By Burnett Munthali
LILONGWE — Financial constraints are making it difficult for some non-governmental organisations (NGOs) in Malawi to meet statutory reporting and other regulatory obligations, according to the Council for Non-Governmental Organisations in Malawi (Congoma).
Congoma chairperson George Jobe said some organisations are facing difficulties paying for auditing services, regulatory fees and other compliance-related costs, particularly after failing to secure fresh funding.
Jobe made the remarks following figures from the NGO Regulatory Authority (Ngora), which show that compliance with annual reporting requirements remains below 70 percent among active NGOs.
He said the low compliance rate should not automatically be interpreted as deliberate disregard for regulatory obligations.
“Separating the requirement for report submission to be done alongside annual payments could improve compliance,” Jobe said.
However, he acknowledged that some organisations have sufficient resources but still choose not to meet the requirements.
Ngora acting director of registration and compliance Patrick Mwale said 67 percent of about 1,000 active NGOs had submitted their annual reports for the year ending December 2025.
This means more than 300 organisations had not yet fulfilled the reporting requirement at the time of the latest assessment.
The compliance figures show a gradual improvement compared with previous years. The rate was 61 percent in 2025, while only 52 percent of active NGOs submitted their reports in 2024.
Compliance was considerably lower between 2016 and 2021, remaining below 45 percent. The highest rate recorded during that period was 43 percent in 2021, while 2016 registered just five percent.
Mwale said Ngora has taken steps against organisations that fail to comply, including advising key institutions and stakeholders against dealing with them.
These stakeholders include local councils, banks and the Malawi Revenue Authority.
He said the authority had previously relied on such measures rather than issuing fines, arguing that restrictions involving key institutions can significantly affect an organisation’s ability to operate.
Mwale, however, admitted that some NGOs have continued operating despite the measures.
Ngora is now preparing to publish a list of organisations that remain non-compliant, with the publication expected next month.
Governance analyst Benedicto Kondowe warned that prolonged failure to meet statutory requirements could undermine transparency and public trust in the NGO sector.
He called on Ngora to examine whether its enforcement mechanisms are achieving the desired results while also ensuring that NGOs receive adequate support to meet compliance requirements.
Under Malawi’s NGO legislation, organisations are expected to submit annual reports together with audited financial statements within six months after the end of their financial year.
Failure to comply attracts a K1 million fine, while Ngora has powers not to renew the licence of an organisation that fails to submit annual reports for three consecutive years.
The financial significance of the NGO sector is reflected in the 2025 NGO Sector Report, which showed that NGOs collectively recorded about K1 trillion in income.
The report further indicated that the 20 highest-funded organisations accounted for K587 billion of that income.
