a new affiliate, theEastern Region Football Association, being born, which might have increased their expenditure purse,” he said.
But the decline in cash reserves should not be overlooked, according to Masina.
He said: “Just looking at the figures, the 2025 decline in the association’s cash and cash equivalent as compared to 2024 is not healthy and needs some soul searching.”
Despite the reduced surplus, FAM recorded strong revenue growth.
Grant funding from Fifa, Malawi Government and sponsors remained the association’s biggest source of income at K6.19 billion while competition income rose to K2.03 billion from K528 million.
FAM also generated K319 million from gate collections while sponsorship income stood at K300 million.
On the balance sheet, FAM reduced its current liabilities from K4.44 billion to K2.11 billion while total reserves increased from K2.89 billion to K3.04 billion.
Trade and other receivables also fell from K1.83 billion to K1.37 billion.
