Swedfund, British International Investment (BII) and Zambia’s National Pension Scheme Authority (NAPSA) have announced the launch of Growth Investment Partners Zambia (GIP Zambia). This pioneering 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 US$ 70 million. With US$ 37.5 million from BII alongside anchor commitments of US$ 17.5 million from NAPSA and US$ 15 million from Swedfund, GIP Zambia aims to address the persistent financing gap that has long constrained the growth of Zambia’s SME sector.
SMEs are the backbone of Zambia’s economy, contributing over 70 per cent of GDP and 88 per cent of employment. However, more than 40 per cent of SMEs surveyed by BII reported challenges in accessing financing that addresses their growth needs. This is often due to structurally constrained bank lending and limitations of the traditional private equity model, such as large ticket sizes and short investment horizons. GIP Zambia is designed to help close this gap by offering patient, flexible capital needed to fuel the long-term growth of Zambian SMEs.
GIP Zambia’s financing solutions complement existing offerings by banks and others by providing features such as longer tenors, reduced collateral requirements, more flexible repayment arrangements and risk sharing, and tailored business support. These offerings are designed to empower SMEs to grow sustainably, create jobs, and deepen their role in the national economy.
Over the next 15 years, GIP Zambia is expected to deploy more than $300 million to 150 SMEs, catalysing the creation of new jobs and enhancing the readiness of SMEs for investment by more traditional capital markets. The platform will prioritise investments in several sectors that drive economic growth, including manufacturing, agriculture and financial services, with a strong focus on inclusive business ownership, particularly supporting women and locally owned and led enterprises.
GIP Zambia will support Zambia’s long-term development goals under Vision 2030 and the 8th National Development Plan, both of which prioritise private sector development, job creation, and economic diversification. GIP Zambia builds on the successful launch of Growth Investment Partners Ghana in 2023, demonstrating a scalable and replicable model for SME financing across Africa. It represents a bold step toward mobilising local and international capital, addressing the estimated $330–$421 billion SME financing gap across the continent.
Marie Aglert, Chief Investment Officer, Swedfund, said during the launch: “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.”
The launch was held in Lusaka on Tuesday 15 July and officiated by Zambia’s Republican President, Mr. Hakainde Hichilema, underscoring the Zambian government’s commitment to strengthening the SME sector and attracting long-term private capital.
