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

Abstract

The study was undertaken to assess the impact of COVID-19 (the pandemic) and the Russia Ukraine crisis on MSMEs in Malawi, the role regional integration plays in post pandemic recovery, and how technology and innovation are being leveraged by MSMEs to address the impacts of the pandemic and the Russia-Ukraine crisis. The basis of the study is a survey of 503 MSMEs which was conducted from 14th November to 22nd November 2022 across the three regions covering all the 28 districts and the cities of Blantyre, Lilongwe, Mzuzu, and Zomba. The 503 businesses were selected randomly to participate in a telephone survey where 107 businesses were closed at the time of the survey, and 396 businesses are operational. Most of the businesses are micro and small, operate in the service sector, and equally owned by men, women, the youth and the elderly. Over a quarter of the businesses were established in the last three years. The study therefore recommends supporting productive and competitive businesses and building capacity of the MSME sector to produce products for the export markets. Improving access to capital, uninterrupted electricity supply, and stabilising the Malawian Kwacha would enhance performance of the MSME sector. There is a requirement for a platform to disseminate information and studies about existing opportunities in regional markets and Africa to enhance integration of MSME sector.