Govt insists CDF money is available

The Malawi government has moved to defend its Constituency Development Fund (CDF) implementation plans amid growing doubts over whether it has enough resources to support the programme.

The Democratic Progressive Part (DPP) government has faced criticism over its promise to provide K5 billion CDF funding to each constituency, with some critics questioning whether the pledge is realistic amid concerns over government finances.

Some members of parliament have also accused government of struggling to implement the reformed CDF because there is no money available.

However, Minister of Local Government and Rural Development Ben Phiri has dismissed the concerns, saying government has resources for the fund and that implementation of the reformed system is progressing.

He told parliament that K15 billion has already gone to Malawi Enterprise Development Fund (MEDF) loans through CDF, while 20 percent mobilisation funds for contractors will be released to councils once procurement processes are completed.

“We have changed the policy governing CDF and changes always come with challenges, but progress is already visible,” Phiri said.

He said the reforms were introduced to improve accountability, arguing that the previous system of releasing funds quarterly to councils created room for abuse.

“Previously money was dumped quarterly at councils whether they were ready or not. Now the fund is demand-driven, with payments made after specific stages are completed,” he said.

Phiri added that the new approach ensures funds are released based on project progress rather than simply being transferred to councils.

“I can assure you that we are cruising,” he said.

The minister also said separating district and municipal offices will help spread development across the country and reduce pressure on major cities by creating more opportunities in smaller towns.

He said the move aligns with Malawi’s long-term development plans, including Malawi 2063, which seeks to promote urbanisation and economic growth beyond traditional city centres.