Local councils are under pressure to prove that money collected from residents and businesses is translating into better services and visible development, amid growing concerns over revenue constraints and weak financial management.
The challenge comes as local authorities face growing public service demands while struggling with limited resources, inadequate infrastructure and staffing shortages.
NBS Bank has offered to help councils strengthen revenue collection and financial accountability through digital banking and payment solutions.
Speaking at the Malawi Local Government Association (MALGA) 20th Annual General Assembly in Blantyre earlier this week, the bank’s Chief Wholesale Banking Officer, Alfred Nhlema, said successful fiscal decentralisation should be measured by the transformation councils deliver rather than the resources they receive.
“The future of Malawi will not be determined merely by how much money we distribute to our councils, but by how much transformation our councils deliver with that money,” said Nhlema.
He said the bank was ready to explore digital revenue collection platforms, secure payment systems, responsible financing and cash management solutions to help councils improve their financial operations.
“We are not interested merely in banking the councils of Malawi. We want to help unlock the economies within those councils,” he said.
Minister of Natural Resources Patricia Wiskes said many councils continued to struggle with revenue constraints, staff shortages and inadequate infrastructure, making it difficult to meet growing public service demands.
“Several councils continue to face revenue constraints, staffing shortages, inadequate infrastructure and the growing demand for public services,” said Wiskes.
She said councils must demonstrate that public money was making a difference in people’s lives, stressing that Malawians expected tangible results from government spending.
“The people of Malawi expect to see the value of every kwacha that has been invested in our communities,” she said.
NBS Bank was a Platinum partner at the 20th annual assembly, which brought together local government representatives to discuss challenges and opportunities in improving service delivery.
