from ARNOLD MULENGA in Lusaka, Zambia
Zambia Bureau
LUSAKA, (CAJ News) – BRITISH International Investment (BII), the UK’s development finance institution, is committing $65 million across Zambia and Zimbabwe as it launches its five-year strategy in Zambia, focusing on strengthening financial markets and expanding access to finance.
The package combines investment, technical assistance and support for financial institutions, targeting barriers that constrain business growth, trade and private investment.
In Zambia, BII is committing $15 million as an anchor investor in Zanaco’s debut $100 million Sustainability Bond Programme.
The transaction is expected to help establish Zambia’s first bank-issued sustainability bond and demonstrate how domestic capital markets can channel funding towards projects with environmental and social benefits.
Proceeds from the programme will support climate-resilient agriculture, renewable energy, small and medium-sized enterprises, women-owned businesses and social infrastructure.
About 40 per cent of the capital is expected to come from non-DFI investors, potentially broadening participation in Zambia’s sustainable finance market.
BII has worked with Zanaco since 2023 to develop the programme, providing technical assistance to strengthen its sustainable finance framework, build its green financing pipeline and improve environmental and social standards.
In Zimbabwe, BII is providing a combined $50 million facility to Central Africa Building Society (CABS) and NMB Bank through its Zimbabwe Agriculture Finance Programme.
The initiative is designed to address financing gaps facing agricultural businesses, which play a role in jobs, exports and food security but often struggle to secure long-term capital and trade finance.
The facilities will combine long-term lending with trade finance, helping businesses invest in productive assets, import equipment and agricultural inputs, and expand across the value chain.
Technical assistance will support stronger environmental, social and climate risk management within Zimbabwe’s banking sector.
BII said the structure is intended to support local financial institutions while demonstrating the potential for private investment in frontier markets.
The institution is also launching Horizon Zambia, a country-focused technical assistance programme aimed at strengthening the investment ecosystem.
It will help businesses become investment-ready, assist investors in identifying opportunities and support a dynamic market through technical assistance, policy engagement and strategic partnerships.
Horizon Zambia builds on a pilot launched last year that supported 15 small and medium-sized enterprises and helped facilitate $8 million in investments.
It forms part of BII’s Horizon platform, which also includes programmes in Sierra Leone, Nepal and Ghana, alongside the Africa Resilience Investment Accelerator.
UK Minister for International Development Kirsty McNeill said the investments showed how the UK was using capital and expertise to attract private investment, create jobs and support climate-resilient agriculture, renewable energy and women-owned businesses.
Chris Chijiutomi, BII’s Managing Director and Head of Africa, said the investments would expand access to long-term finance, strengthen capital markets and help businesses invest, trade and grow, creating conditions for more private capital to follow.
– CAJ News