By 
Growth Investment Partners (GIP) Zambia has announced a US$5 million investment in Boxpack Zambia Limited, marking a significant milestone in its mission to expand access to finance for the country’s Small and Medium-Sized Enterprises (SMEs).
The seven-year royalty funding, it is said, will enable Boxpack, a manufacturer of corrugated carton boxes and paper-based packaging materials, to acquire a new production line and triple its monthly output from 600 to 1,800 tonnes.
GIP Zambia Chief Executive Officer, Musonda Chipalo, said the expansion would help meet Zambia’s growing packaging needs while reducing reliance on imported materials.
He said that the company plays a vital role in supporting supply chains in agriculture, food processing, and retail.
Chipalo noted that Zambia’s packaging industry was undergoing rapid transformation, driven by factors such as urbanisation, population growth, the expansion of e-commerce, and new sustainability regulations favouring recyclable paper-based materials over plastic.
However, he noted that local production capacity remained insufficient to meet the rising demand, forcing many businesses to rely on costly imports.
“GIP Zambia’s investment will bridge this supply gap by funding the procurement and installation of a new production line, enabling firm to scale its operations and meet increasing demand,” Chipalo said.
He added that the investment demonstrated the potential of Zambian manufacturing businesses to meet domestic market needs.
“We are pleased to partner with Boxpack to support its capacity expansion to meet growing local packaging demand. The royalty funding product is particularly suited to Boxpack and other companies that are growing rapidly and need flexible long-term growth funding with a debt service profile that tracks business growth,” he said.
Dirk Holshausen, Director for South Central Africa at British International Investment (BII), described the inaugural investment as an important milestone for GIP Zambia and for BII’s commitment to unlocking growth for SMEs in Zambia.
Holshausen said by supporting Boxpack’s expansion, BII was helping to strengthen local manufacturing, reduce reliance on imports, and create jobs that drive inclusive economic development.
“Our partnership with NAPSA and Swedfund demonstrates the power of collaborative, patient capital to deliver long-term impact for businesses and communities,” he stated.
Meanwhile, NAPSA Director-General, Muyangwa Muyangwa, said: “NAPSA is proud to partner with BII and Swedfund in delivering this first flexible loan under GIP Zambia.
“The US$5 million investment in a local packaging manufacturer that has been operating since 2009 demonstrates the power of pension funds to stimulate real economic growth and support resilient Zambian enterprises.
“As custodians of our members’ savings, we invest with both impact and responsibility, ensuring that every kwacha helps to build a stronger economy while safeguarding sustainable pension benefits,” he said.
Marie Aglert, Chief Investment Officer at Swedfund, added: “We are pleased to support GIP Zambia’s first investment in a strong, locally anchored supplier that plays an important role in Zambia’s agricultural and food value chains.”
She said Swedfund’s commitment to GIP Zambia reflects its strategy to provide long-term, patient capital that addresses financing gaps for SMEs and enables sustainable growth, job creation, and deeper local value chains.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments