Growth Investment Partners (GIP) Zambia has announced its inaugural investment, marking a significant milestone in its mission to support local businesses. The investment will go to Boxpack Zambia, a leading family-owned manufacturer specializing in corrugated carton boxes and paper-based packaging solutions.
About GIP Zambia
GIP Zambia was established through a partnership between British International Investment (BII), Zambia’s National Pension Scheme Authority (NAPSA), and Swedfund. Its core mandate is to provide local currency growth capital to small and medium-sized enterprises (SMEs) in Zambia, addressing a critical financing gap that often limits their expansion potential.
Details of the Investment
The first transaction under GIP Zambia is a $5 million, seven-year royalty-based funding facility. This innovative structure links returns to Boxpack’s revenue performance rather than imposing rigid debt repayments or requiring equity dilution. Key features include:
- Royalty-based model: Aligns repayment obligations with business growth.
- Ownership retention: Allows Boxpack’s founding family to maintain full control.
- 12-month moratorium: Provides breathing space for the company to implement its expansion before repayments begin.
The funding will enable Boxpack to acquire a new production line, tripling its monthly output from 600 tonnes to 1,800 tonnes. This expansion will significantly reduce Zambia’s reliance on imported packaging materials and strengthen local supply chains.
Industry Context
Zambia’s packaging industry is experiencing rapid growth, driven by:
- Urbanization and population growth
- Expansion of e-commerce platforms
- Sustainability regulations favoring recyclable paper-based packaging over plastics
Despite rising demand, local production capacity remains insufficient, forcing businesses to depend on costly imports. Boxpack’s expansion addresses this gap, positioning the company as a key player in Zambia’s evolving packaging ecosystem.
Leadership Perspectives
Musonda Chipalo, CEO of GIP Zambia:
We are delighted to partner with Boxpack to support its capacity expansion. Our royalty funding product is tailored for fast-growing companies that need flexible, long-term capital aligned with their growth trajectory.
Dirk Holshausen, Director for South Central Africa at BII:
This investment underscores BII’s commitment to unlocking SME growth in Zambia. By strengthening local manufacturing and reducing import dependency, we are fostering inclusive economic development and job creation.
Muyangwa Muyangwa, Director General of NAPSA:
NAPSA is proud to demonstrate how pension funds can drive real economic growth. This investment reflects our responsibility to deliver impact while safeguarding sustainable pension benefits for our members.
Marie Aglert, Chief Investment Officer at Swedfund:
Supporting Boxpack aligns with Swedfund’s strategy to provide patient capital that enables SMEs to grow sustainably, create jobs, and deepen local value chains.
