Boxpack Secures $5m Boost in GIP’s First Major Investment
Growth Investment Partners (GIP) Zambia, launched by President Hakainde Hichilema earlier this year, has announced its first major investment with a USD 5 million facility to support Boxpack Zambia Limited. This marks a significant milestone in GIP Zambia’s mission to unlock long-term financing for local Small and Medium-Sized Enterprises (SMEs).
The seven-year royalty-based investment will enable Boxpack, a family-owned manufacturer of corrugated carton boxes and paper-based packaging materials, to acquire a new production line. Once installed, the company is expected to triple its monthly output from 600 to 1,800 tonnes. The expansion will help Zambia meet growing demand for locally produced packaging materials, reducing reliance on imports.
Established in 2009, Boxpack has become a trusted supplier to fast-moving consumer goods companies, particularly within agriculture, food processing, and retail supply chains. As the demand for carton packaging grows due to urbanisation, population increase, e-commerce expansion, and sustainability regulations, the company is positioned to play a crucial role in strengthening Zambia’s manufacturing sector.
GIP Zambia’s innovative royalty funding structure ties returns to the company’s revenue performance, allowing Boxpack to access growth capital without giving up equity or committing to inflexible debt repayments. The arrangement includes a 12-month moratorium on principal payments to allow time for the expansion to take effect.
GIP Zambia CEO Musonda Chipalo said the partnership demonstrates GIP’s commitment to supporting high-potential Zambian enterprises.
“We are pleased to partner with Boxpack to support its capacity expansion. The royalty funding model is especially suited to fast-growing companies that need flexible, long-term capital with a repayment structure that moves in line with business performance,” he said.
British International Investment (BII), one of GIP Zambia’s founding partners, described the investment as an important milestone. Dirk Holshausen, BII Director for South Central Africa, said the support would help strengthen local manufacturing, reduce imports, and create jobs.
“Our partnership with NAPSA and Swedfund shows the power of patient, collaborative capital to deliver long-term impact,” he said.
NAPSA Director General Muyangwa Muyangwa added that the investment highlights the important role pension funds can play in stimulating economic growth.
“This investment shows how strategic, well-governed capital can transform industries while protecting the long-term value of our members’ savings,” he said.
Swedfund’s Chief Investment Officer, Marie Aglert, said the initiative aligns with Swedfund’s strategy to back businesses that strengthen local value chains and create jobs.
Beyond capital, GIP Zambia will provide Boxpack with targeted business support through BII’s Zambia Investment Support Programme. This includes strengthening the company’s financial reporting systems, improving environmental and social management, and developing formal governance structures. These improvements are expected to elevate Boxpack from a medium tier 2 to a medium tier 1 enterprise.
The expansion is projected to create jobs in production, logistics, marketing, sales, and administration. Staff training programmes will enhance technical capabilities in manufacturing and quality control, while increased production capacity is expected to benefit suppliers, transporters, and service providers within Zambia’s packaging value chain.
This investment supports the goals of Zambia’s Vision 2030 and the 8th National Development Plan, which prioritise SME development as a pathway to industrialisation, economic diversification, and job creation.
