Gov’t Scales Up Support for SMEs as President Hichilema Launches $70M GIP Zambia Fund
President Hakainde Hichilema has reaffirmed his government’s commitment to empowering Small and Medium Enterprises (SMEs), calling them the “backbone of the economy” during the launch of the Growth Investment Partners Zambia (GIP Zambia), a groundbreaking platform designed to bridge the financing gap for SMEs.
Speaking at the launch event in Lusaka, President Hichilema urged government agencies and private sector actors to increase their support for SMEs, which he described as engines of job creation and inclusive growth.
“When you see big economies, remember SMEs. They are the bedrock of our economic growth and jobs,” the President said. “Let’s value the SMEs consciously—they are very important to our growth agenda.”
The GIP Zambia initiative has secured an initial capital pool of US$70 million, backed by British International Investment (BII), Swedfund, and NAPSA. The platform aims to mobilize over US$300 million in SME financing over the next 15 years, prioritizing investments in manufacturing, agriculture, and financial services, in alignment with Vision 2030, the 8th National Development Plan, and the Capital Markets Master Plan.
President Hichilema further stressed the need for fairly priced capital and the application of technology, even at the smallest business levels, to help SMEs scale and remain competitive. He also raised concern about the country’s declining skilled labor base, noting its impact on productivity.
Minister of Labour and Social Security Brenda Tambatamba said the initiative demonstrates prudent management of social security funds and will help extend coverage to SMEs through formalization.
British High Commissioner to Zambia Rebecca Terzeon reiterated the UK’s commitment to Zambia’s growth, highlighting a broader agenda to attract £2.5 billion in UK private investments, including £500 million in government-backed financing and €150 million directed at Zambian SMEs.
Leslie Maasdorp, CEO of BII, and Marie Aglert, Chief Investment Officer at Swedfund, emphasized the importance of long-term financing tailored to SME needs and pledged continued support to Zambia’s SME ecosystem.
Shipango Muteto, Chairperson of the NAPSA Board of Trustees, said the investment is a strategic move to secure members’ futures while fostering national development.
