Additional Context: According to Devex's reporting, Malawi is scrambling to keep critical health, education, and development programs afloat after deep cuts to U.S. foreign aid exposed the country’s heavy reliance on donor funding.

The Malawian government has allocated $13.3 million in the 2025/2026 budget to mitigate the impact of aid cuts in the health sector and plans to recruit 6,000 health workers. Malawi has also increased pay-as-you-earn and value-added tax, introduced bank and mobile money transfer levies, and is considering pension and inheritance taxes, aiming to raise more than 2.323 trillion Malawian kwacha ($1.34 billion) through tax revenues.

Source: Devex