The Capacity Foundation’s unique model – eventually to be able to raise all funds required from within Malawi itself – suddenly looks more relevant than ever now that western funding for NGOs working in places such as Malawi is drying up.
The UK Government’s decision to reduce overseas aid, along with Germany’s reduction in aid last year, pales in comparison to the demolition of USAID – hitherto the biggest western NGO – by President Trump’s administration. USAID gave $270 million to Malawi last year, a sum that simply can’t be replaced. To put the crisis in context: 40% of the Malawi Government’s spending budget comes from overseas aid.
Capacity has never relied on grants for its work, either from government or from grant-making NGOs. Capacity’s objective, to run social enterprises that fund our work among the forty villages in Malenga Mzoma, means Capacity won’t be directly affected by the crisis.
Right now, a third of Capacity’s spending in Malawi comes from our grocery and general goods store, Chanju, which is in Chintheche – a trading centre just a few miles from our area of work.
The Trustees have authorised purchase of a plot of land, for the equivalent of less than £3,000, in Mzuzu, a city about 40 miles from Malenga Mzoma. Mzuzu is the largest city in the northern region, with a population of over 220,000. We will be organising a capital appeal to build and stock the new shop, which we want to have open for business by the autumn.
Once on-stream, the two shops (Chanju Chintheche and Chanju Chiputula) are expected to fully fund the Foundation’s budget, which would be a great achievement. Our 10-year plan to achieve complete financial independence expires at the end of 2027, so the clock is ticking!