MCA Malawi II Partners with City Councils in $22M Land Revenue Initiative
The project will also introduce advanced technology for property evaluations, mapping, and record digitization, alongside new property management systems to enhance revenue collection efficiency.
LILONGWE, Malawi — In a significant move to modernise urban land management and boost revenue collection, the Millennium Challenge Account (MCA) Malawi II has signed a $22 million Implementing Entity Agreement (IEA) with four major city councils as part of its broader $44.1 million Increased Land Productivity Project, writes Ireen Kayira.
The agreement, signed Thursday in Lilongwe, brings together the city councils of Blantyre, Lilongwe, Mzuzu, and Zomba in a comprehensive three-year initiative aimed at transforming municipal revenue systems and enhancing urban development.
"We are excited that we have now signed the Implementing Entity Agreement with the four city councils, as well as the Malawi Local Government Association (MALGA) and the National Local Government Finance Committee," said Dr. Themba Chirwa, Director of the Increased Land Productivity Project at MCA Malawi II.
"This agreement marks a significant step in empowering city councils to deliver better public services."
The project is structured around two main components: land administration resourcing and institutions, working in partnership with the Ministry of Lands, and city council land-based revenue modernisation focusing on the four metropolitan areas.
According to Chirwa, the initiative encompasses four key areas of intervention. "First, we will address legal, regulatory, and procedural transformation, helping councils implement, amend, or draft bylaws necessary for reforms," he explained.
The project will also introduce advanced technology for property evaluations, mapping, and record digitization, alongside new property management systems to enhance revenue collection efficiency.
A crucial aspect of the program extends beyond mere revenue collection.
The third component focuses on budget and expenditure management, ensuring that collected revenues are effectively utilised within city boundaries.
The final element introduces social and behavioural change initiatives to strengthen the relationship between citizens and councils through improved transparency and accountability.
Lilongwe City Mayor Esther Sagawa, who also serves as MALGA President, welcomed the initiative as a potential game-changer for urban development.
"For a long time, there has been a vicious cycle where residents were reluctant to pay their city rates or ground rates because they felt they were not receiving adequate services," she said.
"However, with this project, we hope to break that cycle, particularly through the introduction of digitalized revenue systems."
Sagawa emphasised how digitalisation will revolutionise both revenue collection and public accountability.
"We will now be able to collect the money the city council is supposed to get and, more importantly, be transparent about how we are using it," she explained.
"Residents will be able to see what we are doing with the money they contribute, which will motivate them to comply with payments."
The Lilongwe City Council has already taken steps to increase community involvement in development initiatives through the Ward Development Fund, which channels locally collected revenues directly into community-based projects.
The initiative represents a shift from dependency on external funding to self-sustainability.
"What we want to achieve is to create property tax systems that can help councils generate revenue," Chirwa noted.
"It's not about always getting resources from development partners but how we help the councils stand on their own."
The IEA will serve as a guiding framework to ensure proper resource utilisation and implementation across all four city councils.
With this agreement in place, Malawi's major cities are poised to enter a new era of modernised land management and improved service delivery, potentially setting a model for urban development across the region.
As the project unfolds over the next three years, it promises to not only enhance municipal revenue collection but also rebuild trust between city councils and residents through improved service delivery and transparent financial management.