Microcredit versus microsavings for MSME resilience in Lusaka, Zambia: A mechanism-based synthesis and managerial playbook

https://doi.org/10.51867/ajernet.7.1.81

Auteurs

Mots-clés :

Digital Finance, Lusaka, Microcredit, Microsavings, MSMEs, Microfinance Strategy, Savings Groups

Résumé

Micro, Small, and Medium Enterprises (MSMEs) in Lusaka operate in a high-volatility environment characterised by irregular demand, limited insurance, and frequent liquidity shocks. Microcredit is often promoted as the primary financial instrument for entrepreneurial growth; however, the wider evidence base indicates that microsavings and savings groups frequently provide more reliable gains in resilience and investment readiness, particularly where credit is costly or poorly aligned to cash-flow cycles. This paper develops a mechanism-based comparison of microcredit and microsavings for MSME resilience in Lusaka and comparable Zambian contexts, focusing on how each instrument affects capital accumulation and productive investment, risk management and income smoothing, behavioural discipline and time-consistent planning, and the operational sustainability of providers. The synthesis indicates that microcredit can accelerate investment and business activity for well-matched borrowers, but average performance gains are often modest and highly heterogeneous. Microsavings and savings groups more consistently strengthen liquidity buffers, improve cash management, and enhance preparedness for growth. Conclusion: A resilience-orientated inclusion strategy for Lusaka’s MSMEs should treat savings as the default foundation and deploy credit selectively as an investment accelerant when a clear payback opportunity exists. Recommendations: MFIs and MSME support programmes should: sequence products by building savings histories before larger loans, align repayment schedules to cash-flow cycles, integrate low-cost digital rails for payments and collections while protecting trust and service quality, and strengthen governance and client-protection practices to reduce debt cycling and improve long-run enterprise survival.

Dimensions

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Publiée

2026-03-06

Comment citer

Nyoni, G., & Mwange, A. (2026). Microcredit versus microsavings for MSME resilience in Lusaka, Zambia: A mechanism-based synthesis and managerial playbook. African Journal of Empirical Research, 7(1), 950–958. https://doi.org/10.51867/ajernet.7.1.81

Numéro

Vol. 7 No 1 (2026): Jan-Mar 2026

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(c) Tous droits réservés Godfrey Nyoni, Austin Mwange 2026

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Ce travail est disponible sous licence Creative Commons Attribution - Pas d’Utilisation Commerciale 4.0 International.

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