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Covid-19 chokes funding taps for Zambian businesses

05 Aug, 2020 - 00:08 0 Views

The Herald

LUSAKA. — A survey on the financial impact of Covid-19 on SMEs conducted by the Zambia Financial Sector Deepening and BFA Global show that Zambian businesses critically need working capital, with 72 percent of businesses unable to raise funds.

The research, which was aimed at understanding the economic situation from the perspective of MSEs, shows that about 40 percent of them are seeing a significant decrease in revenues.

The survey was also designed to assess Medium and Small Enterprises digital readiness as a method to limit the impact of Covid-19.

FSD Zambia chief executive Betty Wilkinson says the key issue of gaps in working capital is important and her organisation will be looking for options to help financial institutions grow working capital loans to help the enterprises survive and thrive.

“The key issue of gaps in working capital is important. So is the optimism and commitment of small firms to stay alive through the challenging Covid-19 period. FSD Zambia will be looking for options to help financial institutions grow working capital loans and expand our own Working Capital Access project to help these enterprises survive and thrive,” she said.

And FSD Zambia director analytics, Floyd Mwansa said assessing the impact of Covid-19 on MSEs is vital, as their survival is important to sustain the livelihood of most households.

This is according to a statement released by FSD Zambia head of communications Eneyah Phiri.

Phiri states that the research, which was aimed at understanding the economic situation from the perspective of MSEs, shows that about 40 percent of MSEs are seeing a significant decrease in revenues. — Lusakatimes

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