Launch of Impact Capital Africa: Zambia

Sara Drawwater
18 April 2018
Today the Impact Capital Africa: Zambia was officially launched by the Permanent Secretary of the Ministry of Commerce, Trade and Industry…

Launch of Impact Capital Africa: Zambia

Today the Impact Capital Africa: Zambia was officially launched by the Permanent Secretary of the Ministry of Commerce, Trade and Industry, Mrs Kayula Siame. Stakeholders and Media gathered for the launch at the Zambia Development Agency in Lusaka this morning, and heard about the ambitious and inspiring plans for this biennial event.

Key information

Previously known as the Zambia International Investment Forum, held at the Mulungushi International Conference Centre in 2016, Impact Capital Africa: Zambia now has a new look and scope, new partners and a new vision. The idea is not just that SMEs will link up with well-matched investors. A key indicator for measuring achievement will be the number and size of deals that are successfully brokered at the event.

This year’s programme culminates in an impact investment conference to be held on 2–3 October 2018 at Radisson Blu Hotel in Lusaka. Leading up to that, SMEs who successfully register for the programme have an opportunity for support as they prepare for the conference. This business support takes the form of professional help — to comply with all necessary Government bodies, to understand the implications of having an external investor, and to create a ‘data room’ containing documents potential investors will be expecting as they consider each company. Qualifying SME’s will be required to pay just 25% of the cost of this professional help.

An important aspect of this year’s programme relates to the impact it is designed to have. As well as leading to improved economic factors such as increased profits and national GDP, preparing SMEs and linking them successfully to investors is also expected to have a social and environmental impact. This type of engagement, with goals which are broader than just financial, is growing in popularity worldwide, and attracting a wide variety of players.

Why Zambia?

The Impact Capital Africa: Zambia website explains why Zambia. It boils down to Zambia’s stable economic fundamentals and security.

“Zambia has a reputation as one of the top investment destinations on the continent. The country is highly dependent on its extractive resources, meaning that the economy is extremely vulnerable to price volatility. The importance of commodity prices for economic growth highlights the urgent need to diversify the economy. The Zambian Development Agency see impact, ethical and purpose driven investment into SMEs as a vital step to expand and underpin diversification of the economy, generate employment opportunities, foster innovation and support the equitable distribution of wealth while building up resilience against the uncertainties of commodity markets.”

LEFT: Oliver Andrews of Kukula Capital explains what it takes to prepare a company for fund-raising. MIDDLE: Emma Parker and Dr Wala Chabala of Musangu Foundation giving an overview of Impact Capital Africa. RIGHT: James Blewett of PEP Zambia talks about the role of PEP Zambia in getting businesses ready for investment.

Progress so far

Organisations who are partnering in the Impact Capital Africa: Zambia programme include the Zambia Development Agency, Musangu Foundation, Exigent Events and PEP Zambia. SME business support is being provided by Kukula Capital and Open Capital Advisors.

Potential investors have already been identified and are being contacted. Some are local and some are international.

An online platform is being developed. To maximise the deal flow coming directly from the conference. PEP Zambia will identify and develop a pipeline of SMEs, giving them access to business support to make them ‘investment ready’ and list them on ‘Impact starter’, which will be a component of the online platform.

Who should apply

The target SME group is established businesses looking for an investment of K500,000+. But smaller companies or start-ups are not excluded — their applications will be channelled to finding ‘angel investors’.

How to apply

If you run an SME and are interested in participating in Impact Capital Africa: Zambia, you need to apply as soon as possible. Email or contact PEP Zambia (James Blewett or Deborah Worton) or ZDA (Jessica Chumba or Mukula Makasa).