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The British International Investment (BII), the UK’s development finance institution and impact investor, together with Zambia’s National Pension Scheme Authority (NAPSA) and Swedfund, have announced the launch of Growth Investment Partners Zambia (GIP Zambia).
The pioneering investment platform is designed to provide long-term, flexible capital—amounting to $300 million over the next 15 years—primarily in local currency, to support 150 Small and Medium-sized Enterprises (SMEs) in Zambia.
The launch event, held at the Intercontinental Hotel in Lusaka on Tuesday, was officiated by President Hakainde Hichilema, who reaffirmed government’s commitment to strengthening the SME sector and attracting long-term private capital.
GIP Zambia has already secured $70 million in initial funding, with $37.5 million from BII, $17.5 million from NAPSA, and $15 million from Swedfund. The initiative aims to address the persistent financing gap that has long constrained SME growth in Zambia.
The platform will prioritize investments in key growth sectors, including manufacturing, agriculture, and financial services, with a strong focus on inclusive business ownership—particularly support for women and locally owned enterprises.
“SMEs contribute approximately 70 percent of our Gross Domestic Product (GDP) and account for over 80 percent of employment. Yet, despite their significance, they continue to face challenges in accessing affordable capital,” President Hichilema noted.
He said the establishment of the Ministry of Small and Medium Enterprises was part of the government’s strategy to provide targeted support, drive inclusive growth, foster innovation, and create jobs.
He also thanked the partners for backing the initiative, saying, “Through Growth Investment Partners Zambia, and with anchor commitments from BII, NAPSA, and Swedfund, SMEs now stand a real chance to thrive.”
“This initiative comes at a time of what we can describe as a ‘happy convergence’ of favourable exchange rates, lower inflation, and declining interest rates—positive indicators for sustainable economic growth,” he added.
British High Commissioner to Zambia, Rebecca Terzeon, said the GIP and BII’s broader work in Zambia were fundamental to delivering the UK-Zambia Green Growth Compact, under which the two countries have committed to building a stronger, more diversified and inclusive economy.
Under the compact, the UK and Zambia aim to attract £2.5 billion in private UK investment into Zambia’s mining, minerals, and renewable energy sectors; increase UK-government-backed investments by £500 million; and mobilize £150 million of private investment into Zambian SMEs.
“Growth Investment Partners Zambia is a bold and innovative initiative. It reflects the UK’s belief in Zambia’s potential and our commitment to inclusive economic growth,” Terzeon said.
Similarly, BII Chief Executive Officer, Leslie Maasdorp, said Zambia’s SME sector held immense potential but still lacks access to the right kind of capital.
“GIP Zambia builds on our experience from GIP Ghana and reflects our long-term commitment to developing local financing ecosystems that support SMEs and entrepreneurs,” Maasdorp said.
“This is how catalytic development finance should operate—working with domestic partners to mobilize capital and deliver real economic transformation,” he added.
Shipango Muteto, Chairperson of the NAPSA Board of Trustees, said the launch marked a milestone for NAPSA by channeling patient capital into Zambia’s SMEs—the backbone of the economy.
“For NAPSA, this is not just an investment. It’s a strategic imperative that will grow our membership base and strengthen the long-term sustainability of the pension fund,” Muteto said.
Swedfund’s Chief Investment Officer, Marie Aglert, emphasized that access to long-term financing was essential for SMEs to scale and grow.
“Through this investment in GIP Zambia, we are providing local currency financing tailored to the needs of Zambian SMEs. This aligns with Swedfund’s strategy to expand our presence in Zambia and across Southern Africa,” Aglert said.
GIP Zambia Chief Executive Officer, Musonda Chipalo, said Zambian entrepreneurs were full of creativity and ambition but lack appropriate, long-term financing.
“GIP Zambia is here to change that—by providing flexible capital designed around the real needs of local businesses. We are mobilizing domestic and international capital to build an economy that truly works for Zambians,” Chipalo said.
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