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

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.