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

Abstract

The study was undertaken to assess the impact of COVID-19 and the Russia-Ukraine crisis on MSMEs in Angola, the role regional integration plays in post pandemic recovery, and how technology and innovation are being used by MSMEs to address the impacts of the pandemic and the Russia-Ukraine crisis. The basis of the study is a survey of 147 MSMEs across the provinces of Luanda, Huila and Huambo, but strongly concentrated in Luanda, capital city of Angola. Besides the overrepresentation of businesses in the capital, the sample reveals an under-representation of agricultural units, these are biases that were considered when the results of the study were analyzed. The study recommends supporting the transition from informal to formal status of economic units operating only on a domestic scale to activities integrated into regional value chains. More so, there is a need to strengthen institutional capacities of business associations as support structures for the activity of MSMEs and promote advocacy on the advantages for MSMEs to participate in SADC and AfCFTA. Additionally, it is critical to provide information on opportunities in regional and international markets. It is also important to note that these initiatives will only be sustainable if the country successfully faces the structural and cyclical economic challenges that persist.