HH launches US$300M to revolutionise SMEs

By MUKWIMA CHILALA

PRESIDENT Hakainde Hichilema yesterday launched Growth Investment Partners (GIP) Zambia, a multi-million initiative that seeks to provide over US$300 million to 150 small and medium-sized enterprises (SMEs) locally over the next 15 years.
President Hichilema says SMEs cannot be ignored as Government has been working towards economic reconstruction.
The President officially launched the GIP Zambia in Lusaka, a pioneering investment platform that is seeking to remarkably change the way SMEs were being financed in the nation.
GIP Zambia is backed by British International Investment (BII), National Pension Scheme Authority and Swedefund. The platform has since secured an initial fund amounting to US$70 million, and targets to deploy over US$300 million in SME financing over the next 15 years.
BII is a development finance institution of the United Kingdom and impact investor, while Swedefund is a Swedish financial institution and a key part of that country’s development cooperation.
Funding would be provided to established, growth-ready Zambian businesses with strong management teams, annual revenues and assets between US$100, 000 and US$15 million, and financing needs of US$500, 000 to US$5 million, as long as they are limited liability companies which contribute to job creation.
SMEs contribute over 80 percent to the country’s Gross Domestic Product and 88 percent to employment.
President Hichilema said GPI Zambia is a very important platform in the jigsaw puzzle towards the economic growth agenda.
“SMEs are very important to any economy.
“When you see big economies, remember SMEs. We are working to grow our economy and we cannot ignore this sector; it’s extremely important. It’s the bedrock of growth. It’s the bedrock of jobs,” he said.
President Hichilema added that SMEs should be valued because they are very important to the country’s economic growth agenda.
To walk the talk of real support to SMEs, President Hichilema created a standalone Ministry of Small and Medium Enterprises Development in September 2021, a first in the country’s history.
At the same event, Minister of Labour and Social Security Brenda Tambatamba said the launch of GPI Zambia is an initiative that represents a bold step towards unlocking the full potential of SMEs in the country.