Growth Investment Partners Zambia
Introduction
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.
Read more in our press release: Swedfund, BII and NAPSA launch Growth Investment Partners Zambia to transform SME financing in Zambia
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Gender Equality
Achieve gender equality and empower all women and girls.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
Sector
Financial Inclusion
Financial Inclusion invests in, amongst others, regulated banks and microfinance institutions to reach out more broadly and effectively.
Value creation
Impact
The investment supports sector and market development in Zambia by driving product innovation and expanding financial access for SMEs. It contributes to socio-economic growth by providing capital and business support to Zambian enterprises, creating jobs and income-generating opportunities while promoting inclusive ownership and leadership. The investment also advances gender equality and women’s empowerment by intentionally supporting women-led businesses and aligning with the 2X Challenge.
Additionality
The investment is financially additional as it is made in a challenging market characterised by high risk, limited access to capital, and significant financing constraints. The investment is expected to help mobilise capital. It is value additional through its contribution to governance, enterprise improvements, and the promotion of social and environmental standards.
ESG
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG Risk
E&S risk categorisation is Medium-High risk (B+) due to the inherent E&S risks/impacts of the sectors and high contextual risks in the country, especially in the mining sector value chain. Key E&S risks at investee level include occupational health and safety, and decent working conditions, gender and human rights.
ESG Mitigation Measures
Swedfund is supporting GIP Zambia in hiring of an E&S Manager and conduct E&S training; developing and implementing an Environmental and Social Management System (ESMS) which includes a Mining Services Risk Framework; and the development of a Human Resources Manual. Swedfund is also working with the company to further strengthen their Business Integrity Management System (BIMS).
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1-2 are applicable at the Investment Company level, while IFC PS 1-4 are applicable at the investment, while IFC PS 5-8 may be triggered on a case-by-case basis.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.