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

Autores

Palavras-chave:

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

Resumo

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

Aker, J. C., & Mbiti, I. M. (2010). Mobile phones and economic development in Africa. Journal of Economic Perspectives, 24(3), 207-232

https://doi.org/10.1257/jep.24.3.207 DOI: https://doi.org/10.1257/jep.24.3.207

Angelucci, M., Karlan, D., & Zinman, J. (2015). Microcredit impacts: Evidence from a randomized microcredit program placement experiment by Compartamos Banco. American Economic Journal: Applied Economics, 7(1), 151-182

https://doi.org/10.1257/app.20130537 DOI: https://doi.org/10.1257/app.20130537

Augsburg, B., De Haas, R., Harmgart, H., & Meghir, C. (2015). The impacts of microcredit: Evidence from Bosnia and Herzegovina. American Economic Journal: Applied Economics, 7(1), 183-203. https://doi.org/10.1257/app.20130272 DOI: https://doi.org/10.1257/app.20130272

Banerjee, A., Duflo, E., Glennerster, R., & Kinnan, C. (2015). The miracle of microfinance? Evidence from a randomized evaluation. American Economic Journal: Applied Economics, 7(1), 22-53. https://doi.org/10.1257/app.20130533 DOI: https://doi.org/10.1257/app.20130533

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108 DOI: https://doi.org/10.1177/014920639101700108

Barry, T. A., & Tacneng, R. (2014). The impact of governance and institutional quality on MFI outreach and financial performance in Sub-Saharan Africa. World Development, 58, 1-20. https://doi.org/10.1016/j.worlddev.2013.12.006 DOI: https://doi.org/10.1016/j.worlddev.2013.12.006

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77-101. https://doi.org/10.1191/1478088706qp063oa DOI: https://doi.org/10.1191/1478088706qp063oa

Brune, L., Giné, X., Goldberg, J., & Yang, D. (2016). Facilitating savings for agriculture: Field experimental evidence from Malawi. Economic Development and Cultural Change, 64(2), 187-220. https://doi.org/10.1086/684014 DOI: https://doi.org/10.1086/684014

Chibbonta, D., & Chishimba, H. (2023). Effects of microfinance services on the livelihoods of marketeers in Zambia: A case of Matero Market in Lusaka. Cogent Social Sciences, 9(2), 2266922. https://doi.org/10.1080/23311886.2023.2266922 DOI: https://doi.org/10.1080/23311886.2023.2266922

Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, S95-S120. https://doi.org/10.1086/228943 DOI: https://doi.org/10.1086/228943

Crépon, B., Devoto, F., Duflo, E., & Parienté, W. (2015). Estimating the impact of microcredit on those who take it up: Evidence from a randomized experiment in Morocco. American Economic Journal: Applied Economics, 7(1), 123-150. https://doi.org/10.1257/app.20130535 DOI: https://doi.org/10.1257/app.20130535

Diamond, D. W. (1984). Financial intermediation and delegated monitoring. Review of Economic Studies, 51(3), 393-414. https://doi.org/10.2307/2297430 DOI: https://doi.org/10.2307/2297430

Dupas, P., & Robinson, J. (2013). Savings constraints and microenterprise development: Evidence from a field experiment in Kenya. American Economic Journal: Applied Economics, 5(1), 163-192. https://doi.org/10.1257/app.5.1.163 DOI: https://doi.org/10.1257/app.5.1.163

Jack, W., & Suri, T. (2014). Risk sharing and transaction costs: Evidence from Kenya's mobile money revolution. American Economic Review, 104(1), 183-223. https://doi.org/10.1257/aer.104.1.183 DOI: https://doi.org/10.1257/aer.104.1.183

Karlan, D., & Zinman, J. (2011). Microcredit in theory and practice: Using randomized credit scoring for impact evaluation. Science, 332(6035), 1278-1284. https://doi.org/10.1126/science.1200138 DOI: https://doi.org/10.1126/science.1200138

Karlan, D., Savonitto, B., Thuysbaert, B., & Udry, C. (2017). Impact of savings groups on the lives of the poor. Proceedings of the National Academy of Sciences, 114(12), 3079-3084. https://doi.org/10.1073/pnas.1611520114 DOI: https://doi.org/10.1073/pnas.1611520114

Meager, R. (2019). Understanding the average impact of microcredit expansions: A Bayesian hierarchical analysis of seven randomized experiments. American Economic Journal: Applied Economics, 11(1), 57-91. https://doi.org/10.1257/app.20170299 DOI: https://doi.org/10.1257/app.20170299

Moher, D., Liberati, A., Tetzlaff, J., Altman, D. G., & PRISMA Group. (2009). Preferred reporting items for systematic reviews and meta-analyses: The PRISMA statement. PLOS Medicine, 6(7), e1000097. https://doi.org/10.1371/journal.pmed.1000097 DOI: https://doi.org/10.1371/journal.pmed.1000097

Morduch, J. (1999). The microfinance promise. Journal of Economic Literature, 37(4), 1569-1614. https://doi.org/10.1257/jel.37.4.1569 DOI: https://doi.org/10.1257/jel.37.4.1569

Mwalupaso, G. E., Geng, X., & Yasin, S. I. (2025). Financial inclusion for sustainable agriculture: Pathways among smallholder women farmers in rural Zambia. PLOS ONE, 20(7), e0326980. https://doi.org/10.1371/journal.pone.0326980 DOI: https://doi.org/10.1371/journal.pone.0326980

Mwiya, B., Katai, M., Bwalya, J., Kayekesi, M., Kaonga, S., Kasanda, E., Munyonzwe, C., Kaulungombe, B., Sakala, E., Muyenga, A., & Mwenya, D. (2022). Examining the effects of electronic service quality on online banking customer satisfaction: Evidence from Zambia. Cogent Business & Management, 9(1), 2143017. https://doi.org/10.1080/23311975.2022.2143017 DOI: https://doi.org/10.1080/23311975.2022.2143017

Nyanzu, F., Peprah, J. A., & Ayayi, A. (2019). Regulation, outreach, and sustainability of microfinance institutions in Sub-Saharan Africa: A multilevel analysis. Journal of Small Business Management, 57(S2), 200-217. https://doi.org/10.1111/jsbm.12467 DOI: https://doi.org/10.1111/jsbm.12467

Okoye, N., & Siwale, J. (2017). Microfinance regulation and effective corporate governance in Nigeria and Zambia. International Journal of Law and Management, 59(1), 102-121. https://doi.org/10.1108/IJLMA-06-2016-0054 DOI: https://doi.org/10.1108/IJLMA-06-2016-0054

Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., McGuinness, L. A., … Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. BMJ, 372, n71. https://doi.org/10.1136/bmj.n71 DOI: https://doi.org/10.1136/bmj.n71

Pitt, M. M., & Khandker, S. R. (1998). The impact of group-based credit programs on poor households in Bangladesh: Does the gender of participants matter? Journal of Political Economy, 106(5), 958-996. https://doi.org/10.1086/250037 DOI: https://doi.org/10.1086/250037

Rousseau, D. M., Manning, J., & Denyer, D. (2008). Evidence in management and organizational science: Assembling the field's full weight of scientific knowledge through syntheses. Academy of Management Annals, 2(1), 475-515. https://doi.org/10.5465/19416520802211651 DOI: https://doi.org/10.5465/19416520802211651

Siwale, J. (2022). Digitising microfinance: On the route to losing the 'human touch'? Review of African Political Economy, 49(171), 123-141. https://doi.org/10.1080/13600818.2021.1998409 DOI: https://doi.org/10.1080/13600818.2021.1998409

Siwale, J., & Okoye, N. (2017). Microfinance regulation and social sustainability of microfinance institutions: The case of Nigeria and Zambia. Annals of Public and Cooperative Economics, 88(4), 611-632. https://doi.org/10.1111/apce.12165 DOI: https://doi.org/10.1111/apce.12165

Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333-339. https://doi.org/10.1016/j.jbusres.2019.07.039 DOI: https://doi.org/10.1016/j.jbusres.2019.07.039

Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review, 71(3), 393-410

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z DOI: https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

Torraco, R. J. (2005). Writing integrative literature reviews: Guidelines and examples. Human Resource Development Review, 4(3), 356-367. https://doi.org/10.1177/1534484305278283 DOI: https://doi.org/10.1177/1534484305278283

Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207-222. https://doi.org/10.1111/1467-8551.00375 DOI: https://doi.org/10.1111/1467-8551.00375

Wakunuma, K., Siwale, J., & Beck, R. (2019). Computing for social good: Supporting microfinance institutions in Zambia. Electronic Journal of Information Systems in Developing Countries, 85(3), e12090. https://doi.org/10.1002/isd2.12090 DOI: https://doi.org/10.1002/isd2.12090

Whittemore, R., & Knafl, K. (2005). The integrative review: Updated methodology. Journal of Advanced Nursing, 52(5), 546-553. https://doi.org/10.1111/j.1365-2648.2005.03621.x DOI: https://doi.org/10.1111/j.1365-2648.2005.03621.x

Publicado

2026-03-06

Como Citar

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

Edição

Vol. 7 N.º 1 (2026): Jan-Mar 2026

Secção

Articles
Copyright & Licensing

Direitos de Autor (c) 2026 Godfrey Nyoni, Austin Mwange

Creative Commons License

Este trabalho encontra-se publicado com a Creative Commons Atribuição-NãoComercial 4.0.

Crossref
Scopus
Google Scholar
Europe PMC

Artigos mais lidos do(s) mesmo(s) autor(es)