Emerging technologies: A double-edged sword for SME resilience in Southern Africa

Abstract

This study investigates the dual impact of emerging technologies on the resilience of Financial Sector Small to Medium Enterprises (FSSMEs) in Southern Africa, addressing both opportunities and challenges within volatile market conditions. Employing a qualitative methodology, the study involved semi-structured interviews and focus group discussions with 36 participants. The sample comprised of 30 FSSMEs strategic heads and 6 FSSMEs regulatory representatives sampled from Harare, Lusaka, and Mbabane drawn from a population of 3,890 registered FSSMEs. The findings revealed that technologies such as cloud computing, machine learning, and real-time data analytics extensively enhance operational efficiency, enabling FSSMEs to respond with agility to market dynamics. The use of emerging technology is still extensively limited among FSSMEs in the Southern Africa. The study identifies critical barriers to adopting emerging technologies including high integration costs, lack of structured digital transformation frameworks, and significant skills gaps among employees. The study underscores the necessity for tailored support systems and financial backing to facilitate effective technology integration. This study aims to inform policy and capacity-building initiatives that enhance the resilience and competitiveness of FSSMEs in an increasingly complex economic landscape.