By Peter Davieson

Economist Deric Mina has urged local councils in Malawi to explore alternative ways of generating revenue in order to reduce overdependence on central government funding.

Speaking to YFM, Mina suggested that councils should consider building commercial infrastructure such as shops and establishing strong partnerships with non-governmental organizations (NGOs) as potential avenues for raising funds to support development initiatives within their jurisdictions.

His remarks follow concerns raised by the Malawi Local Government Association (MALGA), which recently revealed that councils had only received about 70 percent of their allocated funds during the first six months of the 2025/2026 national budget.

According to MALGA, this shortfall is significantly hindering the councils’ ability to deliver on key services and development projects.

Mina emphasized that while government support remains crucial, councils must become more proactive in finding sustainable sources of income to ensure continued progress even when government disbursements are delayed or insufficient.

“I’m not saying the government should stop funding local councils—far from it. The government must continue to play its part and provide adequate resources,” Mina said.

“However, councils need to take the initiative to ensure that development efforts do not stall due to funding gaps.”

He added that it is time councils adopted innovative and strategic approaches to financial management to enhance service delivery and long-term self-sufficiency.