Impact of COVID-19 and the Russia-Ukraine Crisis on Micro Small and Medium-Sized enterprises (MSMEs) in Namibia

Abstract

The Namibian administration has undertaken numerous endeavors to bolster MSME development in Namibia, encompassing fiscal aid schemes, tax alleviation, aptitude. enhancement projects and fostering digital technology utilization. Notwithstanding these predicaments, Namibia's MSMEs have demonstrated tenacity and pliability, occupying a vital function in the nation's economic resurgence. This current study aimed to evaluate the repercussions of the COVID-19 pandemic and the Russia-Ukraine crisis on Namibia's MSMEs, concentrating on technology and innovation, trade, and regional integration. The findings emphasize the challenges encountered by MSMEs, including GDP growth oscillations, trade deficits, and an elevated dependence on micro-enterprises. The COVID-19 pandemic and the Russia-Ukraine crisis further affected the economy, resulting in inflation, exchange rate fluctuations, and global trade disruptions. The study shows that Namibia's MSMEs are predominantly situated in urban zones, with the services sector being the most represented. Nevertheless, international trade remains a latent area for expansion. Workforce variations were contingent on the international trade engagement of enterprises, with import-centric businesses experiencing substantial revenue declines in 2020.