By Staff Reporter
President Hakainde Hichilema yesterday launched the Growth Zambia Investment Partners Zambia (GIP) which is designed to provide long term, flexible capital to small and medium sized enterprise (SMEs) in Zambia.
GIP Zambia has secured an initial fundraising close to US$70 million, with US$37.5 million from Swedfund, British International Investment (BII) along side anchor commitments of US$ 17.5 million from National Pension Scheme Authority (NAPSA) and US$15 million from Swedfund, GIP Zambia aimed at addressing the persistent financing gap that had long constrained the growth of Zambia’s sector.
GIP Zambia’s financing solutions complement existing offerings by banks and others by providing features such as longer tenors, reduced collateral acquirement, 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.
Speaking at the launch, Swedfund chief investment officer Marie Aglert said access to long term financing was essential for SMSs 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,” Aglert said.
Bll chief executive officer Leslie Maasdorp said Zambia’s SME sector held immense potential to drive inclusive growth and create jobs, but the right kind of capital remained elusive for many businesses.
Maasdorp said GIP Zambia builds on experience of launching GIP Ghana and reflected on its long term commitment to building local financing ecosystems that work for SMEs and entrepreneurs.
“We believe this is how catalytic developmenty finance should operate-working with domestic partners to moblise capital, support enterprenuers and eliver real economic transformation,” Maasdorp said.
NAPSA chairperson and board of Trustees Shipango Mutelo said the launch of GIP Zambia marked a significant milestone for NAPSA.
Mutelo said this strategic partnership BII and Swedfund allowed them to channel much needed patient capital into Zambia’s SMEs – the very backbone of the economy.
“We are confident that by supporting the growth of these local businesses we will catalyse job creation and stimulate border economic activity. For NAPSA, this is not just an investment, it is an imperative that directly contributes to growing our membership base, theby strengthening the long term sustainability of the pension fund and securing the future of our members,” said Muteto.
GIP chief executive officer Musonda Chipalo added that Zambian entrepreneurs were full of drive and creativity, but too many faced the same obstacles which included lack of appropriate long term finance to grow their businesses sustainably.
He said GIP Zambia was here to change this narrative by proving long term, flexible capital in local currency, designed around the real needs of local businesses, by mobilising domestic capital and working with international partners, GIP was driving inclusive growth and creating a stronger economy that truly worked for Zambians.
