Article#23- Of Practical Insights-AI and MSMEs
By Victor PM Nyasulu
Today, Artificial Intelligence-AI must command our attention. Why? The future is here! We can no longer talk efficiency anymore in this world without AI. MSMEs in my view need AI the most because as I said earlier they have a slimmer margin of error if they want to scale!
The importance of MSMEs in Zambia cannot be over emphasized: they contribute a large share of employment and business activity. According to the MSME Implementation Plan (2023–2027), MSMEs are key drivers for poverty reduction, job creation, and wealth generation.
The significance of MSMEs notwithstanding, constraints remain, of course. Access to finance is a major challenge. The 2022 MSME Finance Survey by the Bank of Zambia (BoZ) highlights that many MSMEs struggle with affordable credit. Skill gaps persist including limited technology adoption, and issues with formalizing many micro and small businesses.
Zambia has a dedicated Ministry of Small and Medium Enterprise Development to support MSME growth. The Revised National MSME Policy (2023) defines MSMEs based on turnover, number of employees, and fixed investments. • There’s also an Implementation Plan (2023–2027) that outlines how to support MSMEs, including through technology and access to markets.
Some current Developments as regards AI and MSMEs in Zambia include:
1. Digital Tools & Platforms. Liquid Intelligent Technologies recently launched an SME Portal in Zambia. This portal bundles connectivity, cloud storage, collaboration tools, and digital services tailored for MSMEs. While not purely “AI,” providing SMEs with digital infrastructure is a foundational step that can enable more advanced AI-based services later (analytics, automation, etc).
2. AI in Decision-Making. Research from ZCAS University shows that Zambian businesses are beginning to use AI in strategic decision-making: forecasting, risk management, and customer-focused strategies. Challenges persist: high cost, limited local data, skill shortage, and weak regulatory/data ecosystems.
3. Machine Learning Case Study. A case study of MSMEs in Kalumbila (Zambia) shows how ML and AI could help with predictive/prescriptive analytics, improving operations and making businesses more sustainable. However, the study also notes resource constraints (financial, human), and the need for capacity building.
4. Ethical & Responsible AI. The Zambian government is increasingly talking about ethical use of AI, especially in customer service and marketing. This shows awareness that AI must be adopted responsibly, not just for efficiency but also trust and fairness.
5. Policy Commitment. In a recent policy reaffirmation, the government (via the Ministry of Small & Medium Enterprise Development) expressed commitment to building an inclusive, AI-driven digital economy. They mention ensuring MSMEs and cooperatives have access to digital infrastructure, skills, and tools to leverage AI.
Opportunities for MSMEs via AI. Here are some of the key ways AI could benefit MSMEs in Zambia:
1. Operational Efficiency: Automating repetitive tasks (e.g., customer service chatbots, invoice processing, inventory management).
2. Data-Driven Decisions: Using predictive analytics to forecast demand, plan inventory, allocate resources, or identify growth opportunities.
3. Customer Engagement: Personalized marketing, recommendation systems, or AI-powered customer support.
4. Financial Services: AI-driven credit scoring could help MSMEs get better access to financing by using alternative data.
5. Risk Management: AI can help detect fraud, optimize supply chains, and monitor business risks. With the right strategy, AI can empower MSMEs (even in rural areas) to access markets, finance, efficiency gains and weather forecasting for farmers. nce •
Napita mukwai!
The Author of VICTOR NYASULU Consult-VNc is also Partner at NS-CGMA +260 955 746 997. vpmn69@gmail.com
