BII and partners launch SME fund in Zambia
Growth Investment Partners Zambia has secured an initial fundraising close of $70 million.
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British International Investment (BII), Zambia’s National Pension Scheme Authority (NAPSA) and Swedfund today announced the launch of Growth Investment Partners Zambia (GIP Zambia). This investment company is designed to provide long-term, flexible capital, primarily in local currency, to small and medium-sized enterprises (SMEs) in Zambia.
GIP Zambia has secured an initial fundraising close of $70 million. With $37.5 million from BII alongside anchor commitments of $17.5 million from NAPSA and $15 million from Swedfund, GIP Zambia aims to address the persistent financing gap that has long constrained the growth of Zambia’s SME sector.
Over the next 15 years, GIP Zambia is expected to deploy more than $300 million to 150 SMEs. The platform will prioritise investments in sectors that drive economic growth, including manufacturing, agriculture and financial services.
Leslie Maasdorp, CEO of BII, said: “Zambia’s SME sector holds immense potential to drive inclusive growth and create jobs, but the right kind of capital remains elusive for many businesses. GIP Zambia builds on our experience of launching GIP Ghana and reflects our long-term commitment to building local financing ecosystems that work for SMEs and entrepreneurs. We believe this is how catalytic development finance should operate – working with domestic partners to mobilise capital, support entrepreneurs, and deliver real economic transformation.”
Shipango Muteto, chairperson of the NAPSA Board of Trustees commented: “The launch of GIP Zambia marks a significant milestone for NAPSA. This strategic partnership with BII and Swedfund allows us to channel much-needed patient capital into Zambia’s SMEs — the very backbone of our economy. We are confident that by supporting the growth of these local businesses, we will catalyse job creation and stimulate broader economic activity. For NAPSA, this is not just an investment; it is an imperative that directly contributes to growing our membership base, thereby strengthening the long-term sustainability of the pension fund and securing the future of our members.”
Marie Aglert, chief investment officer at Swedfund, commented: “Access to long-term financing is essential for SMEs to grow their businesses in Zambia and beyond. Through our investment in GIP Zambia, Swedfund sees an opportunity to provide local currency financing tailored to the needs of Zambian SMEs. This investment aligns with Swedfund's strategy to expand our presence in Zambia and across Southern Africa.”
Musonda Chipalo, CEO of GIP Zambia, added: "Zambian entrepreneurs are full of drive and creativity, but too many face the same obstacle: a lack of appropriate, long-term finance to grow their businesses sustainably. GIP Zambia is here to change that by providing long-term, flexible capital in local currency, designed around the real needs of local businesses. By mobilising domestic capital and working with international partners, we are driving inclusive growth and creating a stronger economy that truly works for Zambians.”
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