GOVERNANCE BY THE PEOPLE, FOR THE PEOPLE
16.1 Overview
Malawi’s centralized governance has long hindered service delivery, economic
growth, and community empowerment. Despite the 1998 Decentralization Policy
aimed at devolving administrative and political authority to the district level, power
and resources remain concentrated in the capital, leaving local governments
underfunded, ineffective, and disconnected from the communities they are meant
to serve.
A UTM-led government recognizes that true development starts at the grassroots
level. Decentralization is not just about shifting administrative functions but about
empowering districts, towns, and villages to take charge of their own development.
Aligned with MW2063’s Governance Enabler and pillars such as Human Capital
Development and Inclusive Wealth Creation, UTM’s decentralization agenda will
ensure participatory governance, efficient service delivery, and empowered local
leadership that drives economic and social transformation.
16.2 Challenges in Decentralization
- Weak and visionless leadership, resistant to mindset change: failing to implement
a long-standing decentralization policy, hoarding power and resources. - Limited Financial Autonomy: District councils lack adequate funding and control
over resources, leading to inefficiencies and incomplete projects. - Weak Capacity: Local governments are often under-resourced and lack skilled
personnel to execute development plans effectively. - Centralized Decision-Making: Critical decisions remain concentrated at the
national level, sidelining district councils and undermining decentralization
principles. - Accountability Issues: Weak oversight mechanisms have resulted in poor service
delivery and misuse of resources at the local level. - Fragmented Planning: Poor coordination between national and district-level
plans has led to duplications and misaligned priorities.
16.3 Target Milestones
By 2030, UTM aims to: - Ensure 95% of local government
services are fully decentralized,
improving efficiency and
accessibility. - District GDP Contributions: Each
district will be empowered and
expected to contribute significantly
to the national GDP, with clear
targets set and supported by
capacity-building initiatives. - Digitize 100% of district council
operations for transparency,
efficiency, and accountability. - Building on existing but
unimplemented policies, we will
establish District Development
Agencies (DDAs) in every
district, operating under the
umbrella of a rebranded, Malawi
Development Agency (MDA), to
drive transformative economic and
social initiatives
16.4 UTM Pledges: Transforming Decentralization
16.4.1 Financial Empowerment of District Councils
Alignment with MW2063: Advances Inclusive Wealth Creation by enabling local
governments to address development needs effectively.
UTM Pledges:
- Direct Budget Allocations: Allocate 25% of the national budget, during the first 2
years, directly to district councils to fund local development priorities, and up to
50% by the end of UTM’s First Term. - Targeted Loans: The Treasury will lend money to districts based on viable projects
with clear returns on investment, such as the development of local markets or
other revenue-generating infrastructure. - Independent Revenue Collection: Empower districts to generate their own
revenue through local taxes and fees, supported by transparent oversight
mechanisms. - District Development Funds: Establish dedicated funds for projects such as
infrastructure, healthcare, and education, ensuring equitable distribution across
all regions.
16.4.2 Capacity Building for Local Governments
Alignment with MW2063: Strengthens Governance and promotes Human Capital
Development.
UTM Pledges: - Training Programs: Train district council staff in financial management, urban
planning, and project execution. - Resource Provision: Equip councils with well trained accountants, tools and
technology for efficient administration, including e-governance platforms. - Merit-Based Recruitment: Implement transparent hiring processes to attract
skilled professionals to local government roles.
16.4.3 Decentralized Service Delivery
Alignment with MW2063: Supports Inclusive Wealth Creation by ensuring equitable
access to services.
UTM Pledges: - Localized Services: Shift critical services such as driver’s licenses, car registration,
and passport issuance to regional offices. - Health and Education: Empower districts to manage local health and education
facilities, improving accountability and responsiveness. - Infrastructure Maintenance: Assign districts responsibility for maintaining B and C
roads, with funding tied to performance metrics.
16.4.4 Establishing District Development Agencies (DDAs)
Alignment with MW2063: Facilitates Governance and Private Sector Dynamism.
UTM Pledges:
- Purpose and Integration: Establish DDAs as semi-autonomous entities
responsible for implementing transformative district projects like mega farms,
agro-processing hubs, and tourism zones. - One-Stop Coordination: Operate DDAs as intergovernmental departments to
streamline service delivery and align with national priorities. - Private Sector Partnerships: Facilitate collaborations between DDAs and private
investors to accelerate district-level economic growth.
16.4.5 Accountability and Oversight
Alignment with MW2063: Strengthens
Governance by enhancing
transparency and performance
monitoring.
UTM Pledges: - Report to the Parent Malawi
Development Agency (MDA)
Allocations and oversight to be
conducted by the MDA that will run
the country wide budget. - Performance Audits: Empower
the National Audit Office (NAO)
to conduct regular audits of
district councils to assess financial
management and service delivery. - Digital Transparency Platforms:
Launch online platforms where
citizens can track budgets, projects,
and council performance in real
time
16.5 Estimated Investments and Funding Mechanisms
Estimated Investment: $5 billion over the next decade to finally realize full
decentralization
Funding Models:
- National Budget Allocation: Dedicate 25% of the national budget to district
councils, ensuring adequate funding for locally-driven initiatives. - Public-Private Partnerships (PPPs): Encourage private sector investments in local
infrastructure and service delivery. - Donor Support: Work with international partners to fund capacity-building
programs and transformative district projects. - District Revenue Streams: Support districts in generating their own income
through local taxes, fees, and
public services.
Conclusion
Decentralization is the foundation of a participatory and effective governance system. By empowering local governments, aligning development efforts with MW2063’s goals, and promoting transparency, UTM’s decentralization agenda will ensure that every Malawian feels the impact of national progress at the community level. Under UTM leadership, Malawi will realize a decentralized system that fosters inclusivity,
accountability, and equitable development. Together, we will build a Malawi where local governments drive progress, creating a nation where every community thrives.