Debate has ensued on promises by political parties that were represented in Parliament to channel substantial financing directly to district councils and constituencies purportedly to drive decentralisation.
But economic and governance experts have warned that the promises ahead of the September 16 General Election clash with Malawi’s debt-strapped economy.
In its manifesto, UTM Party promises K100 billion per district annually to revamp the economy and improve education, among other initiatives while the former governing Democratic Progressive Party (DPP) is pledging K5 billion per constituency, translating to K1.15 trillion for 229 seats, K100 million in women’s loans and K50 million for youth programmes per constituency.
On the other hand, the governing Malawi Congress Party (MCP) has committed to allocate K500 million as Constituency Development Fund (CDF) if re-elected.
The commitments come against a background of Malawi reeling under a fragile economy battling debt, foreign exchange shortages and persistent budget deficits.
Ministry of Finance and Economic Affairs data show that as at September 2024, total public debt stock stood at K16.19 trillion or 86.4 percent of gross domestic product, with external debt recorded at K7.4 trillion and domestic debt at K8.79 trillion. Malawi’s debt is higher than the 65 percent recommended threshold by global financial institutions.
Further, debt payments take up 43 percent of the country’s domestic revenues, limiting the government’s capacity to spend on other budget lines, according to the International Monetary Fund.
In the K8 trillion 2025/26 National Budget, K2.17 trillion is earmarked for public debt interest payments.
UTM Party spokesperson Felix Njawala, in an interview yesterday, said the K100 billion per district plan hinges on enforcing fiscal discipline, fighting corruption, and cutting waste.
“The ultimate goal is equal distribution of development and economic growth in all districts. This is achievable if we stop corruption and unnecessary expenditures,” he said.
People’s Party (PP) secretary general Ben Chakhame, whose party has promised free secondary school education—a pledge critics say requires heavy investment to avoid compromising standards and quality, also said Malawi has resources but faces challenges of wastage and misallocation of funds.
He said: “Firstly, let’s appreciate that currently there is lack of fiscal discipline. For instance, remember our presidential candidate was at the State House before, and so we sat down and noted that State Residences can operate effectively with K25 billion, meaning if you look at the current budget and one cost centre only, we can save over K40 billion.”
Chakhame added that the PP has also identified areas that will boost the country’s revenue base.
DPP spokesperson Shadric Namalomba did not respond to our questionnaire, but the party’s manifesto chairperson Collins Magalasi, speaking during the launch of the manifesto on Sunday in Blantyre, said the funds would come from Malawi Revenue Authority (MRA) collections and export growth.
Meanwhile, analysts have questioned funding sources for the party’s big promises, noting that Malawi’s K4.9 trillion 2024/25 Budget already faces a K1.4 trillion deficit.
University of Malawi lecturer in legislative and electoral politics Gift Sambo doubted the ideological commitment.
He said the idea of transferring such huge sums of money to local councils can only be achieved by political actors that are ideologically committed towards the notion of the sanctity of local autonomy.
Said Sambo: “Political elites remain sceptical about the idea of granting full autonomy to local polities. As such, we need to take such promises with a pinch of salt. They are virtually unrealistic.”
On his part, Political Science Association spokesperson Mavuto Bamusi warned: “These promises require massive revenue growth, accountability and prudent debt management. Manifestos often become empty rhetoric, breeding voter apathy.”
Political analyst Ernest Thindwa questioned the practicality of such promises, observing that budgets are perennially underfunded, with deficits worsened by borrowing.
In a separate interview, economist Bond Mtembezeka, who is Business Partners International Malawi country manager, backed decentralisation’s merits tailored solutions and local ownership but stressed that what matters is delivery.
Economic policy analyst Dalitso Kubalasa proposed concrete steps to make decentralisation work such as the direct community financing model of UTM Party’s ward fund initiative.
He said it represents an easily achievable goal, only if initiated through a pilot programme, with stringent accountability measures and is aligned with local development priorities, established by communities rather than dictated by politicians.
On DPP’s local revenue strategy, Kubalasa said: “This is feasible only if councils retain more local taxes and market fees. Digitise fee collection via mobile money to minimise leakages.”
The requirement for political parties to align their manifestos with the country’s long-term development strategy, Malawi 2063 (MW2063) has come under scrutiny over enforcement of its implementation.
The Political Parties Amendment Act of 2022 mandates the National Planning Commission (NPC) to enforce the implementation of the winning party’s manifesto after the 2025 General Election.
MCP spokesperson Jessie Kabwila is yet to respond to our questionnaire.
