Venture by BII and Swedfund initiates, aiming to fund small and medium-sized enterprises in Zambia
The Growth Investment Partners (GIP) Zambia, a strategic partnership aimed at improving Small and Medium Enterprises (SME) financing in Zambia, was launched in July 2025. This collaboration between British International Investment (BII), Swedfund, and Zambia's National Pension Scheme Authority (Napsa) aims to deploy substantial funding in local currency to enhance SME financing in the country.
Funding and Commitments
The partners have committed approximately 1.6 billion Zambian kwacha (US$70 million) initially, with expectations to deploy over 6.9 billion kwacha (around US$300 million) to around 150 SMEs over a 15-year horizon. The funding includes 859 billion Zambian kwacha (approximately US$37.5 million) from BII, 401 million kwacha (approximately US$17.5 million) from Napsa, and 344 million kwacha (approximately US$15 million) from Swedfund.
Impact on SME Financing in Zambia
The GIP Zambia model provides local currency funding, which is crucial for SMEs to manage currency risks and plan investments with greater certainty. By pooling funds from international and domestic institutional investors, the model enhances access to capital that was historically limited for SMEs in Zambia, supporting their growth and sustainability. This funding is expected to catalyze SME development across various sectors, potentially increasing job creation, innovation, and economic diversification in Zambia.
Focus on Inclusive Business Ownership
The GIP Zambia model has a strong focus on inclusive business ownership, notably supporting women and locally owned and led firms. It will provide financing to SMEs with annual revenues and assets between $100,000 and $15 million, and financing needs of $500,000 to $5 million.
Priority Sectors
Key economic sectors to be prioritised include manufacturing, agriculture, and financial services. The aim is to help these SMEs grow, create jobs, and become more attractive for investors from traditional capital markets.
A Long-Term Commitment
Leslie Maasdorp, CEO of BII, stated that GIP Zambia builds on the DFI's experience of launching GIP Ghana. Shipango Muteto, chair of NAPSA's board, considered the launch of GIP Zambia as a significant milestone for the pension fund. For NAPSA, this investment is more than just an investment, it is an imperative that directly contributes to growing their membership base, thereby strengthening the long-term sustainability of the pension fund and securing the future of their members.
The launch of GIP Zambia represents a significant institutional effort to enhance SME financing by leveraging public and private capital in a sustainable, long-term partnership focused on Zambia's economic growth.
[1] Source: British International Investment (BII) press release, July 2025.
- The social impact of the Growth Investment Partners (GIP) Zambia is expected to catalyze SME development, potentially increasing job creation and economic diversification in the country.
- The GIP Zambia model aims to provide financing to small businesses with annual revenues and assets between $100,000 and $15 million.
- The partnership between British International Investment (BII), Swedfund, and Zambia's National Pension Scheme Authority (Napsa) is focused on diversity-and-inclusion, notably supporting women and locally owned and led firms.
- The funding provided by GIP Zambia will allow small businesses to manage currency risks and plan investments with greater certainty, vital for their growth and sustainability.
- The GIP Zambia model will provide financing to around 150 small and medium enterprises (SMEs) over a 15-year horizon.
- The private equity firm, GIP Zambia, has a long-term commitment to enhancing SME financing in Zambia, partnering with British International Investment (BII), Swedfund, and Zambia's National Pension Scheme Authority (Napsa).
- NAPSA considers the launch of GIP Zambia as a significant milestone for the pension fund, with the investment serving as an imperative towards growing their membership base and securing the future of their members.
- The GIP Zambia model pools funds from international and domestic institutional investors, potentially expanding financial inclusion in the country.
- Venture capital and wealth management opportunities may arise for interested individuals and institutions through investments in small businesses supported by GIP Zambia.
- Practicing good personal-finance habits such as saving, debt management, and budgeting will be essential for individuals and businesses looking to capitalize on the opportunities that could result from the launch of GIP Zambia in Zambia.
