A little background is in order for a better appreciation of the context. During the 1970s and 1980s the Malawi economy grew at a fast pace as a result of the development of much of the economic infrastructure we see today as well as the tremendous growth in the agricultural sector.
Economic infrastructure was financed largely by increasing donor aid, but government augmented that by issuing long-term domestic bonds – Local Registered Stocks (LRS). Government bond issuance was made possible by relative macroeconomic stability achieved through fixed exchange rate regimes supported by strict exchange controls.