Today marks a pivotal moment in Zimbabwe's economic landscape as the BUILD Fund, along with its ‘companion’, the BUILDER Technical Assistance (TA) Facility, was officially launched at a special event hosted in Harare.

The event, set to be followed by webinars in January 2024, aims to introduce and engage with Small-to-Medium Enterprises (SMEs) and technical assistance providers interested in participating in the BUILD Fund and BUILDER TA Facility initiatives. These webinars will provide valuable insights into the application process for SMEs seeking funding and the potential inclusion of technical assistance providers into the BUILDER TA providers’ pool.

The BUILD Fund, an innovative blended impact finance vehicle, is strategically designed to provide financial support to SMEs and businesses with significant development impact potential, particularly in Least Developed Countries (LDCs) and other developing economies.

The BUILDER TA Facility, serving as the sidecar to the BUILD Fund, plays a critical role in generating a pipeline of prospective investments. It offers pre- and post-investment business advisory support to prospect and investee companies, aiming to de-risk financial transactions and maximize the positive developmental impact of investments.

Bamboo Capital Partners and the United Nations Capital Development Fund (UNCDF) are steadfast in their commitment to delivering "missing middle" finance to Zimbabwean businesses, a sector often underserved by microfinance institutions and deemed too small for formal banking. The economic and social consequences of this "missing middle" are substantial, given that most economic growth and employment are generated by SMEs.

Earlier this year, Switzerland through the Swiss Agency for Development and Cooperation (SDC), announced a significant investment of US$16 million into the BUILD Fund. Out of this, US$10 million is specifically allocated to support projects in Zambia and Zimbabwe through UNCDF, with an additional US$5,5 million directly invested into the global BUILD Fund. SDC has further earmarked US$1 million for the provision of technical assistance through the BUILDER Technical Assistance (TA) Facility.

The launch today signifies a collaborative effort to foster economic growth, support SMEs, and make a lasting developmental impact. The BUILD Fund and BUILDER TA Facility are poised to play a transformative role in Zimbabwe's business landscape.

During the launch, David Grimaud, CEO, Bamboo Capital Partners, said, “Bamboo Capital Partners is excited to see the BUILD Fund and BUILDER TA Facility launched in Zimbabwe. By deploying financing to SDG-aligned SMEs in Zimbabwe, the BUILD Fund will invest in the engine room of economies – SMEs – with the objective to increase sustainable economic activity, create quality jobs and contribute to the SGDs in the country.”

The SDC Head of Cooperation, Mr. Stefano Berti said, “Switzerland is supporting SMEs in lower-middle income countries including Zimbabwe and Zambia in order to reach the Sustainable Development Goals. We plan to contribute to economic development and hopeful create critically needed jobs especially among young people through this fund and contribute to the growth of the GDP in the two countries.”

“UNCDF takes pride in structuring pioneering blended finance vehicles with private sector partners, cementing our status as the UN's leading financing entity for LDCs. The $16 million funding commitment from SDC for BUILD+BUILDER, which was announced earlier this year, builds upon the already-committed $60 million, extends our impact, and allows us to advance in our mission towards the attainment of the SDGs. With BUILD+BUILDER, we're taking crucial steps, not only in LDCs but also in new markets like Zimbabwe, to address the urgent needs for capital and advisory services for SDG-aligned businesses,” said Mr Mourad Wahba, Officer in Charge, UNCDF.

About the Build Fund and BUILDER TA Facility

The Bamboo-UNCDF Initiative for the Least Developed Countries – “BUILD” – is an innovative blended impact finance vehicle designed to bring finance to small-and-medium sized enterprises (SMEs) and businesses that have the potential for strong development impact in the world’s frontier markets or least developed countries. The BUILD Fund is a partnership between United Nations Capital Development Fund (UNCDF) and Bamboo Capital Partners. Managed by Bamboo Capital Partners, the Fund provides growth capital to businesses identified, supported and nurtured by UNCDF. The BUILDER Technical Assistance (TA) Facility is managed by UNCDF, which is closely involved in pipeline generation, portfolio building, and business advisory support to the companies. The BUILD Fund is supported by the Government of Luxembourg, Global Affairs Canada (GAC), the Norwegian Agency for Development Cooperation (Norad), the Nordic Development Fund (NDF), the Swedish International Development Cooperation Agency (SIDA), the U.S. International Development Finance Corporation (USDFC) and the Swiss Agency for Development and Cooperation (SDC).

About UNCDF

The United Nations Capital Development Fund (UNCDF) is the United Nations' flagship catalytic financing entity for the world’s 46 least developed countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.

UNCDF builds partnerships with other UN organizations, as well as private and public sector actors, to achieve greater impact in development, specifically by unlocking additional resources and strengthening financing mechanisms and systems contributing to transformation pathways, focusing on such development themes as green economy, digitalization, urbanization, inclusive economies, gender equality, and women’s economic empowerment.

A hybrid development finance institution and development agency, UNCDF uses a combination of capital instruments (deployment, financial and business advisory and catalysation) and development instruments (technical assistance, capacity development, policy advice, advocacy, thought leadership, and market analysis and scoping), which are applied across five priority areas (inclusive digital economies, local transformative finance, women’s economic empowerment, climate, energy, and biodiversity finance, and sustainable food systems finance).

For more information, please visit www.uncdf.org

About Bamboo Capital Partners

Bamboo Capital Partners (“Bamboo”) is a specialist impact asset manager in emerging and frontier markets. Bamboo provides innovative financing solutions to catalyse lasting impact. Bamboo bridges the gap between seed and growth stage funding through a full suite of finance options – from debt to equity – which it activates unilaterally or through strategic partnerships. Founded in 2007, Bamboo aims to improve the lives of marginalized communities in emerging and frontier markets while delivering financial returns. To date, Bamboo has raised over USD$450m and invested in 80 companies worldwide. Bamboo’s investee companies have positively impacted the lives of 244 million people cumulatively and supported 58,400 jobs, including 20,600 jobs for women. The Bamboo team comprises of 30 professionals active across Europe, Latin America, Africa and Asia. Bamboo is the wholly owned asset management arm of global impact firm Palladium, which operates in over 90 countries. Palladium works with corporations, governments, investors, communities, and civil society to link social progress and commercial growth.

For more information, please visit www.bamboocp.com or follow @bamboocp.