Private Enterprise Programme Zambia (PEP-Z)
Funded by the UK Government’s Department for International Development (DFID), the Private Enterprise Programme-Zambia (PEP-Z) is a £14 million, five-year initiative that began in 2014 and runs until 2019. This project is being implemented by Nathan Associates London with an aim to create jobs and contribute to the diversification of the economy. PEP-Z is best known in Zambia for its Nyamuka business plan competition for start-up businesses, with a total prize fund of ZMW2,000,000.
Capacity building in Lusaka, Zambia
- Contribute to the creation of 40,600 full time jobs, 40% for women
- By 2019 MSMEs perceived as drivers of job creation and wealth
- Increase profit through greater efficiency
PEP-Z ‘s business linkage programme intervention aims to work on both demand and supply to deliver systemic, sustainable change. The programme provides technical assistance, mentoring and coaching to ensure local SME suppliers – particularly those that are committed to promoting opportunities for women to have access to corporate value chains and develop the capacity to service corporate sourcing and procurement requirements.
PEP-Z has designed a business linkage programme that will take high growth potential SMEs through the following steps
- Working on existing linkage initiatives of large buyers
- Referrals from Business Member Associations (BMAs) and ZDA
- Commitment on both sides
- Robust vetting criteria and good matching
- Mentoring/coaching of MSMEs and high quality services
- Access to finance
- A clear plan of action with accountability for results
- Managing expectations
The business linkage programme focuses on large firms that dominate the economy and local suppliers to help link and lead industries to sectors in which the poor are employed. The programme also aims to link the purchasing power of large businesses to develop micro, small and medium enterprises (MSMEs) and transfer technology to enable potentially transformative enterprises to fulfil their potential.
Business consultants in Lusaka, Zambia
- By 2019 attitudes towards entrepreneurship changed and improved
- Drive underlying market successes through an integrated approach
- Business plan competition to improve attitudes toward entrepreneurship
The MSMEs benefit through networking activities, market access analysis, project funding and public relations consultancy. PEP-Z aims to improve the quality, affordability, and access to business development services by providing grant support and providers towards either piloting new/innovative BDS, replicating successful BDS, or deepening BDS access.
Nyamuka Zambia business plan competition
The Nyamuka Zambia initiative influences ambitious businessmen and women to raise their game and take their ideas to the next level – creating employment and driving the economy forward in the process. It is also tasked with finding a new generation of business heroes and helping them put into place a game plan to grow their enterprises and tap into new markets that the Zambian economy needs.
Nyamuka Zambia provides all competitors with invaluable support and expertise through business planning workshops, coaching and mentoring sessions and many opportunities to network and connect with the wider world of business – so everyone is a winner, with the best talents being substantially rewarded for their innovative business ideas and plans.
Investment in Lusaka, Zambia
- Fund plans - create 500-1,000 jobs over a 5-year period
- Create £30 million in additional investment
- Create £47.6m in value added
PEP-Z is targeting an open fund of a ZMW 30m (Zambian Kwacha, $5m equivalent) pool of capital mandated to make investments in the range of ZMW 300k-1.2m ($50-200k equivalent) alongside a technical assistance facility of at least ZMW 15m ($2.5m) to provide ongoing business development services (BDS) to investee companies. This facility should be used to develop business skills and address the overarching concern that SMEs lack the business acumen needed to operate and utilize capital effectively.
The fund plans to target a social and economic impact of creating 500-1,000 jobs over a 5-year period. The actual impact in terms of jobs created and value-add per job will vary depending on which sectors the fund selects for investments. PEP-Z recommend that the fund should focus primarily on investing in agribusinesses and businesses in supermarket supply-chains, along with investments in SMEs supplying more capital-intensive sectors such as mining.