Malawi: World Bank Group Approves Grant Financing to Strengthen Local Governance and Improve Public Services

WASHINGTON, April 24, 2026 - Malawians across 32 district and municipal councils will benefit from expanded public services, opportunities for local jobs and improved service delivery and accountability. The new project will scale up performance-based grants (PBG) and strengthen financial resource management and multi-level governance to improve public services delivery in Malawi.

The $80 million International Development Association (IAD) grant to the Government of Malawi for the Governance to Enable Service Delivery Project (GESD 2.0), which build directly on the transformative gains of the first phase, will improve public services for citizens living across 28 district and 4 municipal local authorities, including Kasungu, Luchenza, Mangochi, and Karonga. The project will further institutionalize performance-based approaches within government systems, strengthen health, education, water, and infrastructure services for communities across Malawi, and generate local employment through expanded capital investment in districts.

GESD 2.0 will continue extending the PBG mechanism to local authorities that meet performance standards. These authorities will receive grants to finance priority investments, including classrooms, health facilities, water points, and community infrastructure. These investments, which will be functional, climate-resilient, and operationally sustainable, will also directly create jobs for local contractors, artisans, and construction workers in every district across the country. In addition, PBGs will now be harmonized with the Government's Reformed Constituency Development Fund (RCDF), creating a unified results-based framework that helps maximize development impact and strengthen government ownership of decentralization.

"GESD 2.0 is a testament to what is possible when government, citizens, and development partners commit to systemic reform and hold each other accountable for results. In just six years, Malawi's local authorities have improved their performance. That is not just a statistic; it means more children learning in better classrooms, more families receiving health care, and more communities with access to clean water," said Firas Raad, World Bank Group Country Manager for Malawi. "With this new investment, we are taking those gains to every corner of Malawi, while also creating jobs for contractors, builders, and professionals in every district. The World Bank Group is proud to stand with the people of Malawi towards more accountable and citizen-centered governance."

Additionally, GESD 2.0 will support professional development of personnel in local authorities and selected MDAs, equipping them with the skills needed to plan, manage, and account for public resources and to deliver quality services. This investment in human capital - spanning procurement, financial management, development planning, contract supervision, and sectoral oversight skills - will not only strengthen institutional performance but will also expand professional employment opportunities within Malawi's public sector at the local level.

GESD 2.0 will be implemented by the National Local Government Finance Committee (NLGFC), in close collaboration with the Ministry of Local Government and Rural Development (MoLGRD) and the Ministry of Finance, Economic Planning, and Decentralization (MoFEPD).

Contacts:

In Lilongwe: Henry Chimbali, (+265) 888 890 047, [email protected]

In Washington: Daniella van Leggelo-Padilla, (+202) 473-4989, [email protected]