Discussants at a panel discussion themed ‘The future of aid in Malawi: Implications on governance and development’ have stressed the need for Malawi to focus on home-grown solutions to achieve meaningful development amid donor fatigue.
Convened by University of Malawi (Unima) Professors Happy Kayuni and Michael Chasukwa in collaboration with University of Oslo Professor Dan Banik in Blantyre on Saturday, the discussion reflected on the changing global aid environment and Malawi’s preparedness for a future with reduced donor support.
the narrative. | Jonathan Pasungwi
Banik, in his presentation, said Malawi needs to fundamentally change its development narrative from dependence on donor funding to “issue-based funds” that respond to local priorities and evidence.
He said the global development landscape is rapidly changing, with traditional donor countries reducing aid commitments due to geopolitical tensions, economic pressures and shifting priorities.
“Malawi really needs to change the narrative from donor funds to issue-based funds. I think another issue is the misrepresentation of priorities. Let’s look into the investments that can really move us out of poverty,” said Banik.
The academic also questioned why certain projects and sectors continue receiving priority in national budgets without sufficient evidence that they produce meaningful transformation for ordinary citizens.
Banik observed that Malawi has frequently been portrayed negatively in global development discussions despite having the potential to succeed if it focuses on evidence-driven investments and realistic planning.
“I’ve been arguing that we should focus on evidence, not just naive optimism. Let’s see the data. What has been working? Let’s invest in those sectors,” he said.
In his contribution, Youth for Development and Productivity monitoring, evaluation, accountability and learning coordinator Kayondo Silumbu said the effectiveness of aid depends largely on the strength of government systems.
He observed that some forms of aid come with conditions and governance concerns that make project aid a safer option for Malawi in certain circumstances.
But Her Liberty executive director Tikhala Itaye offered a contrasting view, arguing that government-to-government support is more sustainable and allows national institutions to take ownership of development priorities.
The discussions exposed concerns that international organisations still dominate decision-making processes in development programming.
Transparency Initiative executive director Nicholas Mwasama observed that many projects implemented in Malawi continue to be designed and driven externally, with limited input from local institutions and communities.
Participants argued that genuine localisation should empower Malawians to define their own development priorities rather than simply implement externally designed interventions.
In an interview after the discussion, Unima Vice-Chancellor Professor Samson Sajidu observed that the topic was crucial as it will contribute to the Malawi’s 2063 vision.
“So to us we want to do a research and make sure that indeed, it should be doable that we can survive as a country without depending on aid,” he said.
During the discussion, participants agreed that Malawi has the potential to become less dependent on aid if it prioritises accountability, productive investments, citizen participation and locally driven solutions.
Last week, International Monetary Fund (IMF) said Malawi’s fragile public finances are under renewed strain due to global aid cuts that expose deep structural flaws in its economic model. IMF warned that the shock could either accelerate fiscal instability or compel long-overdue reforms.
The United Nations also said funding constraints remain a major limitation to the country’s commitment to the 2030 Agenda for Sustainable Development and its long-term development strategy, Malawi 2063 (MW2063) which seeks to transform the economy to lower middle-income status by 2030 and upper middle-income by 2063.
In recent years, statutory obligations such as wages, debt interest, pensions have consumed an average of 94 percent of domestic revenue, leaving minimal room for discretionary spending. However, in 2026/27 fiscal year, this ratio is projected to decline to 78.9 percent, creating K1.36 trillion in new fiscal space, the most significant expansion in the MW2063 First Ten-Year Implementation Plan.
