Growth Investment Partners Zambia makes first investment
GIP Zambia has announced its first major investment in Boxpack Zambia.
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Growth Investment Partners (GIP) Zambia has announced its first major investment in Boxpack Zambia.
GIP Zambia was established by British International Investment (BII), Zambia’s National Pension Scheme Authority (NAPSA) and Swedfund to provide local currency capital to SMEs.
This inaugural investment is a $5 million, seven-year royalty funding which will enable Boxpack, a family-owned manufacturer of corrugated carton boxes and paper-based packaging materials, to acquire a new production line and triple its monthly output from 600 to 1,800 tonnes. This expansion will help meet Zambia’s growing packaging needs while reducing reliance on imported materials.
Zambia’s packaging industry is undergoing rapid transformation, with demand for carton box packaging growing annually. This growth is driven by urbanisation, population growth, the expansion of e-commerce, and new sustainability regulations favouring recyclable paper-based materials over plastic. However, local production capacity remains insufficient to meet the rising demand, forcing many businesses to rely on costly imports.
GIP Zambia’s royalty funding structure partly ties returns to Boxpack’s revenue performance rather than requiring full fixed-debt repayments or equity dilution. This allows the founding family to retain ownership and control while accessing growth capital. The facility includes a 12-month moratorium on principal repayments, giving the company time to implement the expansion before repayments commence.
Musonda Chipalo, CEO of GIP Zambia said: “We are pleased to partner with Boxpack to support its capacity expansion to meet growing local packaging demand. The royalty funding product is particularly suited to Boxpack and other companies that are growing rapidly and need flexible long-term growth funding with a debt service profile that tracks business growth.”
Dirk Holshausen, director for South Central Africa at BII commented: “This inaugural investment marks an important milestone for GIP Zambia and for BII’s commitment to unlocking growth for SMEs in Zambia. By supporting Boxpack’s expansion, we are helping to strengthen local manufacturing, reduce reliance on imports, and create jobs that drive inclusive economic development. Our partnership with NAPSA and Swedfund demonstrates the power of collaborative, patient capital to deliver long-term impact for businesses and communities.”
Muyangwa Muyangwa, director general of NAPSA said: “NAPSA is proud to partner with BII and Swedfund in delivering this first flexible loan under GIP Zambia. This $5 million investment in a local packaging manufacturer that has been operating since 2009 demonstrates the power of pension funds to stimulate real economic growth, support resilient Zambian enterprises, and create meaningful jobs for our people. As custodians of our members’ savings, we invest with both impact and responsibility, ensuring that every kwacha helps to build a stronger economy while safeguarding sustainable pension benefits. This milestone is a testament to how strategic, well-governed investments can transform industries and deliver long-term value for our members and the nation.”
Marie Aglert, chief investment officer of Swedfund added: “We are pleased to support GIP Zambia’s first investment in a strong, locally anchored supplier that plays an important role in Zambia’s agricultural and food value chains. Our commitment to GIP Zambia reflects Swedfund’s strategy to provide long-term, patient capital that addresses financing gaps for SMEs and enables sustainable growth, job creation and deeper local value chains.”
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