61 Percent of SMEs In Kenya Optimistic About Recovery

By Soko Directory Team / Published June 29, 2021 | 10:37 am




KEY POINTS

After facing unprecedented changes in the wake of the COVID-19 pandemic, Small and Medium Enterprise (SME)  confidence in Kenya is on the rise, according to the latest research by Mastercard.


Money Market Funds

After facing unprecedented changes in the wake of the COVID-19 pandemic, Small and Medium Enterprise (SME)  confidence in Kenya is on the rise, according to the latest research by Mastercard.

The inaugural Mastercard Middle East and Africa (MEA) SME Confidence Index found that 62% of SMEs in Africa are optimistic about the next 12 months, and 61% of SMEs in Kenya are seeing positive signs of recovery.

Access to funding and digitalization key for future growth

As Kenya gradually begins staging its economic recovery, small and medium-sized businesses in the country have identified easier access to funding (73%), acceptance of digital payments, better data and insights, and digitizing business operations (72%) as the top three drivers for growth.

This highlights opportunities that arise from both internal transformations as well as industry regulations and trends.

Making sure that SMEs have all the support they need to go digital and grow digital is a key focus for Mastercard. The company works closely with various stakeholders including the government and banking institutions to create opportunities for SMEs, which represent 98% of all businesses in Kenya.

Mastercard has pledged $250 million and committed to connecting 50 million micro, small and medium-sized businesses to the digital economy by 2025 using its technology, network, expertise, and resources in support of the company’s goal of building a more sustainable and inclusive digital economy.

For many small businesses, reducing their dependence on cash through digital payments acceptance, has played a major factor in being able to get paid and maintain revenues.

“SMEs have been among those hit hardest by the pandemic, and Mastercard is dedicated to continuing support to this sector, especially in terms of connections to the digital payments acceptance tools, insights, and cybersecurity tech solutions they need. Although challenges remain, the SME Confidence Index provides a helpful overview for all stakeholders on what we can do to grow the contribution of this sector in Kenya.

It is very encouraging to see that the three Ds – data, digital payments, and digitized operations – are already actively in play among SMEs in Kenya as they position themselves for multi-dimensional recovery and growth,” said Shehryar Ali, Country Manager, East Africa, Mastercard.

The cost of business a key concern, whilst public and private partnerships seen as an engine for growth

When asked about the main thing that keeps them up at night, 49% of SMEs in Kenya mentioned the challenge to maintain and grow their business was their top issue. Looking at concerns over the next 12 months, almost three-quarters (73%) identified the rising cost of doing business, while 44% cited access to capital. Private sector partnerships (61%) and government-led initiatives (40%) were identified as having the biggest potential to positively impact SMEs and the wider Kenyan market.

“As SMEs in Kenya begin their path to recovery in a post-Covid world, their key concern is access to funding in order to maintain and grow their business. This can be achieved by leveraging the digital economy to drive greater inclusion by easing barriers to financial services. At Mastercard, we are committed to connecting businesses to the digital economy by working with partners to provide digital solutions and technology that will enable them to improve their operational efficiency, diversify their revenue and grow their businesses,” added Shehryar Ali.

As consumer trends evolve in a post-pandemic world, businesses must adapt and prepare for the future. Mastercard’s Economic Outlook 2021 estimated that 20-30% of the Covid-19 related surge in e-commerce would be a permanent trend in the share of overall retail spending globally. Furthermore, recent studies from Mastercard showed that 79% of Kenyan consumers are shopping more online than they did since the start of the pandemic and 99% of Kenyan shoppers would consider making a purchase with an emerging payment technology over the next year.




About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2023
  • January 2023 (180)
  • 2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (359)
  • April 2022 (294)
  • May 2022 (271)
  • June 2022 (232)
  • July 2022 (278)
  • August 2022 (253)
  • September 2022 (246)
  • October 2022 (196)
  • November 2022 (232)
  • December 2022 (166)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (273)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950