Is black culture blocking path to financial, economic development?
National Planning Commission (NPC) director general Thomas Munthali recently made a thought-provoking presentation on the status of Malawi 2063 at the University of Malawi. The presentation highlighted the threats to the nation’s premier growth and development blueprint, underscoring the need for urgent action.
The NPC head appraised the students on the progress made in implementing the Malawi 2063, particularly the first 10-year implementation plan (MIP-1). While there has been significant progress, with 44 percent of key interventions either on track or completed, the director general emphasized the need to accelerate efforts to achieve the project’s full potential.
One area that caught particular attention was Munthali’s remarks on how a culture of handouts is undermining Malawi’s vision to be a self-reliant and inclusively wealthy nation by 2063. This is a discussion that is long overdue, and perhaps it’s time to normalise candid conversations about financial independence.
When discussing financial freedom and economic progress within Black communities, it is crucial to acknowledge both systemic challenges and internal cultural dynamics. A conversation about barriers to financial prosperity within these communities often revolves around systemic inequalities such as unequal access to credit, education, and employment opportunities.
However, it is equally important to examine internal factors rooted in cultural attitudes toward money, wealth, and success. This includes the perception of financial freedom, spending habits, and the persistent expectation of the so-called “black tax.”
A prevalent belief in some Black communities is that the financial success of one family member can absolve others from personal financial responsibility. This can lead to a sense of entitlement among other family members, resulting in complacency towards their own financial goals.
Rather than inspiring others to improve their own financial standing, the success of one member often becomes a crutch for others to lean on, allowing them to neglect their personal financial goals. This trend not only undermines individual accountability but also perpetuates the financial struggles of the broader family unit.
Financial freedom, if misunderstood as collective wealth without collective effort, creates dependency that undermines self-reliance and long-term family prosperity. Individuals who attain financial success often find themselves burdened with the financial responsibilities of others.
Another cultural challenge that impedes financial growth is the innate desire for lavish lifestyles, often regardless of financial means. This cultural norm revolves around the idea that living within one’s means is somehow a sign of inadequacy or lack of success. Instead, there is a tendency to project success through lavish spending, even when those purchases lead to debt. The drive to “keep up appearances” often results in people spending far beyond what they can afford, just to avoid being perceived as financially struggling.
The resistance to financial advice—particularly when it suggests cutting back on unnecessary expenses—is deeply embedded in cultural perceptions of success. Many individuals are averse to being told that they need to live within their means because it clashes with their desire to portray an image of success. This phenomenon not only drains personal savings but also hinders efforts to build generational wealth.
Perhaps the most significant financial strain within Black culture is the concept of the “black tax”. This refers to the unspoken but widespread expectation that financially successful individuals must financially support their extended families and communities.
This responsibility, while noble in intent, often prevents people from saving for their future or investing in wealth-building opportunities. Instead of focusing on long-term financial security, they find themselves constantly solving the immediate financial problems of others. The financial burden of supporting extended family members can significantly hinder wealth accumulation. While this kind of support is often seen as a cultural obligation, it creates a heavy financial burden on those who have attained financial success. The “black tax” leaves little room for wealth accumulation, as funds that could be used for saving, investing, or entrepreneurship are instead diverted towards fulfilling the needs of others.