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EN
Donors plan funding cuts to Malawi beyond 2027—UN
['Grace Phiri', 'Harry Lemani', 'Silvester Saka', 'Willard Chikwanje']
Nation Online
The United Nations says beyond 2027, most donors are already signalling reduction in their funding to Malawi, which will put a further strain on sustainability of social sector spending.
The move comes at a time most development partners have opted to provide direct assistance to specific programmes or through third-party managed-funding mechanisms.
Reads the analysis in part: “The reduction in ODA to Malawi threatens to exacerbate the country’s existing macroeconomic vulnerabilities and derail its long-term development trajectory.
In relative terms, ODA flows to Malawi constituted 82 percent of total external inflows in 2023, compared to FDI at 10 percent and remittances at eight percent, according to the UN.
“This means a decrease in ODA grants impact the delivery of essential services and hinder poverty reduction efforts,” he said.
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