K1.3 trillion NGOs’ income safeguards economy

**By Jimmy Chazama: **

The 2026 NGO Sector Report 7th Edition has shown that non-governmental organisations (NGOs) generated K1.30 trillion in income compared to K1.02 trillion in 2025, confirming the sector’s growing role in Malawi’s economy.

The report says foreign currency accounted for K994.6 billion or 76.7 percent of income.

It further shows that the top 20 NGOs received half of the total income, while 79 percent of NGOs depend on a single donor, exposing them to risks when funding shifts.

The report also says jobs dropped sharply, with 22,440 paid employees in 2026 compared to 28,680 in 2025, despite salaries totalling K337.2 billion, including K72.8 billion in Pay As You Earn (Paye) tax remitted to the government.

It further says governance records remain weak, with 81 percent of NGOs not showing whether their boards are within mandate, and NGOs with lapsed mandates spending 116 percent of their income compared to 101 percent for those without end dates.

Speaking during the launch of the report in Lilongwe on Tuesday, NGO Regulatory Authority (Ngora) Chief Executive Officer Voice Mhone commended the income increase.

“This is a massive injection into the economy, almost rivaling the national budget,” Mhone said.

Minister of Gender, Children, Disability and Social Welfare Mary Navicha said the findings would help NGOs reflect on their strengths and weaknesses while the government appreciates their role in national development efforts.

“Almost 70 percent of our NGOs are complying with regulatory requirements, and almost 39 percent of women are being employed by NGOs in the country. This is another milestone we can celebrate because NGOs are creating opportunities for women and girls, including recent graduates,” Navicha said.

Navicha, however, acknowledged that employment had dropped by 7 percent but stressed that the government would continue working hand-in-hand with NGOs to strengthen systems and ensure that funds are used transparently for the intended beneficiaries.

“The money should be used for the purpose it is intended, not misused in the name of poor people. We will not allow that,” she said.

Navicha also pointed out grey areas in NGO governance, particularly the failure by many to disclose names of board members.

Meanwhile, Ngora Board Chairperson Bertha Phiri has said while challenges remain, compliance levels, of about 70 percent, show progress.

Phiri said the NGO sector had overtaken tobacco in forex earnings, making it a robust contributor to the economy.

“It entails that the NGO sector is one robust sector that perhaps gets neglected, but there is a lot of potential for economic growth. The report has also shown performance towards the Malawi 2063 enablers and pillars and, as such, the government needs to put more effort into supporting the sector,” she said.

She urged local NGOs to embrace compliance and social enterprise models to sustain themselves beyond donor funding.

The NGO Sector Report was introduced by Ngora in 2021 to consolidate audited financial statements, technical reports and compliance records from NGOs into one annual publication.