Economics Working Papers, 2026 (vol. 10), issue 5

Analysis of Micro, Small and Medium Enterprises characteristics and performance across Southern Africa: a cross-country comparative study

Duncan Chandabemba Ngwenya

Economics Working Papers 2026, 10(5):4-56 | DOI: 10.32725/ewp.2026.005  

This study examines Micro, Small, and Medium Enterprise (MSME) performance across Zimbabwe, South Africa, and Botswana using survey data from 1,161 businesses. The analysis focuses on owner income growth, employee salary structures, employment patterns, and access to financial assistance. The findings reveal substantial cross-country heterogeneity that challenges conventional assumptions about MSME financing. Zimbabwean MSME owners achieve the highest income growth (47.0 percent) despite having the smallest loan capacity (50,000 USD maximum), while Botswanan owners exhibit modest growth (8.0 percent) despite the largest loan capacity (1.11 million...