Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In Malawi, the financing of basic education is largely decentralised. Resources for the education sector are distributed across five ministries, departments and agencies. The bulk of funding is channelled through Local Councils, which are responsible for teacher salaries and the operational costs of primary schools. The Ministry of Education manages a substantial share for secondary education, teacher training, development projects and operational expenses of its headquarters and agencies. Higher education institutions, including public universities and colleges, also receive a sizeable allocation, while smaller portions are directed to early childhood development under the Ministry of Gender, Community Development and Social Welfare, and to technical and vocational training through the Ministry of Labour.
Funding for the sector is divided between recurrent and development budgets. Recurrent expenditure largely covers teacher salaries and other operational costs, while development spending includes donor- and government-financed projects. Domestic sources remain the main contributor to education financing, although donor support continues to play a crucial role, especially for capital investments such as infrastructure.
Overall, education consistently receives the largest share of the national budget. However, the government’s contribution to domestic financing declines at higher levels of education. Primary education benefits from strong government support through the free primary education policy, while private households shoulder a greater burden of costs in secondary and tertiary education.
1. Education resources to subnational governments
Local Councils receive the largest share of devolved budgets for the education sector. They are responsible for complementary basic education, special needs education, procurement and maintenance of teaching and learning materials, school health and nutrition programmes, HIV/AIDS initiatives, development and approval of primary school improvement plans, and sports development. Most transfers to Local Councils are used to cover salaries and wages for primary school teachers, while the sector also accounts for a substantial portion of other recurrent transfers beyond personnel emoluments.
Intergovernmental Fiscal Transfer Formula (IGFTF)
The Intergovernmental Fiscal Transfer Formula (IGFTF), established in 2002, determines education allocations to Local Councils through five sub-formulas covering different educational components. The Leave Grants component is based on the number of primary school teachers. The Operations sub-formula combines the number of schools, pupil-to-teacher ratios, urban education infrastructure via utility bills, proportion of children under 14, and number of special needs centres. School Maintenance allocations are calculated using primary school enrolment, the number of government schools, and land area. The Teaching and Learning Materials component uses a topography index and student/school density to account for geographic accessibility. Special Needs Education funding is based on special needs enrolment and land area coverage. The formula has not been revised since its establishment, and current allocations are calculated using fixed annual increases from previous years.
Education Sector Policy & Investment Framework (PIF)
Before the introduction of the Intergovernmental Fiscal Transfer Formula (IGFTF) in 2002, the Education Sector Policy & Investment Framework (PIF), launched in 2000, guided planning and resource allocation within the education sector. Early decentralisation efforts provided budget transfers to districts to support local education activities, but these transfers were not guided by a comprehensive formula to ensure equity across schools or districts. The focus during this period was on improving planning, targeting resources, and establishing initial mechanisms for local-level financial support.
2. Education resources to schools
Inclusive Education, Gender and other Crosscutting Issues
The 2020-30 National Education Investment Plan includes a programme addressing inclusive education, gender, and other cross-cutting issues, with the majority of resources directed to primary schools. The programme targets learners with special educational needs, orphans, other vulnerable children, and girls. Key activities include the provision of menstrual hygiene management services in schools, training of staff in menstrual hygiene management, support for girls with sanitary materials, and the implementation of programmes focused on gender, girls’ education, and sexual and reproductive health.
Complementary Basic Education
The Complementary Basic Education (CBE) Programme is an accelerated learning initiative that provides education opportunities to out-of-school children aged 9–17 in rural districts. Launched in 2006 with strong support from donor agencies, the programme is now managed centrally by the Ministry of Education and funded through recurrent government allocations. Implementation occurs at the district level through Local Councils and non-governmental organisations, providing targeted learning opportunities for children who are otherwise excluded from the formal education system.
Hardship Allowances
Since 2018, the government has provided hardship allowances to support teacher availability and retention in very remote or hard-to-reach schools. Schools are categorised by remoteness based on factors such as the facilities available at the school, the distance to the nearest trading centre, and the amenities at that centre. The categories include most remote (Category A), remote (Category B), and not remote (Category C). Allowances are transferred directly to schools rather than to individual teachers.
3. Education resources to students and families
Secondary School Bursary Scheme
Since 2010, the Ministry of Education has implemented a secondary school bursary scheme, funded by the government and development partners, to support orphans and other vulnerable students in public secondary schools. The programme aims to increase access to and retention in secondary education, particularly for students at risk of dropping out due to the costs associated with schooling. The bursary covers school and examination fees, while students manage expenses for uniforms and other school items. Eligibility is based on need, prior school selection, good behaviour, and absence of other scholarships, with beneficiaries including girls, orphans, students from low-income households, and those with disabilities.
Secondary Education Trust Fund
Established in 2018 with support from UNICEF and private sector partners, the Secondary Education Trust Fund provides additional support for deprived children, particularly girls, to access secondary education. The fund covers school fees as well as uniforms, bags, sanitary pads, and stationery for both girls and boys. It operates alongside the government bursary scheme and complements existing efforts to reduce financial barriers to secondary education.
4. Social policies and family support programmes
Social Cash Transfer Programme
The Social Cash Transfer Programme (SCTP), locally known as Mtukula Pakhomo, is an unconditional cash transfer initiative managed by the Ministry of Gender, Community Development and Social Welfare since 2006. Operating in all districts, the programme targets the ultra-poor and labour-constrained households, with the overall goal of reducing poverty and vulnerability. Beneficiaries have flexibility in how they use the transfers, and evidence shows that funds are frequently spent on education-related expenses such as school fees, uniforms, and supplies.
The SCTP also aims to increase school enrolment and attendance among children in targeted households. The programme provides monthly transfers of MK 4,000 for single-member households, MK 5,000 for two-member households, MK 6,500 for three-member households, and MK 8,000 for households with four or more members. In addition, households receive school bonuses of MK 1,000 for each primary school-going child and MK 2,000 for each secondary school-going child, with annual verification exercises conducted to confirm school attendance.
Funding for the SCTP is primarily provided by donor agencies, with the government contributing 5% to its budget since 2016/17. The government’s funding mainly covers one district, while the remaining districts rely on donor support. The bulk of the budget is allocated to regular cash transfers for beneficiary households, with a smaller portion used for operational costs.
5. School meal programmes
Home-Grown School Feeding Programme
The Home-Grown School Feeding Programme, established in 1999, is managed by the Ministry of Education’s Department of School Health, Nutrition, and HIV/AIDS. The programme provides a daily hot meal to primary school students based on government-recommended menus, aiming to improve school enrolment, attendance, and children’s health and nutritional outcomes. Schools are selected for participation using geographic targeting informed by education performance indicators such as drop-out and repetition rates, poverty and vulnerability trends, food security and nutrition indicators, and existing coverage of school feeding initiatives. Implementation of the programme relies heavily on donor funding, with the Ministry of Education covering 1% of the budget. Selected schools may receive government-financed support through district councils, while most resources are provided by international donors.
This profile has been reviewed by Fatsani T. Kafumbu, Ubongo International.
