Improving the resilience of SMEs in times of crisis: The impact of mobile money amid Covid-19 in Zambia.

This study investigates the impact of mobile money (MM) on SMEs' resilience and the associated business outcome in developing countries amid Covid-19. Despite the potential of MM to improve SMEs' resilience, little evidence has been documented. Using Enterprise Survey data in Zambia, we show that SMEs are more likely than large firms to experience catastrophic sales decline, reflecting their inherent vulnerability. Further analysis reveals that this unfavourable effect can be effectively counteracted when SMEs incorporate MM into daily business. An important policy implication is that the use of digital technologies should be a key element of policy responses to Covid-19.