GIP Zambia makes inaugural investment to catalyse local manufacturing 

• GIP Zambia makes an inaugural funding to a local packaging manufacturer, which will triple the company’s production and reduce reliance on imports. 
• Pioneering platform established by BII, in partnership with NAPSA and Swedfund, GIP Zambia is bridging the SME financing gap by providing long-term, flexible capital across all sectors. 

Lusaka, 11 November 2025 – Growth Investment Partners (GIP) Zambia, officially launched by Zambia’s Republican President, Mr Hakainde Hichilema on 15 July 2025, is pleased to announce its first major investment in Boxpack Zambia Limited, marking a significant step in its mission to unlock access to finance for the Zambian Small and Medium-Sized Enterprises (SMEs).

This inaugural investment is a USD 5 million, seven-year royalty funding which will enable Boxpack, a family-owned manufacturer of corrugated carton boxes and paper-based packaging materials, to acquire a new production line and triple its monthly output from 600 to 1,800 tonnes. This expansion will help meet Zambia’s growing packaging needs while reducing reliance on imported materials.

Founded in 2009, Boxpack Zambia has built a strong reputation as a reliable supplier to fast-moving consumer goods companies in Zambia. Operating out of its Lusaka facility, the company plays a vital role in supporting supply chains in agriculture, food processing, and retail stores.

Zambia’s packaging industry is undergoing rapid transformation, with demand for carton box packaging growing annually. This growth is driven by urbanisation, population growth, the expansion of e-commerce, and new sustainability regulations favouring recyclable paper-based materials over plastic. However, local production capacity remains insufficient to meet the rising demand, forcing many businesses to rely on costly imports.

GIP Zambia’s investment will bridge this supply gap by funding the procurement and installation of a new production line, enabling Boxpack to scale its operations and meet increasing demand. The investment also demonstrates the potential of Zambian manufacturing businesses to serve local market needs.

GIP Zambia’s innovative royalty funding structure partly ties returns to Boxpack’s revenue performance rather than requiring full fixed-debt repayments or equity dilution. This allows the founding family to retain ownership and control while accessing growth capital. The facility includes a 12-month moratorium on principal repayments, giving the company time to implement the expansion before repayments commence.

“We are pleased to partner with Boxpack to support its capacity expansion to meet growing local packaging demand. The royalty funding product is particularly suited to Boxpack and other companies that are growing rapidly and need flexible long-term growth funding with a debt service profile that tracks business growth.”

Musonda Chipalo, CEO, GIP Zambia

“This inaugural investment marks an important milestone for GIP Zambia and for BII’s commitment to unlocking growth for SMEs in Zambia. By supporting Boxpack’s expansion, we are helping to strengthen local manufacturing, reduce reliance on imports, and create jobs that drive inclusive economic development. Our partnership with NAPSA and Swedfund demonstrates the power of collaborative, patient capital to deliver long-term impact for businesses and communities.”

Dirk Holshausen, Director, South Central Africa, BII

“NAPSA is proud to partner with BII and Swedfund in delivering this first flexible loan under GIP Zambia. This USD 5 million investment in a local packaging manufacturer that has been operating since 2009 demonstrates the power of pension funds to stimulate real economic growth, support resilient Zambian enterprises, and create meaningful jobs for our people. As custodians of our members’ savings, we invest with both impact and responsibility, ensuring that every kwacha helps to build a stronger economy while safeguarding sustainable pension benefits. This milestone is a testament to how strategic, well-governed investments can transform industries and deliver long-term value for our members and the nation.”

Muyangwa Muyangwa, Director General, NAPSA

“We are pleased to support GIP Zambia’s first investment in a strong, locally anchored supplier that plays an important role in Zambia’s agricultural and food value chains. Our commitment to GIP Zambia reflects Swedfund’s strategy to provide long-term, patient capital that addresses financing gaps for SMEs and enables sustainable growth, job creation and deeper local value chains.”

Marie Aglert, Chief Investment Officer, Swedfund

Beyond financial support, GIP Zambia is providing extensive business support through BII’s Zambia Investment Support Programme. This technical assistance initiative will help Boxpack strengthen its financial reporting, establish a comprehensive Environmental and Social Management Framework, and implement formal board governance structures. These enhancements will support Boxpack’s transition from a medium tier 2 to a medium tier 1 enterprise, laying the foundation for sustainable long-term growth.

The expansion is expected to create new jobs across production, marketing and sales, logistics, and administration, while employee training programmes will enhance technical skills in manufacturing and quality control. As Boxpack grows, it will also strengthen the broader eco-system of local suppliers, transporters, and service providers within Zambia’s packaging value chain.