Malawi’s NGO sector generated K1.3 trillion ($568 million) in reported income in 2026, surpassing tobacco’s $286.7 million (about K487 billion) earnings, but mounting funding pressures, job losses and organisational closures are raising questions about the sector’s sustainability.
The 2026 Non-governmental Organisation (NGO) Sector Report, released by NGO Regulatory Authority (Ngora) in Lilongwe on Tuesday, shows that the sector continues to make a substantial contribution to the economy despite the withdrawal of traditional donors, including the United States Agency for International Development (USAid).
However, beneath the impressive income figures lies a sector under growing strain, with employment falling by about 23 percent, 130 organisations failing to implement projects and another 26 ceasing operations during the reporting period.
Presenting the report, Ngora chief executive officer Voice Mhone said the income figure was encouraging, particularly given fears that the withdrawal of traditional donor support would significantly affect the sector.
“This is not a simple figure. This is not a small figure. It shows that this sector is really contributing massively to the economy of Malawi,” he said.
Mhone said foundations were increasingly stepping in to replace traditional donors while about 77 percent of the reported income was received in foreign currency.
However, the report shows that employment in the sector declined from about 29 000 in 2025 to approximately 22 000 in 2026.
The figures also reveal a concentration of resources among a small number of organisations, with the 20 highest-income NGOs accounting for about half of the sector’s reported income.
Minister of Gender, Children, Disability and Social Welfare Mary Navicha, who was guest of honour at the launch, said the findings offered NGOs an opportunity to assess their performance and address weaknesses.
Ngora board chairperson Bertha Lipipa said the foreign exchange earnings showed the sector’s potential to contribute further to economic growth, but urged local NGOs to strengthen compliance and develop alternative sources of income.
As of June 30 2026, Malawi had 1 403 registered NGOs, comprising 1 161 local and 242 international organisations.
