The role of the informal sector in poverty reduction and the food security in Malawi: A case study of Lufita in Chitipa RDP

This paper reports on a study focused on the role of the informal sector in poverty reduction and food security in Malawi. Most previous studies have focused on the formal sector activities in terms of understanding poverty reduction and food security in the country. As such, little has been understood on the scope and contribution of the informal sector in poverty reduction and food security. This study aims to bridge this gap.

The study was conducted in Karonga Agricultural Development Division in Malawi. A total of 60 respondents were randomly selected for data collection using a structured and pre- tested questionnaire. The collected data was analysed and results presented through descriptive statistics. The specific objectives of the study were:

• to assess the contribution that small-scale enterprises make to household food security and poverty reduction
• to examine the main sources of capital and to document the kinds of business run by men and women
• to assess the structure of the expenditure of income from small-scale entrepreneurs
• to determine the constraints and opportunities in this sub-sector
• to make recommendations on the viability and sustainability of the development of the informal sector.

Key findings include the need for the government to support additional Income-Generation Activities (IGAs) that support agricultural productivity and thereby help sustain household food security and reduced poverty levels.