The capital of Malawi is Lilongwe. Bill and Melinda Gates Foundation (BMGF) are actively involved in the development of the city (Russell, 2008). The city council operation in the issue of informal settlements continues to occur in the state. When the BMGF understood that the city does not have the innovative plan to actually implement and bring the change in the state they discontinued their support. They asked the city to create a viable plan to help the people (Englund, 2002). The communities of Chinsapo and Mtandire are some of the encroachment areas. The city council actually was not able to draw a feasible plan even though there were some improvements in the state. This is not only because of the bad planning of the state it was also because of the implicit bias and existing systemic issues. The city council wants to have a symbolism that addresses the issue of urban poverty. Nevertheless lack of planning by the city council to convince the people had led to more issues than solutions (Place and Otsuka, 2001). There are the unrecognized informal areas that the council needs to address. In this effort the gaps between the people continued to increase with no real solution for the people. Owing to this the most important challenge is developing a proposition that would include all the people in the state.