The Bank of Zambia is the central bank of Zambia, responsible for monetary policy, financial system stability, and economic regulation. Beyond its traditional central banking mandate, it deploys development-oriented capital to address structural gaps in Zambia's financial system, particularly in access to credit for small and medium enterprises. The Small Business Growth Initiative, a fund-of-funds mechanism capitalized with $200 million in first-loss debt, exemplifies its approach to financial inclusion by channeling capital through intermediaries such as commercial lenders, fund managers, and microfinance institutions to support small business growth and job creation. By absorbing first lo...
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Zambia
The Small Business Growth Initiative is a fund-of-funds vehicle established in Zambia that channels capital to lenders, fund managers, and microfinance institutions focused on small business development across Africa. The fund structure employs a first-loss guarantee mechanism, with the Bank of Zambia providing USD 200 million in subordinated debt to mitigate risk and attract co-investment from institutional partners. By operating as an intermediary, the fund aims to expand access to growth capital for small and medium-sized enterprises while supporting job creation and economic opportunity in underserved markets. The initiative targets institutional investors seeking exposure to SME development and financial inclusion in Africa through a de-risked, catalytic investment framework.
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 Bank of Zambia Bank |
