Impact of COVID-19 and the Russia-Ukraine crisis on micro small and medium -sized enterprises (MSMEs) in Eswatini

Abstract

The economic ramifications of the COVID-19 pandemic were significant and are still being felt in most parts of the globe. What started off as a health crisis quickly mutated into an economic crisis which forced governments to restrict human movement and contact, consequently halting business operations to a devastating effect. Studies conducted in the African context with a focus on Micro, Small and Medium Enterprises (MSMEs) have mostly concluded that the pandemic had highly significant negative impacts on business operations with extensive financial consequences. These conclusions are true in the Eswatini context, with studies conducted at national level revealing that the disruptions caused by the pandemic had major impact on businesses. This current study has revealed that 84% of enterprises reported to have been negatively impacted by the pandemic, with as much as 34% having to stop operating as a result. This study was conducted with the backdrop of the context with a view to understand the extent of the impacts of these two crises on the MSME sector in Eswatini, and the response thereof, particularly in terms of technology uptake, and regional integration and trade. In view of the findings, the study presents three recommendations for government and other key stakeholders within the MSME space. These are: Facilitate increased exposure of MSMEs to technology; Capacitate MSMEs regarding international trade agreements and access to regional markets; Review the MSME policy and general regulatory framework.