The Small Business Growth Initiative (SBGI)
Providing a comprehensive approach to MSME financing.
Case Details
Clients: Pixel Art Company
Start Day: 13/01/2024
Tags: Marketing, Business
Project Duration: 9 Month
Client Website: Pixelartteams.com
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The Story
The Small Business Growth Initiative (SBGI) is a ZMW 5 billion fund designed to address the longstanding challenge of limited access to affordable financing for Micro, Small, and Medium Enterprises (MSMEs) in Zambia.
This initiative, spearheaded by the Bank of Zambia (BoZ) in collaboration with the Zambia National Advisory Board for Impact Investments (NABII) and other partners, is rooted in the belief that MSMEs are vital drivers of economic growth, job creation, and innovation. The SBGI provides a comprehensive approach to MSME financing through:
To incentivize financial intermediaries to lend to MSMEs by mitigating credit risk.
To strengthen MSMEs, financial institutions, and business service providers.
The ZMW 5 billion (USD 190 million) seed funding from BoZ is poised to create a sustainable, secure, and scalable financing ecosystem. This initiative represents a bold step toward formalizing the informal sector, increasing MSME productivity, and achieving Zambia’s private-sector-led development goals. NABII’s role in setting up the facility has been focused on conducting a feasibility study to assess market gaps and demand, designing the fund (financing, capital structure, and mechanism for capital deployment) , including refining the design elements which includes developing an Apex Structure which will be responsible for managing the day-to-day operations of the SBGI Debt Sleeve. The pilot phase of the debt sleeve is set to roll out in Q1 of 2025. For partnerships and collaborations get in touch with us.
In 2025 NABII will launching a feasibility study to support the design of the Alternative Capital Sleeve of the SBGI in collaboration with get in touch to learn more.
