Parliament Passes $80 Million IDA Bill to Boost Local Service Delivery

Malawi Parliament on Wednesday passed the International Development Association (IDA) Governance to Enable Service Delivery (GESD) Project Authorization and Ratification Bill, 2026.

The Bill authorizes Government to receive a grant equivalent to SDR 58,200,000 — about $80 million — from the International Development Association under a Financing Agreement signed on June 19, 2026.

Minister of Finance, Economic Planning and Decentralization, Joseph Mwanamvekha, who tabled the Bill, said the funding will directly improve how councils deliver services to citizens.

“This project is about strengthening efficiency in financial resource management and multi-level governance so that our district and municipal councils can deliver better services,” Mwanamvekha told Parliament.

“The performance-based grants ensure that councils are rewarded for transparency, accountability and results.”

Shadow Minister of Finance, Peter Dimba, supported the Bill, describing it as a “game changer” for local governance.

Dimba urged Government to increase the forex basket to enable councils to access materials and implement projects without delays.

The funding will finance Governance to Enable Service Delivery Project 2.0.

According to the Bill, Part 1 will provide performance-based grants to district councils that benefited under the previous GESD Project, which closed on June 30, 2026. For the first time, the grants will also be extended to four municipal councils: Karonga, Kasungu, Luchenza and Mangochi.

The Bill further provides that payments required under the Financing Agreement will be charged on the Consolidated Fund. It also exempts the funds from any tax, charge, restriction or limitation under any written law in Malawi.

Government says GESD 2.0 will build on the successes of the first phase by expanding the performance-based model to improve transparency and service delivery at council level.