A Small-Scale Entrepreneur consultant has charged that the continued skyrocketing of the kwacha will force Small and Medium Enterprises (SMEs) to close their businesses if they do not operate with uttermost financial knowledge.

In an interview with Money FM News, Dr Windu Matoka says the continued downward movement of the kwacha demands that SMEs pay more for their exports while selling to a financially frustrated clientele.

Dr Matoka added that the skyrocketing of the kwacha will further demand that SMEs incur more production costs but produce in small quantities while their competitors will enjoy a bulky production and larger market.

And Dr Matoka has also cautioned SMEs to wisely determine the right time to increase their production of products in order to avoid losses.

The consultant is of the view that SMEs face stiff competition from bigger companies that buy their products cheaply in China, and flood a financially frustrated market with cheaper products.

He summed that the skyrocketing of the kwacha will consequently cripple most families financially thereby increasing the number of the urban poor.

The Kwacha has of late been performing poorly against major convertible currencies, trading at thirteen kwacha, seventy seven ngwee.