Online Reporter
Britain and Sweden’s development-finance arms are partnering with the Zambian National Pension Scheme Authority to launch an investment platform backed by an initial US$70 million to provide capital for the southern African nation’s small and medium-sized businesses.
Growth Investment Partners Zambia was launched in the capital, Lusaka on Tuesday. British International Investment put up US$37,5 million alongside commitments of $17.5 million from Napsa and US$15 million from Swedfund, they said in a joint statement.
“When you see big economies, remember SMEs,” Zambian President Hakainde Hichilema told the event.
“We are working to grow our economy and we can not ignore this sector. It’s extremely important, it’s a bedrock of growth, it’s a bedrock of jobs.”
Over the next 15 years, GIP Zambia is expected to deploy more than US$300 million to 150 SMEs, BII, Swedfund and Napsa said.
“Zambia’s SME sector holds immense potential to drive inclusive growth and create jobs, but the right kind of capital remains elusive,” said BII chief executive officer Leslie Maasdorp.
Such businesses generate more than 70 percent of Zambia’s gross domestic product and 88 percent of employment, but more than 40 percent of SMEs surveyed by BII said they struggled to access financing needed to help them grow. — Bloomberg
