Phiri vows K5bn CDF won’t be cut by a single kwacha — as Minister insists councils in control of their destiny

Malawi’s Local Government Minister has issued a defiant vow that the country’s controversial K5 billion Constituency Development Fund will remain untouched, flatly rejecting mounting calls from critics to slash the eye-watering allocation.

Ben Phiri told Parliament that development planning has now been fully handed over to local councils, insisting resources previously hoarded at the centre of government have finally been pushed down to the communities who need them most.

Speaking on Tuesday, the minister revealed the decentralisation process has entered a bold new phase, with councils no longer just handed responsibilities on paper, but now actually equipped with the financial firepower to deliver on them.

“Functions and sectors have been devolved to councils, but over a long period of time, resources were still kept at Capital Hill. This time around, resources are now back in the councils, leaving the central government just on advisory and policy-holder roles,” Phiri declared.

The minister described the shift as a fundamental departure from the old top-down system, insisting Malawi is finally moving away from government dictating what communities get, and towards a model driven entirely by what people on the ground actually want.

“It is, therefore, very important for people to accept the change that all development projects, unless capital ones, will be discussed at the council because development is no longer supply-driven, it is demand-driven, so what the people demand is what will come,” he said.

Phiri pointed to the construction of modern markets as a prime example of the new approach in action, insisting such projects would deliver a double win — improving trading conditions for ordinary Malawians while simultaneously boosting councils’ own locally generated revenue.

“The issue of markets is not only beneficial to the people, it is beneficial to the councils as well because they will be able now to collect local revenue on a structured and modern market,” he said.

Turning to the eye-watering K5 billion CDF allocation itself, Phiri moved to reassure sceptical MPs that implementation remains firmly on track, insisting government has beefed up councils with qualified staff and resources needed to actually deliver promised projects on the ground.

He revealed government has already released a 20 per cent mobilisation fee to contractors through the National Local Government Finance Committee, paving the way for construction work to begin as soon as procurement processes wrap up.

According to Phiri, several district councils have already reached advanced stages of procurement, with some opening bids while others finalise contract awards, offering a glimmer of hope that promised projects may finally start materialising on the ground.

The minister also revealed a major staffing shake-up, confirming government has for the first time posted qualified engineers and chief procurement officers to every single council in Malawi — a move he insists is crucial to improving both implementation and accountability around CDF spending.

“For the first time we have posted qualified engineers to all the councils in Malawi. We have as well posted chief procurement officers in all the councils. Those are key when it comes to implementation of CDF,” he said.

On the separate but equally contentious Malawi Economic Development Fund loan scheme, Phiri admitted government had been forced to step in after discovering the institution was applying overly strict commercial lending rules that left desperate beneficiaries waiting far too long to access their loans.

“We realised along the way that MEDEF were using stringent measures because they were using their own commercial forms and requirements,” he admitted, revealing relevant ministries have since engaged with MEDEF to bring its procedures in line with both government guidelines and the ruling DPP’s manifesto commitments.

But it was Phiri’s defiant stance on the CDF allocation itself that will likely dominate headlines, with the minister flatly refusing to entertain any suggestion of scaling back the controversial fund.

“The sentiment that we should reduce it is not acceptable. Development must be distributed evenly regardless of which political affiliation any member belongs to, and that amount remains MK5 billion,” he insisted.

Finally, addressing a separate but equally sensitive issue, Phiri revealed government is now reviewing the process for elevating traditional leaders, after some councils became so overcrowded with chiefs that available space in council chambers itself became a genuine problem.

He confirmed future elevations would be assessed on a strict case-by-case basis, in a bid to keep the entire system sustainable going forward.

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