British International Investment has committed $65 million across Zambia and Zimbabwe in a package designed to channel development capital through local financial institutions and deepen domestic financing markets.
The commitments include a $15 million anchor investment in Zanaco’s planned $100 million Sustainability Bond Programme in Zambia and $50 million for agricultural financing through CABS and NMB Bank in Zimbabwe, according to British International Investment.
An anchor for Zambia’s sustainability-bond market
BII describes Zanaco’s programme as Zambia’s first sustainability bond programme issued by a bank. The development financier expects approximately 40% of the programme’s capital to come from non-development-finance investors.
The distinction between the programme size and BII’s investment is important: BII is committing $15 million as an anchor investor; the $100 million figure refers to the planned overall bond programme, not capital already raised by BII.
Proceeds are intended to support eligible sustainable activities, potentially including renewable energy, climate-resilient agriculture and other projects aligned with the bond framework.
Zimbabwe financing moves through local banks
The remaining $50 million is directed toward agricultural finance in Zimbabwe through CABS and NMB Bank. Using domestic institutions can extend development-finance capital to businesses that a foreign DFI would struggle to reach directly, while strengthening local banks’ ability to provide longer-term financing.
That model is increasingly important in frontier markets, where small and medium-sized enterprises frequently cite access to finance as a constraint and where shallow capital markets can limit the availability of long-duration local financing.
From project finance to market building
The package illustrates a broader evolution in development finance: rather than financing only individual projects, DFIs are also attempting to strengthen financial intermediaries and create instruments capable of attracting other investors.
The ultimate development impact will depend on execution—how much private capital the bond programme attracts, which borrowers receive financing and whether the underlying investments generate commercially sustainable growth alongside the stated climate and development objectives.
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