BUILD Fund - Bamboo-UNCDF Initiative for the Least Developed Fund

In Zambia and Zimbabwe, as in many developing countries, SMEs face difficulties to meet their financial needs, despite their importance to the achievement of the SDGs and their contribution to economic growth. This challenge is exacerbated for SDGoriented SMEs, defined as organizations that have social and/or environmental objectives.

Launched in 2020, the BUILD Fund is an innovative blended impact finance vehicle designed to bring finance to SDG-oriented SMEs in the Least Developed and Lower Middle Income countries such as Zambia and Zimbabwe.

The Swiss support to this fund is part of Switzerland’s effort to further engage with the private sector to achieve the SDGs. 

Immediate outcomes

1.    Supported investees provide equitable employment opportunities to women and men, and provide tailored products and services to local customers/users.

2.    Fiscal space for local governments is expanded.

3.    Knowledge and experience from investments in Least Developed Countries and suggestions on how to improve it, are shared with Governments.

Medium-term outcomes

4.    The flow of finance and investment for SDGoriented SMEs (including women-led SMEs) is unlocked.

5.    Sustainable jobs are created, positive economic ripple effect is generated on suppliers, consumers and users, and the wealth of local business owners, women and men, in last mile finance settings is increased.

6.    The positive impact of deepening domestic and international financial markets is demonstrated; the viability of sustainable investing in these markets and segments is showcased to a wider pool of investors.

Principaux résultats attendus:  

-    Tailor-made pre-investment technical assistance services are delivered to 141 investees to make them investment ready.

-    Debt and equity capital of US$ 119 million is provided to selected companies and projects.

-    Tailor-made post-investment technical assistance services are delivered to 93 investees.

Principaux résultats antérieurs:  

Considering the BUILD Fund’s results expected for 2022, the baseline is as follows:

-    1’666 people employed by investee companies and 232’333 served as customers/users. 

-    US$ 1.2 million aggregated income taxes paid by BUILD portfolio companies.

-    No forum/meeting held with governements so far.

-    US$ 15 million additional funding catalyzed from investors. 

-    51 new jobs created in BUILD Fund’s investees and 255 new ripple jobs created in upstream and downstream of value chains.

-    US$ 55.6 million worth additional funds raised by the BUILD Fund investee companies during the timeframe of BUILD Fund’s investments.

SDC supported projects in Zambia and Zimbabwe:

Markets and Seeds Access project; Energy & Environment Partnership Trust Fund Africa; Opportunities for Youth Employment in Agriculture.

Other projects supported by Switzerland:

Impact Linked Finance Fund (ILFF); Swiss Investment Fund for Emerging Markets (SIFEM); Renewable Energy and Resource Efficiency Promotion in Developing and Transition Countries (REPIC) platform.