Swedfund, BII and NAPSA launch Growth Investment Partners Zambia to transform SME financing in Zambia

Swedfund, British International Investment (BII) and Zambia’s National Pension Scheme Authority (NAPSA) have announced the launch of Growth Investment Partners Zambia (GIP Zambia). This pioneering investment company is designed to provide long-term, flexible capital, primarily in local currency to small and medium-sized enterprises (SMEs) in Zambia.

GIP Zambia has secured an initial fundraising close of US$ 70 million. With US$ 37.5 million from BII alongside anchor commitments of US$ 17.5 million from NAPSA and US$ 15 million from Swedfund, GIP Zambia aims to address the persistent financing gap that has long constrained the growth of Zambia’s SME sector.

SMEs are the backbone of Zambia’s economy, contributing over 70 per cent of GDP and 88 per cent of employment. However, more than 40 per cent of SMEs surveyed by BII reported challenges in accessing financing that addresses their growth needs. This is often due to structurally constrained bank lending and limitations of the traditional private equity model, such as large ticket sizes and short investment horizons. GIP Zambia is designed to help close this gap by offering patient, flexible capital needed to fuel the long-term growth of Zambian SMEs.

GIP Zambia’s financing solutions complement existing offerings by banks and others by providing features such as longer tenors, reduced collateral requirements, 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.

Over the next 15 years, GIP Zambia is expected to deploy more than $300 million to 150 SMEs, catalysing the creation of new jobs and enhancing the readiness of SMEs for investment by more traditional capital markets. The platform will prioritise investments in several sectors that drive economic growth, including manufacturing, agriculture and financial services, with a strong focus on inclusive business ownership, particularly supporting women and locally owned and led enterprises.

GIP Zambia will support Zambia’s long-term development goals under Vision 2030 and the 8th National Development Plan, both of which prioritise private sector development, job creation, and economic diversification. GIP Zambia builds on the successful launch of Growth Investment Partners Ghana in 2023, demonstrating a scalable and replicable model for SME financing across Africa. It represents a bold step toward mobilising local and international capital, addressing the estimated $330–$421 billion SME financing gap across the continent.

Marie Aglert, Chief Investment Officer, Swedfund, said: “Access to long-term financing is essential for SMEs 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.”

Leslie Maasdorp, CEO, BII, said: “Zambia’s SME sector holds immense potential to drive inclusive growth and create jobs, but the right kind of capital remains elusive for many businesses. 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. We believe this is how catalytic development finance should operate - working with domestic partners to mobilise capital, support entrepreneurs, and deliver real economic transformation.”

Shipango Muteto, Chairperson, NAPSA Board of Trustees commented: “The launch of GIP Zambia marks a significant milestone for NAPSA. This strategic partnership with BII and Swedfund allows us to channel much-needed patient capital into Zambia’s SMEs — the very backbone of our economy. We are confident that by supporting the growth of these local businesses, we will catalyse job creation and stimulate broader economic activity. For NAPSA, this is not just an investment; it is an imperative that directly contributes to growing our membership base, thereby strengthening the long-term sustainability of the pension fund and securing the future of our members.”

Musonda Chipalo, CEO, GIP Zambia, added: "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. GIP Zambia is here to change that by providing long-term, flexible capital in local currency, designed around the real needs of local businesses. By mobilising domestic capital and working with international partners, we are driving inclusive growth and creating a stronger economy that truly works for Zambians.”

The launch was held in Lusaka on Tuesday and officiated by Zambia’s Republican President, Mr. Hakainde Hichilema, underscoring the Zambian government’s commitment to strengthening the SME sector and attracting long-term private capital.