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

Abstract

The study examines the dual impact of the COVID-19 pandemic and the Russia-Ukraine crisis on micro, small, and medium-sized enterprises (MSMEs) in South Africa. These global events have exacerbated existing economic challenges, leading to significant disruptions in supply chains, reduced consumer demand, and increased operational costs. The findings reveal that MSMEs in South Africa have faced severe liquidity constraints, workforce reductions, and heightened uncertainty. Despite these challenges, the study identifies adaptive strategies employed by MSMEs, including digital transformation, diversification of supply sources, and innovative financial solutions. The analysis underscores the need for targeted policy interventions to support the resilience and recovery of MSMEs in the face of global crises1