Malawi—Public Finance Management Reforms (Chuma Cha Dziko)

Advancing public financial management in Malawi is a complex process that requires keen understanding of how change happens within this context—the political economy, key stakeholders and their priorities, and the interrelated and systemic technical bottlenecks.

Under “Chuma Cha Dziko,” or “National Economy,” DAI works with the Government of Malawi, the Ministry of Finance, Economic Planning, and Development, and other stakeholders to achieve efficient and effective use of public resources and support the growth of the economy and development of Malawi.

In the wake of the 2014 corruption scandal known as “Cashgate,” Chuma Cha Dziko has been designed to reform public financial management in Malawi. Strengthening government systems and capabilities in public finance, internal control, and public procurement, and having in place a coherent and effective tax policy regime are critical in supporting the government to improve public investments and services. Changing behaviors and established norms is an important part of this initiative.

Since 2014, the Government of Malawi has continuously reiterated its commitment to develop a strong public finance system and demonstrate accountability to its electorate, and the European Union is supporting the country to improve its management of public finances. Since the scandal, the EU and the Malawian Government have agreed on a roadmap to reinstating budget support. Chuma Cha Dziko contributes to Malawi’s ability to respond to the requirements set out in the roadmap.

Sample Activities

• Work with Ministry of Finance, Economic Planning, and Development’s Public Finance Management System Division to oversee and deliver public finance reforms, support change management, and work across the project’s components to tackle complex delivery bottlenecks.
• Apply behavior change and problem-driven approaches to drive forward tangible results.
• Work with stakeholders in the Malawi public procurement system to improve transparency and accountability.