President Hichilema Launches $70 Million SME Fund to Drive Economic Growth

President Hakainde Hichilema has officially launched the $70 million Growth Investment Partners (GIP) initiative, a landmark programme aimed at supporting 150 small and medium enterprises (SMEs) across the region. Over the next 15 years, the initiative is expected to mobilise $300 million in investment toward SME development and expansion.

Backed by key partners including British International Investment (BII), the National Pension Scheme Authority (NAPSA), and Swedfund, GIP represents a strategic commitment to unlocking long-term financing for Zambia’s SME sector.

Speaking at the launch, President Hichilema emphasised the vital role SMEs play in national development.

“SMEs contribute approximately 70 percent of our Gross Domestic Product (GDP) and account for over 80 percent of employment. Yet, despite their significance, they continue to face challenges in accessing affordable capital,” he said.

The President called on all GIP stakeholders to pursue collaborative projects that will accelerate inclusive economic growth. He also reiterated that the establishment of the Ministry of Small and Medium Enterprises is a cornerstone of the government’s broader strategy to foster entrepreneurship, spur job creation, and strengthen the private sector.

Marie Aglert, Chief Investment Officer at Swedfund, welcomed the initiative, noting that tailored financial solutions are critical to SME resilience and scale.

“Through this investment in GIP Zambia, we are providing local currency financing specifically designed to meet the needs of Zambian SMEs. This aligns with Swedfund’s broader strategy to deepen our footprint in Zambia and the Southern African region,” she said.