The Informal Financial Sector and Macroeconomic Adjustment in Malawi

"The aim of this study is to improve the understanding of the nature, size and role of the informal sector in Malawi. The study pursues the following interrelated objectives: to determine the origin and underlying reasons for the development of the informal financial sector side by side with the formal and semi formal financial sector. To ascertain behavioural traits of the participants in the informal financial sector in terms of savers, lenders and borrowers. The nature, terms and conditions of credit; and the purpose for which resources are saved or borrowed. To ascertain the size of the informal financial sector, and if possible the size of individual sub sectors within it, as well as future prospects for the informal financial sector."