Minister of Local Government and Rural Development Ben Phiri says the reformed K5 billion Constituency Development Fund (CDF) is set for rollout with enhanced accountability, including performance-based financing model planning and project delivery.
But the setup has drawn mixed reaction from stakeholders.
Speaking during a press briefing in Lilongwe yesterday, Phiri said the reforms are designed to shift CDF from fragmented project implementation to a structured local development financing system anchored in stronger controls.
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He said his ministry, working with the ministries of Finance and Justice, developed new guidelines to standardise planning, budgeting, procurement, implementation, monitoring and reporting across local councils.
“The guidelines provide a coherent and disciplined framework on how the resources will be used,” said Phiri.
He said the reforms seek to transform CDF from isolated project funding into a strategic, performance-based development financing mechanism.
Phiri said the approach builds on lessons from the World Bank-supported Governance to Enable Service Delivery (Gesd) programme, a performance-based grant where councils registered strong performance outcomes.
“The experience provides a foundation for scaling up results-based implementation under the reformed To strengthen transparency, government is developing a digital CDF dashboard that will provide real-time tracking of planning, procurement, implementation and financial management.
Procurement will be conducted through the Malawi National Electronic Procurement System, while councils’ cash flows, including administrative costs and contractor advances, will be managed through the Integrated Financial Management Information System.
The programme is also expected to create jobs through recruitment of constituency-level personnel, including works supervisors, assistant accountants and assistant procurement officers, with hiring scheduled for completion by July.
However, governance stakeholders say the success of the reforms will depend on enforcement, political restraint and stronger grassroots oversight.
In an interview, Malawi Local Government Authorities chief executive officer Hadrod Mkandawire said safeguarding technical and administrative processes from political interference will be crucial to achieving value for money.
He, however, noted that the revised guidelines provide stronger accountability tools that citizens and civil society can use to enhance oversight.
Rumphi Central legislator Mathews Mtumbuka (UTM Party) said he is operating within existing constituency development structures and supporting collective decision-making under the revised framework.
But he cautioned that unrealistic project cost estimates could undermine efficiency.
Meanwhile, Centre for Social Transparency and Accountability executive director Willy Kambwandira warned that the reforms risk failure if grassroots accountability mechanisms remain weak.
The development of the new guidelines was itself politically contested, with legislators from both ruling and opposition benches pushing for greater direct influence over project selection and implementation structures.
Each of the country’s 229 constituencies will receive K5 billion for implementation of development projects, translating into a potential national envelope of roughly K1.145 trillion. Previously, the CDF amount was K200 million.
