Enhancing Road Infrastructure Financing in Malawi: A Comprehensive Analysis & Recommendations

Abstract

Purpose: This research study aims to critically analyze the effectiveness of Malawi’s road funding model, identify its strengths and weaknesses, and propose sustainable and innovative road funding model for improving road infrastructure financing in the country. Background: The inadequate state of road infrastructure in Malawi has hindered economic growth, connectivity, and social well-being. The existing road funding model faces challenges in generating sufficient funds for infrastructure development, maintenance, and rehabilitation. This study seeks to address these challenges and provide insights for a more effective and sustainable road financing approach. Methodology: A comprehensive mixed-methods approach was employed, combining qualitative and quantitative research techniques. Stakeholder perceptions were collected through surveys and interviews to assess the current road conditions and funding model’s performance. Budgetary evaluations and expert interviews were utilized to analyze the financial dynamics and governance aspects of road infrastructure financing in Malawi. Results: The evaluation of the road funding model highlighted a significant perception gap between desired and actual infrastructure quality, with stakeholders rating road conditions as poor. The research projected a substantial funding shortfall of US$3.5 Billion by 2037, equivalent to 28% of Malawi’s GDP, due to growing demand and inadequate financing. Despite efficient revenue collection mechanisms, the model struggled to meet infrastructure development needs. Given the critical findings of this study, the study recommends the integration of Public – Private Partnership (PPPs) to leverage private investment thereby reducing the fiscal burden on the government. Additionally, introducing a dedicated road fund sourced from multiple revenue streams such as fuel taxes, road tolls, and international donor funds could diversify and stabilize funding sources. A governance oversight committee comprising financial experts, policymakers, and community representatives should be instituted to ensure transparency and effectiveness in fund allocation and utilization