Layman's Reflection

Now more than ever, every kwacha must count

When Minister of Education, Science and Technology Bright Msaka addressed Parliament on Tuesday, he questioned why some government-funded secondary school projects are reportedly costing between K1 billion and K4 billion, while a community day secondary school constructed by a German non-governmental organisation in Mwanza cost about €110 000, roughly K250 million to K300 million.

Whether those projects are identical is a legitimate technical question. Some schools may include additional facilities, larger campuses or different specifications that justify higher costs.

But that does not diminish the broader issue.

The debate is no longer simply about how much it costs to build a school. It is about whether Malawi is obtaining value for money from every public investment.

That question has become more urgent than ever.

Barely three months after Parliament approved the 2026/27 K11 trillion National Budget, the government is already implementing it under far tighter economic conditions than anticipated.

Economic growth has weakened, inflation remains stubbornly high, public debt continues to rise and foreign exchange shortages persist.

Treasury has repeatedly reminded Malawians that fiscal space is limited.

Limited resources demand a different way of thinking.

The greatest risk is assuming that solving Malawi’s development challenges requires ever larger budgets. Increasingly, it requires better spending.

For years, public debate has largely focused on mobilising more revenue through higher taxes, additional borrowing and increased development assistance. Those conversations are important because government cannot finance development without adequate resources.

However, an equally important question receives far less attention.

Are taxpayers receiving the maximum possible value from the money government already spends?

The answer matters because the real cost of an inflated public contract is rarely measured in kwacha alone. It is measured in opportunities forgone.

If one school genuinely costs K1 billion when a comparable project could be delivered for a fraction of that amount, the country has not simply overspent on one contract. It has reduced its ability to construct additional schools, recruit teachers or expand access to education elsewhere.

The same principle extends across the Government.

Every overpriced road means fewer kilometres rehabilitated. Every inflated hospital contract means fewer health facilities. Every unnecessary expenditure reduces the government’s ability to finance irrigation schemes, water projects and other productive investments.

Waste therefore becomes more than a governance concern. It becomes a development constraint. This is why procurement reform deserves to be viewed differently.

Too often, procurement is discussed solely as an anti-corruption issue. That remains important. Public resources must always be protected from abuse. But procurement has also become a fiscal issue.

When resources are constrained, every unnecessary cost increases pressure on the Budget. Every inflated contract forces the government to sacrifice another development priority.

Improving procurement systems is, therefore, not simply about identifying wrongdoing. It is about ensuring that scarce public resources generate the greatest possible economic and social return.

In today’s Malawi, procurement reform is fiscal reform.

That requires greater transparency in project costing, stronger oversight and more rigorous scrutiny of unusually expensive contracts before they are awarded rather than after concerns emerge.

It also requires the government to benchmark construction costs more consistently so that legitimate cost differences can be distinguished from excessive pricing.

This does not mean selecting the cheapest contractor in every case. Quality, durability and technical specifications matter.

But so does public confidence.

Taxpayers deserve to understand why projects delivering similar outcomes can carry vastly different price tags.

Msaka has indicated that his ministry will engage stakeholders to review the matter. That commitment deserves support.

However, the success of that exercise should not be judged solely by whether individual contracts are questioned. It should be judged by whether it strengthens the government’s ability to deliver more development with the resources already available.

Malawi’s fiscal constraints are unlikely to disappear soon. Ministries will continue competing for limited funding while demands for schools, hospitals, roads and irrigation schemes continue to grow.

The country, therefore, has little choice.

Scarcity demands better government, not bigger budgets.

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