Supporting a vibrant private sector in Zambia by focussing on micro-, small- and medium-sized enterprises

The programme was designed to be human rights-sensitive, ensuring social inclusivity and focussing on reaching women and youth entrepreneurs. In partnership with Zambian business development service providers, it carried out intensive Acceleration Programmes to boost productivity, growth and encourage responsible business practices in line with the UN Global Compact guidelines.

The AGS Programme set out to achieve the following outputs: 

1. The completion of the MSME Development Policy Consultation Process, as well as the policy’s review;
2. Improvements in technical and business management skills for registered Zambian startups and MSMEs;
3. Increased innovation activities and stronger business partnerships and linkages between Zambian enterprises and Finnish businesses and universities;
4. Increased access to local, regional and international markets for Zambian enterprises and the Zambian market for Finnish Businesses;
5. Increased access to appropriate finance to implement strategies geared towards business growth.

In essence, it sought to contribute to the transformation of growth-oriented startups and MSMEs through collaborative efforts with existing stakeholders. This was done by providing entrepreneurs with technical input so they could reach their potential and thrive under varying economic conditions.

The programme successfully delivered, contributing to the improved competitiveness and accelerated growth of MSMEs in Zambia, as well as supporting strengthened business partnerships between Zambia and Finland.

Empowering MSMEs through capacity building and business-oriented bilateral relations between Finland and Zambia 

Funded by the Finnish Ministry for Foreign Affairs (MFA) and implemented in partnership with the Ministry of Trade, Commerce and Industry (MCTI) of Zambia, the AGS Programme was aligned with MFA's country strategy for 2016-2019, which focussed on supporting a well-developed private sector, a more dynamic and inclusive society and business-oriented bilateral relations. 

To further these goals, the AGS Programme also brought together Zambian and Finnish companies, universities and other stakeholders to collaborate and transfer technologies, innovative practices and research know-how.

All-in-all, the AGS Programme achieved what it set out to do. It improved the competitiveness and growth of MSMEs in Zambia, strengthened these enterprises’ relationships with Finland, and empowered them through market access services. At every step, the team behind AGS not only made sure the enterprises were ready for business but also gave them the resources and knowledge needed to grow independently.

Stories of enterprises supported by the AGS Programme  

More than numbers, the programme gave rise to success stories for Zambian MSMEs. 

Professor “Jason” Muuka, founder of Lusaka’s MEM EdTech Solutions and Consultancy, shared how AGS helped his company attend the world-renowned Finnish startup and tech event Slush. As part of AGS’ goal of building partnerships between Zambian and Finnish enterprises, the programme team sent Zambian MSMEs to the event where Finnish businesses abound. 

“[They made] sure to prearrange meetings for us with companies they felt were in the same space as we are,” he says in the video below. “Through those meetings, we’re able to form partnerships with three Finnish companies.” His company has signed memorandums of understanding with the Finnish companies, leading to a consortium that aims to create an education system that gives both teachers and students the tools they need.

Another story in Lusaka comes from Mireyly Natures Soap, founded by Mireyly Chimfwembe. Her business creates eco-friendly soaps and other skincare products. "AGS came in the right time when Mireyly Natures Soap was really a baby,” she says in the same video. "Where Mireyly Natures Soap has reached today is because of the…many activities that we did with AGS.” 

Through the AGS Commodity Fund, Mireyly received a grant for equipment and machinery, helping scale her business’ production and meet the demand for organic soaps. From an initial investment of ZMW 5000 (almost EUR 170), Mireyly Natures Soap got a turnover of ZMW 300,000 (about EUR 10,178) in sales revenue. Eventually, the company was able to set up a physical store and hire four extra employees. 

As for a Copperbelt-based enterprise called Northwold Investments Ltd. – a provider of weighing and measuring support solutions to mining hubs in Zambia and the Democratic Republic of Congo – Managing Partner Alinani Simumba expressed his appreciation for AGS for helping them manage their customers more systematically.

“Our customer retention ability has improved [as] we now run statistics in [the customer relationship management database] to learn more about how we have supported all our customers,” he says. “The results are amazing – look at how our profitability and compliance have gone up over such a short period of implementing what we learnt from the AGS.” 

Panuka Farm also greatly benefited from AGS, particularly from its expert market access services, The programme awarded the farm a market access facility to expand its market options, and eventually, when the farm’s linkages’ grew, so did its client base.

The AGS programme left a positive impact on MSMEs in Zambia, successfully promoting sustainable growth and innovation among businesses and startups. Continued support for this type of cooperation between Zambian and Finnish stakeholders accelerates the transition towards a balanced, commercially oriented relationship between the countries. But more importantly, it drives economic development for both, creating wealth and stability for its people.