Managing in the Informal Economy: The Informal Financial Sector in Tanzania

ABSTRACT

To a certain extent, the informal economy flourishes by filling the gap left by formal institutions. This is most vividly illustrated where practical management of informal financial service delivery rests on the need for such as a means to an end in the absence of an effective, well-oiled and regulated financial sector. In this paper, we draw on previous work on managing in the informal economy, to highlight the challenges inherent in Tanzania and illustrate the role played by informal financial services across the board. It is apparent in the final analysis that, what really matters revolves around new ways of economic organization, thanks to technology and institutional set-ups, as evidenced in the case of the informal financial sector in Tanzania.

KEYWORDS:

• informal sector
• informal financial groups
• Tanzania
• Ujamaa

Notes on Contributor

Dr. Peter C. Mhando is an accomplished economics, finance and management professional with cross-functional expertise, a seasoned research analyst and a development navigator. His research interests focus on 21st century development in emerging economies of the Global South. He is particularly interested in the practical operational and policy contexts, the socioeconomic environment as well as people, organizations and systems, and the use of analytical tools to augment knowledge, skills and technical know-how in execution. Dr. Mhando is on the faculty of the Risk Management Department, Smeal College of Business at the Pennsylvania State University in Pennsylvania, USA.

Notes

1 Detailed report at http://www.fsdt.or.tz/wp-content/uploads/2017/09/FinScope-Tanzania-2017-Insights-that-Drive-Innovation.pdf

2 African proverb.