Livelihoods and the local economy

An informal local economy

Dzaleka’s economy includes retail shops, food stalls, tailoring, hairdressing, transport, repair work, mobile-money services, private education, construction trades, farming, arts, and community organisations. Business activity connects residents with nearby Malawian communities through employment, purchasing, land access, and trade.

The economy is largely informal. Malawi’s legal framework and encampment policy restrict movement and formal employment, while access to capital, documentation, electricity, stable internet, and larger markets can be limited.

Evidence about livelihoods

UNHCR’s 2017 socioeconomic assessment surveyed 802 refugee households in Dzaleka as part of a wider study of livelihoods, income, assets, food consumption, services, safety, and wellbeing. The dataset is useful historical evidence, but it should not be treated as a current census.

In August 2024, UNHCR reported that fewer than seven per cent of the camp population benefited from formal livelihood activities. At that time, programmes included crop and livestock production, insect farming, and enterprise development for refugee and host communities.

Training and enterprise support

Organisations including There Is Hope, JRS, UNHCR partners, and refugee-led groups have offered vocational training, enterprise development, agriculture, financial literacy, and digital skills. These programmes are significant but do not reach every household.

Digital work

Online work can provide access to clients beyond the camp. A 2024 UNHCR Innovation project with JRS and Konexio explored digital skills and labour platforms. Participants still faced expensive or unreliable connectivity, power interruptions, and employer concerns linked to nationality or location.

Relationship to assistance

Income and humanitarian assistance overlap. Food or cash transfers can be a household’s most reliable resource, while trade and casual work help cover needs that assistance does not meet. Funding cuts therefore affect both household consumption and the wider camp economy.