Malawi urged to cut donor dependence

Malawi is being urged to reduce its dependence on foreign aid and invest more in its own resources as shrinking donor support exposes the need for a more self-reliant economy.

Tiyende Limodzi Endowment Fund board chairperson Phillip Madinga said the country should treat the decline in donor assistance as a wake-up call to strengthen domestic resource mobilisation and secure sustainable development.

Madinga said the changes in donor funding should push the country to find home-grown solutions and strengthen domestic resource mobilisation.

“Recent reductions in donor funding show it is time for Malawi to become more self-reliant and develop home-grown solutions,” said Madinga, who is also Standard Bank Malawi chief executive.

He was speaking in Lilongwe on Saturday during the launch of the Tiyende Limodzi Endowment Fund for the Catholic Archdiocese of Lilongwe.

Madinga said the country needs to build stronger local financing systems to support development programmes and reduce its vulnerability to changes in external funding.

His remarks come after the United Kingdom announced plans to cut its development assistance to Malawi by 60 percent in the 2026/27 financial year, with the reduction expected to reach 90 percent by the 2028/29 financial year.

The aid cuts have raised questions about how Malawi will finance key development programmes as the country continues to depend on external support in several sectors.

The Tiyende Limodzi Endowment Fund seeks to raise K10 billion to create a sustainable source of funding for the Catholic Archdiocese of Lilongwe’s work in education, healthcare, evangelisation and community development.

Auxiliary Bishop Vincent Mwakhwawa said the Church established the fund in response to growing needs in education, health, and other social services.

“The Church has schools, but the population is growing, and we need more schools. We have hospitals, but they are under increasing pressure and require more equipment,” he said.

Mwakhwawa said the money raised will be invested through professional fund managers, with returns used to support projects while the capital is preserved for future generations.

He also called on Malawians to work together to address the country’s development challenges.

“This country can not be developed by one individual. It requires collective ideas, commitment, and contributions from all of us if we are to transform our nation,” he said.

Finance Minister Joseph Mwanamvekha, who was a guest of honour at the launch, said Malawi will continue receiving support from development partners despite cuts by some donors.

He said Malawi has already secured more than $900 million (about K1.6 trillion) from the United States under the America First Global Health Strategy and is also expecting additional financing from the World Bank and African Development Bank.

“Donors are not withdrawing; they are reallocating their investments. Malawi will continue receiving support and even more than before,” Mwanamvekha said.

The launch raised K118 million in cash and pledges during a gala dinner, while an additional K43 million was raised during an earlier Mass.

The endowment fund now faces the task of mobilising the remaining funds to reach its K10 billion target and build a long-term source of financing for the Archdiocese’s programmes.