This study forms part of the output of a consultancy on Social Development Funds in Zimbabwe and Malawi commissioned from Chr. Michelsen Institute by the African Development Bank. It describes, analyses and evaluates selected microprojects and microcredit schemes in Malawi from the perspective of Social Dimensions of Adjustment programming and poverty alleviation objectives. The study assesses the context and dimensions of poverty in Malawi, especially in its Poverty Alleviation Programme, in particular community based and microcredit components. It evaluates the design, implementation and performance of four recent microcredit schemes: the UNDP pilot microenterprise programme, the Small and Medium Enterprise Development Fund, microenterprise projects funded under the SDA pilot programme and the Malawi Mudzi Fund; and concludes with recommendations on possible forms of follow-up interventions by the ADB. Richard Moorsom is a historian and development policy researcher specialising on Namibia and southern Africa. A member of CMI's research staff since 1989, he is currently on leave of absence working as a research historian for the Waitangi Tribunal, Wellington, New Zealand. BMG Ltd., recently renamed Imani Development (Malawi), is one of Malawi's leading business and development consultancy firms. In recent years it has undertaken a wide range of assignments for the government and donor agencies, one area of focus being social policy and poverty issues.