As we celebrate the Day of the African Child in Malawi, we are reminded of the immense potential that lies within our youngest citizens. With more than half of the population under the age of 18, it is clear that the investments we make in our children’s lives today will profoundly impact the resilience and economic strength of our country, not just for today but for decades to come.
When a nation neglects to allocate sufficient resources to children, it undermines long-term development. Investment in children is not a cost – it is the most potent driver of economic growth, social equity, and national resilience.
Encouragingly, the national dialogues around child-centered investment are gaining momentum. Recent budget discussions have highlighted a growing awareness of the need to prioritize children’s wellbeing. The proportion of the government budget allocated to essential social services is set to increase from 31 per cent in 2024/25 to 33.4 per cent in 2025/26. Despite the ever-tightening fiscal space, this demonstrates the government’s unwavering commitment to protecting investments in human capital.
Among the key social sectors, education receives the largest allocation, at 16.6 per cent of the total budget in 2025/26 (up from 14.8 per cent in 2024/25), followed by health (9.5 per cent, up from 9.2 per cent), social protection (3.8 per cent up from 3.7 per cent), and water and sanitation (3.5 per cent up from 3.4 per cent).
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However, with just over a quarter of the budget allocated for public debt service costs (27 per cent), available spending for social sectors is under pressure, with worrying implications for service delivery to children. For instance, the allocation to public debt servicing remains the largest expenditure item in the national budget for the fourth consecutive year, and over the past two fiscal years, the government has spent more on servicing public debt than on education and health combined.
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Countries that underinvest in children, particularly in early education, nutrition, and healthcare, miss out on a generational opportunity for sustainable development and inclusive growth.
Malawi is facing significant economic challenges that have made life harder for many families. The real value of household income has decreased, resulting in deeper poverty and increased inequality. By the end of 2025, it’s estimated that approximately 75.4 per cent of the population (15.8 million people) will be living below the new international poverty line of US$ 3 (Malawian Kwacha 5,253) per day, which is one of the highest poverty rates in the world. Additionally, the number of children experiencing multiple hardships has increased from 60.5 per cent in 2016/17 to 69.6 per cent in 2019/20. Addressing this complex situation is not just about spending more – it’s about investing strategically, ensuring resources reach the children and communities who need them most. It’s a chain reaction, starting with quality early childhood programmes that lead to better school performance, improved health outcomes, higher earning potential, and a more engaged citizenry in adulthood. A child who is well-nourished, emotionally supported, healthy, included and educated grows into an adult who contributes meaningfully to society and drives economic growth.
Even for those who are deemed the most economically vulnerable, evidence from Malawi’s National Social Cash Transfer Programme shows that recipients can use the cash transfers productively to generate a multiplier of 2.94, meaning each Malawian Kwacha transferred leads to an increase in overall spending of 2.94 Malawian Kwacha.
To achieve the vision of Malawi 2063, investing in children’s health, education, and protection is not just important – it is essential. It is a collective duty. With bold and carefully considered policy adaptations regarding the macroeconomic environment, improvements in the effectiveness of public expenditures, and ensuring adequate social sector investments alongside the productive sectors of agriculture, tourism, mining, and manufacturing, there is great potential for sustainable, inclusive economic growth.
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This economic future does not have to be a distant reality, but one that can be shaped today in classrooms, clinics, and communities across Malawi. Nations that lead in global competitiveness consistently prioritize spending on children. Investing in the next generation is not just a moral imperative; it is one of the smartest investments we can make.
