Based on empirical data collected in the district of Mwanza, Malawi, this paper explores one particular dimension of the local impact of a refugee camp, namely the development of trading interactions between refugees and hosts, and seeks to identify the structural, policy and individual-based variables that determined the nature and extent of inter-community trade. It especially shows that a priori negative structural and policy factors, including shortcomings of the refugees' food basket, diversion of food relief, and a local economy dominated by the subsistence sector, gave rise to a flourishing trading system. Refugees' and hosts' trade accelerated the social stratification process within the camp while resulting in increased commoditization of exchanges at the local level. Refugee men with the longest duration of stay in Malawi, local women and villagers with access to wet land are shown to be the primary actors and beneficiaries of the development of the trading system. The potential victims of trading activities were refugee children and refugee women, but no such 'losers' were identified among the villagers. © 1994 Oxford University Press.

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social impact Malawi, Mwanza District trading system trade in food inter-community trade Malawi, Mwanza refugee camp Mozambican refugees developing country