(5 minutes read)
· Zambian businesses are critically in need working capital, with 72 percent of businesses unable to raise funds, as revealed by a survey on the financial impact of COVID-19 on Micro and Small Enterprises (MSEs) conducted by FSD Zambia in collaboration with BFA
Global
· About 40 per cent of MSEs are seeing a significant decrease in revenues
· Zambian small and medium segment will be looking for options to help financial institutions increase working capital loans and expand on the Working Capital Access project to help these enterprises survive
Zambian businesses are critically in need working capital, with 72 percent of businesses unable to raise funds, as revealed by a survey on the financial impact of COVID-19 on Micro and Small Enterprises (MSEs) conducted by FSD Zambia in collaboration with BFA Global
According to the survey, the lowest income segments are particularly vulnerable to the economic impact of COVID-19 and the resulting economic slowdown. About 40 per cent of MSEs are seeing a significant decrease in revenues. The survey was also designed to assess MSE digital readiness as a method to limit the impact of COVID-19. A silver lining is that MSEs foresee continuing operations and are confident that their business revenue is enough for the same level of production and are optimistic about recovery.
The Zambian small and medium segment will be looking for options to help financial institutions increase working capital loans and expand on the Working Capital Access project to help these enterprises survive and thrive.
The first wave of the survey polled one hundred and seventy (170) self-employed, traders and other micro and small entrepreneurs. About 33% of the respondents were women and 67%, men with most in urban areas (71%) and the rest from peri-urban (28%) and rural (8%) areas.
Zambian Financial Sector Deepening Limited (FSD Zambia) is a Zambian organisation working closely with key players throughout the economy to ensure that all Zambians are financially
