US$80 million fund launched to boost financing for Zambia’s underserved businesses

A new US$80 million investment fund aimed at expanding access to long-term financing for Zambian businesses was unveiled during the fourth Africa Impact Summit, with organisers describing it as a key step towards addressing the country’s funding gap for growing enterprises.

The GIP Zambia Fund, developed through a partnership involving the National Pension Scheme Authority (NAPSA), British International Investment (BII) and Swedfund, is designed to provide flexible, patient capital to businesses that often struggle to secure financing from conventional lenders.

In a statement issued on Monday, the fund was one of the major announcements made at the summit, which brought together more than 300 policymakers, investors, development partners and financial institutions to discuss impact investing and sustainable economic development.

“Delegates said the initiative is intended to support the so-called “missing middle” – businesses that have outgrown microfinance but remain unable to access sufficient capital to expand their operations,” the statement stated.

The unveiling of the fund comes amid growing calls for greater mobilisation of domestic and international investment to support private sector growth and job creation across Africa.

Speakers at the summit argued that the continent’s challenge is less about the availability of capital and more about creating effective channels to direct institutional resources, including pension and insurance funds, towards productive investments.

The event also featured the launch of Zambia’s Impact Policy Roadmap, which seeks to guide future legislative and structural reforms to strengthen the country’s impact investment ecosystem.

In addition, the National Advisory Board for Impact Investment Zambia and the Bank of Zambia announced the Small Business Growth Initiative, under which the central bank has committed K5 billion to increase financing for micro, small and medium-sized enterprises.

The Africa Impact Summit concluded with calls for stronger collaboration between governments, investors and development partners to unlock financing for businesses capable of driving inclusive economic growth and sustainable development across the continent.

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