Techbytes: Liquid Zambia pushes SMEs towards digital transformation

Liquid Intelligent Technologies Zambia says digital transformation is becoming increasingly important for the survival and growth of small businesses as SMEs continue to face financing, compliance and cybersecurity challenges.

Company Chief Business Officer, Bernadette Mofya, said SMEs make up about 97 percent of businesses in Zambia, contribute nearly 70 percent to the country’s gross domestic product and account for close to 88 percent of employment opportunities.

Despite their economic contribution, she said many SMEs continue to face challenges including limited access to finance, digital skills shortages, cyber security risks and regulatory compliance difficulties.

In her essay on “Turning digital barriers into growth opportunities for Zambian SMEs,” she said digital transformation could help businesses improve efficiency and reduce operating costs, noting that cloud-based services and bundled connectivity solutions were becoming more affordable.

“Shifting from on-site hardware systems to cloud-hosted platforms can lower maintenance costs and allow businesses to focus more on expansion,” according to Mofya.

On financing, she said many SMEs struggle to access formal credit because of high interest rates and collateral requirements.

Mofya noted that government-backed programmes through the Ministry of Small and Medium Enterprise Development and the Citizen Economic Empowerment Commission were helping address financing challenges for SMEs.

She also encouraged businesses to strengthen their digital presence, saying many local enterprises still depend heavily on walk-in customers and word-of-mouth marketing.

“Digital platforms and social media have enabled some businesses to reach wider markets and compete more effectively,” Mofya said.

She further urged SMEs to invest in skills such as digital marketing, data analytics and generative artificial intelligence.

On cyber security, Mofya warned that SMEs were increasingly targeted by cybercriminals because they often operated with weaker security systems despite holding sensitive customer and financial data.

She advised businesses to strengthen password protection, regularly update software systems and train employees to identify cyber threats such as phishing attacks.

Mofya added that initiatives such as the SMART Zambia Institute and ZamPortal were helping simplify regulatory compliance through digital services.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.