LUSAKA, Zambia – 28th May 2023 – Financial Insight Zambia hosted Episode 6 of FIZ Show where Alan Samuel Mwamulombe spoke to the National Coordinator of Zambia Business Angels Network Melanie Mchinzio on the importance of ZBAN in the development ecosystem.
Speaking on the FIZ Show interview held on 6th April 2023 in Lusaka, Melanie Mchinzio said that, Zambia business angels’ network is the first business network Zambia has ever had, which was established in 2021 in order to fill the major gap in the entrepreneurship ecosystem and significantly increase the number of enterprises that can attract impact investment.
“ZBAN is a positive contributor to the impact of investment ecosystem which offers financing in exchange for equity and supporting early-stage enterprises with a developed scalable model for starting and growing a local angel investment network. It is also a ‘member-led’ network of business angels – private individuals who invest their personal capital in helping early-stage ventures to grow. Our mission is to bring together individual capital, connections and mentorship for start-ups and early stage enterprises.” Mrs. Mchinzio added.
Following same interview, Mrs. Mchinzio stated that, any person is capable of becoming a member of ZBAN as long as they have the capacity to fit in. By capacity, a person needs to have at least a disposable income, passion for start-up and willing to give their time by providing business advice or mentorship. If they qualify that bill can apply through ZBAN website www.zban.org.zm and fill in the applicant form.
According to Mrs. Mchinzio, ZBAN has steadily been growing. Initially, business started operating with 27 angels and currently sitting at 39 with pending applications taking place at the background. It has also observed that the more word goes out there or people see that there is an avenue, the more it keeps on growing. Currently, ZBAN has both investors based in Zambia and those in a diaspora. It also has people doing analysis which makes work possible for any investor and enables them to see how their money grows and making a difference within economy in Africa and world at large.
ZBAN coordinator also made it clear that, they are aware of start-up capital challenges faced by many SMEs in Zambia. However, the required amounts for one to invest with ZBAN is not fixed. It varies and ranges from one way to the other. Speaking from experience, the deals that has been dealt with ranges from $1,000.00 dollars to $100,000.00dollars. Suffice to mention that, angels are able to syndicate depending on the size of the deal or start-up that pops up. Otherwise, most of the people or companies encountered by ZBAN asks for something between $15,000.00 dollars all the way up to $100,000.00 dollars and sometimes $250,000.00 dollars.
With regards to percentages that ZBAN have successfully been let go of by an investor, is ‘stat-up’ an online construction marketplace which was just starting and now in a process of raising enormous amount of money and recently qualified for what is called ‘catalytic Africa matching fund’, a company which doubles or triples the investment. This online construction market was awarded a matching fund which enabled them to succeed and grow their business. That is the first time it has ever happened in Zambia. Therefore, ZBAN is looking forward to seeing more initiatives and encouraging start-ups and SMEs that there is a way to grow business in a steady way.
In order avoid the dilemma of some founders and SMEs wanting to hold 100% of a small chunk, ZBAN does not dictate how much percentage a SMEs or founders’ needs to get at the end of a deal and from experience ZBAN have only given out equity ranging between 15 and 20 percent.
However, ZBAN is open to every single industry and it has noticed a lot of different kinds of technologies coming through the door for instance; heath tech, construction tech, and so on. There have also been a lot of agriculture, aqua culture and renewable energy as the most common ones popping up. It has always been encouraging to see how technology is literally fitting into different kinds of sector aspects. Mrs. Mchinzio said.
The most exciting thing is that, this year ZBAN has decided to start having master classes for everybody that has been to the pipeline, start-ups and the SMEs. The master classes will have several topics with experts who will be sitting down and talk to start-ups on some of the things they may have questions about.
It is also imperative to mention that, ZBAN is partnering with some exciting organisations that have agreed to sit down and host master classes and educate entrepreneurs on key issues to do with compliance and basic accountings. The processes and systems that every start-ups and SMEs needs is time to learn and grow their business because sometimes they do not have a chance to ask questions because of expert costs, which makes them think they cannot afford to have a business adviser.
In summing up, ZBAN is looking forward to start offering the master classes and see more investors as ZBAN vision is to oversee the development and implementation of effective mechanisms for the sustained growth and contribution of SMEs to Africa’s economic development.
