In a landmark move to strengthen Zambia’s small and medium-sized enterprise (SME) sector, British International Investment (BII), the National Pension Scheme Authority (NAPSA), and Swedfund have jointly announced the launch of Growth Investment Partners Zambia (GIP Zambia). This newly established investment platform is designed to provide long-term, flexible capital—primarily in local currency—to Zambian SMEs, addressing a critical financing gap that has long hindered their growth and sustainability.
GIP Zambia has successfully closed its initial fundraising round at $70 million, with BII contributing $37.5 million, NAPSA committing $17.5 million, and Swedfund investing $15 million. The platform aims to unlock more than $300 million in capital over the next 15 years, targeting support for approximately 150 SMEs across key sectors, including manufacturing, agriculture, and financial services—industries vital to Zambia’s economic development and job creation.
Leslie Maasdorp, CEO of BII, emphasized the transformative potential of the initiative:
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 with GIP Ghana and reflects our long-term commitment to building local financing ecosystems that work for SMEs and entrepreneurs. This is catalytic development finance in action—mobilizing capital with domestic partners to support entrepreneurs and deliver real economic transformation.
Shipango Muteto, Chairperson of the NAPSA Board of Trustees, highlighted the strategic importance of the partnership:
The launch of GIP Zambia marks a significant milestone for NAPSA. This collaboration with BII and Swedfund enables us to direct patient capital into Zambia’s SMEs—the backbone of our economy. By supporting these businesses, we’re not only fostering job creation and economic activity but also reinforcing the long-term sustainability of our pension fund and securing the future of our members.
Marie Aglert, Chief Investment Officer at Swedfund, underscored the alignment with Swedfund’s regional strategy:
Access to long-term financing is essential for SMEs to grow their businesses in Zambia and beyond. Through our investment in GIP Zambia, we aim to provide local currency financing tailored to the needs of Zambian SMEs. This initiative aligns with our broader strategy to deepen our presence in Zambia and across Southern Africa.
Musonda Chipalo, CEO of GIP Zambia, expressed optimism about the platform’s impact:
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 offering flexible capital in local currency, designed around the real needs of local businesses. By mobilizing domestic capital and partnering with international institutions, we are fostering inclusive growth and building a stronger, more resilient economy for all Zambians.
With its unique blend of local and international backing, GIP Zambia is poised to become a cornerstone of Zambia’s SME financing landscape, offering a scalable model for sustainable economic development across the region.
