Announced during the Zambian launch of its new five-year strategy, the package includes $15 million for Zanaco’s sustainability bond program and $50 million for lending and trade finance through Zimbabwean financial institutions.

In Zambia, BII will act as an anchor investor in Zanaco’s debut $100 million Sustainability Bond Programme, supporting what BII describes as the country’s first bank-issued sustainability bond.

The proceeds will finance climate-resilient agriculture, renewable energy, small and medium-sized enterprises, women-owned businesses, and essential social infrastructure.

Zanaco says the program will comprise two $50 million tranches, with the initial sustainability bond offered through a private placement restricted to institutional investors.

The bank will specify the second tranche’s use of proceeds when it is issued, distinguishing the overall $100 million program from the initial fundraising.

BII expects around 40% of the capital to come from investors outside development finance institutions.

Their participation would broaden the funding base for eligible projects and give Zambia’s capital market a larger role in financing environmental and social investments.

BII has supported Zanaco’s preparations since 2023, helping the bank develop its sustainable finance framework, identify eligible green projects, and strengthen environmental and social standards.

In Zimbabwe, the $50 million package will be provided through Central Africa Building Society (CABS) and NMB Bank under BII’s Zimbabwe Agriculture Finance Programme.

It combines longer-term lending for business investment with trade finance for equipment, agricultural inputs, and other goods needed across agricultural supply chains. Technical assistance will also help participating banks improve their management of environmental, social, and climate risks.

CABS separately confirmed that its share is a $30 million financing partnership comprising a $20 million term loan signed on September 24 and a planned $10 million trade finance facility.

BII’s first partnership with CABS targets eligible agricultural and food manufacturing exporters, including businesses requiring financing for fertilizer, machinery, commodities, and other productive equipment.

The financing addresses two related constraints identified by BII and CABS: limited access to long-term dollar funding for production investment and insufficient trade finance to support imports and exports.

Providing both through local lenders is intended to help businesses fund productive assets while securing the supplies required to operate and reach overseas customers.

Alongside the financial commitments, BII launched Horizon Zambia to help businesses prepare for investment and assist investors in finding suitable opportunities.

The initiative combines technical assistance, policy engagement, and strategic partnerships, building on a 2025 pilot that supported 15 SMEs and helped facilitate $8 million in investments.

It joins Horizon programs in Sierra Leone, Nepal, and Ghana, alongside the Africa Resilience Investment Accelerator’s work to develop investment opportunities across frontier markets.

“By doing so, we aim to create the conditions for more private capital to follow,” said Chris Chijiutomi, BII’s managing director and head of Africa, referring to its partnerships with financial institutions and targeted technical assistance.

Together, the initiatives address both the availability of finance and businesses’ ability to secure it.

Zanaco’s bond creates a route for institutional investment into sustainable projects, Zimbabwe’s facilities connect production financing with trade needs, and Horizon Zambia supports businesses preparing to raise capital.