GIP Zambia Launches with US$70 Million to Boost SME Financing
Lusaka, 15 July 2025 – Growth Investment Partners Zambia (GIP Zambia) has officially launched, backed by British International Investment (BII), Zambia’s National Pension Scheme Authority (NAPSA), and Swedfund, with an initial anchor commitment of US$ 70 million. The fund’s inaugural close comprises US$ 37.5 million from BII, US$ 17.5 million from NAPSA, and US$ 15 million from Swedfund .
Addressing Zambia’s SME Financing Gap
Small and medium-sized enterprises (SMEs) constitute more than 70 % of Zambia’s GDP and account for approximately 88 % of the labour force. Nonetheless, over 40 % of SMEs reported insufficient access to financing suited to their expansion needs. GIP Zambia offers local-currency financing with extended tenors, lower collateral requirements, flexible repayment structures, and risk-sharing mechanisms, complemented by tailored business support
Projections and Sector Focus
Over the next 15 years, GIP Zambia aims to deploy over US$ 300 million in long‑term capital to around 150 SMEs across key sectors including manufacturing, agriculture, and financial services. Emphasis will be placed on initiatives-led by women and locally-owned enterprises that align with Zambia’s Vision 2030 and Zambia’s 8th National Development Plan
Statements from Key Stakeholders
Leslie Maasdorp, CEO of BII, remarked:
“Zambia’s SME sector holds immense potential to drive inclusive growth and create jobs, but the right kind of capital remains elusive … GIP Zambia builds on our experience of launching GIP Ghana and reflects our long‑term commitment to building local financing ecosystems that work for SMEs and entrepreneurs.”
Shipango Muteto, Chairperson of NAPSA, noted:
“This strategic partnership … allows us to channel much‑needed patient capital into Zambia’s SMEs … we will catalyse job creation and stimulate broader economic activity … strengthening the long‑term sustainability of the pension fund.”
Marie Aglert, CIO at Swedfund, affirmed:
“Access to long‑term financing is essential for SMEs … 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.”
Musonda Chipalo, CEO of GIP Zambia, emphasized:
“Zambian entrepreneurs are full of drive and creativity, but too many face the same obstacle: a lack of appropriate, long‑term finance to grow their businesses sustainably.… By mobilising domestic capital and working with international partners, we are driving inclusive growth and creating a stronger economy that truly works for Zambians.”
Government Endorsement
The launch event took place in Lusaka on Tuesday 15th July 2025 and was officiated by Zambia’s Republican President, Mr Hakainde Hichilema, signalling the government of Zambia’s strategic support for the SME sector and its openness to long‑term private investment
Why It Matters
By blending local and international anchor funding, GIP Zambia introduces a financing model marked by flexibility, extended capital support, and business advisory services. It aims to bridge a significant infrastructure gap and support SME-driven economic diversification.
GIP Zambia represents an important structural initiative to strengthen Zambia’s SME sector by offering patient, local-currency capital designed for sustainable growth. Anchored by institutional investors and supported at the highest government levels, the platform is expected to accelerate job creation and advance national development strategies.