Author(s): Visvanathan Naicker, Simon Nsengimana
This paper explores the effect of the COVID-19 pandemic on SMEs in Rwanda and how digital technology adoption can help SMEs recover the economy during and pos the pandemic. The COVID-19 pandemic has costed the lives of many people around the world. Measures have been taken to contain the pandemic's spread to minimize the rate of contamination and death including lockdowns, restriction of movements, and social distance. These measures paralyzed the supply chain and consequently created a global economic crisis. Subsequently, many Small and Medium Enterprises had to close in Rwanda. Simultaneously those SME’s who are surviving have reported a drop in revenues. It seems that SMEs are struggling to find a path to resist the COVID-19 impacts. Many do not have a contingency plan to recover their businesses during and post the pandemic. However, the adoption and use of digital technology in SMEs could be a sustainable economic recovery solution. Digital technologies provide a new window of opportunities for SMEs by increasing their visibility; attract new consumers, and embracing ecommerce that can be a solution to limit in-store shopping and personal physical contact as stipulated in the COVID-19 measures. A qualitative method using document analysis underpins this study. This study is significant because it seeks to adopt digital technology in Rwanda to assist SMEs to recover during and post the pandemic to save jobs, increase GDP, and tax collections.