An Assessment of the Effectiveness of the Bank of Zambia COVID-19 Stimulus Package on SME Performance

Bertha Chaliyumbe; Lubinda  Haabazoka

doi:10.59413/ajocs/v6.i3.2

Authors

Bertha Chaliyumbe University of Zambia Author
Dr. Lubinda Haabazoka Graduate School of Business, University of Zambia, Lusaka, Zambia Author https://orcid.org/0000-0003-4055-2531

DOI:

https://doi.org/10.59413/ajocs/v6.i3.2

Keywords:

Covid 19, Bank of Zambia, SME Performance, Targeted Medium Term Funding, Gross Revenue, Net profit, Employment rate

Abstract

The COVID-19 pandemic caused significant disruptions to the global economy, with SMEs in Zambia among the hardest hit sectors. SMEs, which contribute over 70% to Zambia’s GDP, faced closures and income losses due to lockdowns and market contractions. In response, the Bank of Zambia (BoZ) launched a ZMW 10 billion COVID-19 Targeted Medium-Term Refinancing Facility (TMRF) to enhance liquidity and support business continuity. This study assessed the effectiveness of the package by analysing its impact on SMEs' gross revenue, net profit, and employment levels. Using a descriptive research design and hierarchical regression analysis, the findings revealed a statistically significant positive impact across all three performance indicators. The study underscores the need for enhanced accessibility, transparent processes, and adaptive program design to strengthen SME resilience during economic crises.

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