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.