Core area “Peaceful and inclusive societies” Promoting good financial governance
Low tax revenues and a high level of public debt are severely restricting the Malawian government’s financial scope to act. What is more, in addition to damaging the country financially, widespread corruption and the misappropriation of public funds are also causing the population to lose much of their trust in the government. In its long-term development strategy “Malawi 2063”, the government emphasises the importance of effectively managing public finances and increasing domestic revenues.
An important step is the introduction of a financial management and information system. This system will be used for planning, implementing and monitoring the budget and for reporting. In cooperation with the Malawian Ministry of Finance and Economic Affairs, the BMZ is supporting training courses for users of the IT system in ministries and official agencies.
Furthermore, GIZ is supporting the efforts of the Malawian tax authority to stop taxable profits from flowing out of Malawi. Digital registration of taxpayers and the proper collection of taxes owed will secure a rise in state revenues.
As at: 25/07/2023