NGOs Receive Record K589 Billion as Reporting Improves
Overall, the report shows a growing, crucial NGO sector that brings significant revenue and employment, but grapples with compliance, financial sustainability, and distribution of activities.
LILONGWE, Malawi - Non-governmental organizations (NGOs) in Malawi received a record total of K589 billion in the 2021/22 financial year, according to the newly-released 2023 NGO Sector Report, writes Winston Mwale.
The report, released by the Non-Governmental Organization Regulatory Authority (NGORA), found this 41% increase in total funding received by NGOs was the highest amount on record.
Total NGO expenditures also grew to K580 billion, according to the report.
This significant growth in funding comes as the report shows NGO compliance with reporting hit a new high, reaching 61% of organizations expected to report.
That's up from just 25% compliance in 2018.
To improve transparency, the regulator issued warning letters to delinquent organizations last year and made clear repeated failures to report could result in deregistration.
NGORA also directly engaged NGO boards to emphasize changes in the law and consequences of noncompliance.
The new data provides valuable insights into how funds were distributed across sectors.
According to the report, the health sector received the largest share of funding at 17% of total NGO expenditures. Education came in second at 16%.
At the individual level, the report found World Vision International reported the highest income of any NGO at 53 billion kwacha.
And the top 20 organizations received a combined total of 334 billion kwacha, or 57% of the sector's funding.
However, the report notes some challenges remain.
Delays in developing District Development Plans have made it difficult for NGOs to properly align interventions at local levels, according to the report.
Economic headwinds like currency depreciation also impacted NGO budgets. And natural disasters disrupted project implementation in some areas.
“The NGO sector is crucial to Malawi as a country as it strives to create an equitable and just society. It is, therefore, my hope that this report will serve as a valuable resource for stakeholders, policy makers, donors and the public in fostering a deeper understanding of the role of this crucial sector,” said Roselyn Makhumula, Secretary to the Ministry of Gender, Community Development and Social Welfare.
Looking ahead, the regulator hopes to see even higher compliance rates to fully understand the sector's contributions.
The report also recommends enhancing coordination between NGOs and local authorities.
“The 2023 NGO sector report addresses the public’s need for quality NGO information and provides the government with the necessary information on NGO activities to enhance informed decision making. The information also gives the public and donor community a chance to understand the contributions NGOs are making in the development of the country and thus promote public trust and confidence in the sector,” said Edward Chileka-Banda, Chief Executive Officer of NGORA.
If challenges are addressed and transparency improves, the tremendous potential for NGOs to contribute to national development goals could be realized, according to the conclusions of the 2023 NGO Sector Report.
Here are the key points summarized from the 2023 NGO Sector Report:
Registration and Compliance
77 new NGOs registered in 2023, a 64% increase from 2022
Cumulative total of 941 registered NGOs (736 local, 205 international)
61% of expected NGOs (432 out of 706) complied by submitting annual reports
Revenue and Funding
Total NGO sector revenue was Mwk 589 billion ($416 million), a 41% increase
At least Mwk 473 billion received was in foreign currency (approx $200 million in US dollars)
Health sector received highest amount of funding (Mwk 213 billion)
Sectors and Service Delivery
Health remained the top sector for NGOs (17% of activities), followed by education (16%)
NGOs focused service delivery on WASH facilities, disaster response, education, health services
Employment
NGOs employed total 29,196 people, with 21,273 as paid Malawian staff (33% increase)
Number of volunteers decreased compared to prior years
NGORA Operations
Drafted several regulations to guide amended NGO law
Revenue highly dependent on government subventions, faces funding shortfalls
Key challenges in monitoring NGO activities on the ground
Overall, the report shows a growing, crucial NGO sector that brings significant revenue and employment, but grapples with compliance, financial sustainability, and distribution of activities.
Health, education and agriculture see the most NGO involvement.
The full report is available for free download below.
