UK Notes Zambia’s Economic Diversification Potential
Muvi TV, March 2017
Investing actively in scalable start-up projects.
Working alongside strong partners to grow companies into industry leaders.
Creating long-term value by creating sustainable jobs and contributing to economic growth.
The investment decision at Kukula Seed is governed by two fundamental objectives; long-term value creation and social impact. Our focus is on creating long-term jobs, so we look for projects that are financially viable and have a high growth potential.
When selecting new investments, we look for opportunities in the market that we can fill by creating a venture with a technically competent partner.
The ideal portfolio company satisfies six important criteria:
Kukula Seed invests actively in scalable start-up projects. We believe that simply providing equity or loan facilities, as a silent partner does not add sufficient value when building an SME or to the investors of the fund. Rather than simply investing in companies, we are creating companies and acting as an incubator alongside technically competent partners.
Kukula Seed invests in projects with strong potential for long-term value creation. We work alongside each partner to build up a strong team, which can grow the company long-term. Through our deep involvement in the management, administration and operation of our portfolio companies, Kukula Seed seeks to grow “seeds” into medium to large sized companies within three years.
Kukula Seed invests in projects that have the scope to become industry leaders. We will always favour investments that promise a high level of sustainable job creation based on strong capacity building of technical-, practical- and problem solving skills, with a significant proportion of jobs created being for women.
We strive to deliver the highest possible financial returns to our investors and do so in a sustainable and responsible manner.
Niels is Managing Director of Kukula Seed and one of the co-founders of Kukula Capital and has worked as a full team member since 2013. Previously, Niels was CEO and co-founder of a Danish construction company and co-founder of Preseed, a Danish incubator company.
Niels holds a Bachelor of Science in International Business from Copenhagen Business School, Denmark, and the European Business School, London, UK.
Team Leader Solwezi
Peter is responsible for managing the Solwezi based portfolio companies. His focus is on implementation, stakeholder management and operations.
Previously, Peter worked for Focus Financial Services as Relationship Manager and at Zambezi Portland Cement as Sales and Marketing Officer.
Peter holds a Bachelor of Arts in Social Economic Development Studies from the University of Zambia.
Senior Project Manager
Josephat is a Senior Associate at Kukula Seed, where he works with project management for Kukula Seed portfolio companies. His focus is on administrative and accounting as well as business development functions.
Prior to joining Kukula Seed, Josephat worked at Avantech Mining as a project accountant, BIA Zambia as Country Accountant, as well as Moolmans Mining Company as a creditors controller.
Josephat holds a Bachelor in Finance and Accounting from Cambridge University and has acquired ACCA Level 1 & 2 from Zambia Institute of Management.
Senior Project Manager
Floyd is a project associate for Kukula Seed portfolio companies. His focus is on implementation, sales, and operations.
Previously, Floyd worked for Budget Stores as a Branch Manager and at Innovate General Insurance as a Senior Sales Associate.
Floyd holds an Advanced Business Diploma in Business & Project Management from Zambia Institute of Management.
Senior Project Manager
Peter is responsible for implementation and business development of Kukula Seed portfolio companies.
Prior to joining Kukula, Peter worked in the cattle industry in Zambia and as an assistant farm manager in Australia.
Peter holds a bachelor’s degree in agriculture and is currently finishing a degree in Agricultural Economics from the University of Copenhagen.
Junior Project Manager
Lulu is responsible for managing the development of Kunzubo and its tenants. She majored in development studies and minored in gender studies at the University of Zambia.
Senior Associate Business Development
Steffen heads business development at Kukula Seed and Kukula Capital.
Previously, he worked as a Business Developer at Founders a Danish venture capital fund, funded by Kirkbi (LEGO), William Demand & Bestseller. Steffen was also a co-founding partner of a consultancy company, developing tailor-made Microsoft Excel solutions and is the author of a book about budgets in Excel.
Steffen holds a Master of Science in Applied Economics & Finance from Copenhagen Business School, Denmark and from Stanford University, USA.
Ken joined Kukula Seed in 2013.
His main responsibilities include daily filing for portfolio companies, daily banking interaction, and statutory submissions.
Velindah is responsible for all secretarial duties at Kukula Seed. She has a diploma in business administration.
Head of Accounts
Chilufya heads the accounting team that supports both Kukula Seed and Kukula Capital.
She joined Kukula as Head of Accounts in 2015. She is responsible for preparing accounts and for internal controls for Kukula Seed and associated companies. Prior to joining Kukula, she worked as a senior accountant for KPMG and had previously worked as an accountant for Ernst and Young. Chilufya is a member of the Association of Chartered Certified Accountants (ACCA) and Zambia Institute of Chartered Accountants (ZICA).
Philip supports the accounting team being responsible for producing and maintaining financial management reports, consults portfolio companies in best practices and is also responsible for process implementations and process management in financial procedures throughout the organisation
Philip holds a B.Sc. in Business Administration from Aarhus Business School, Denmark and LUISS Business School, Italy as well as an M.Sc. in Finance and Accounting from Copenhagen Business School, Denmark.
Administration & Compliance Officer
Siphiwe’s responsibilities at Kukula Seed and Kukula Capital mainly include attending to compliance issues, administrative activities, preparing daily transactions, and organisational tasks.
Siphiwe has a B.Sc. in Natural Resource and Environmental Management from the University of Zambia and is currently pursuing a Master’s in Business Administration from Copperbelt University.
Martin supports both Kukula Seed and Kukula Capital as an accountant. He is responsible for preparing accounts and for monitoring internal controls for Kukula and associated companies. Prior to joining Kukula, he worked as Accounts Assistant for BDO Zambia and previously as Assistant Accountant for E.Minja and Company Chartered Accountants.
Martin is a member of the Association of Chartered Certified Accountants (ACCA) and Zambia Institute of Chartered Accountants (ZICA).
Innocent joined Kukula as Accounts & Administration Assistant in 2016. He is responsible for updating and uploading all related taxes and assisting in external audits for Kukula and associated companies.
Prior to joining Kukula, he worked as an accountant for the Voice newspaper and had previously worked as an assistant accountant for Autopaintique. Innocent is a student member of the Association of Chartered Certified Accountants (ACCA) and Zambia Institute of Chartered Accountants (ZICA).
Kukula Seed was established in January 2013. Its purpose is to actively incubate start-up companies to positively impact the surroundings. The investment size is typically between 1 and 5 million Kwacha in a combination of debt and equity. Kukula Seed predominantly focuses on the North-Western Province of Zambia.
In 2015 Kukula Seed set up a partnership with the UK Department for International Development (DFID) to provide much needed finance to small businesses in Zambia’s North Western Province. This innovative partnership seeks to jointly invest in scalable enterprises that can create jobs – ensuring long-term social impact and financial return.
Kukula Seed is a sister company to Kukula Capital, one of Zambia’s leading venture finance and private equity firms. The name Kukula is associated with growth in the local dialects of Zambia.
With offices in Lusaka and Solwezi we have a strong local understanding and network, which enables Kukula Seed to identify projects with attractive long-term growth prospects, securing a strong deal flow.
Kukula Seed invests actively alongside technically strong partners within the specific industry. The target is to create financially viable medium to large sized companies, which provide long-term job opportunities and positively impact the growth and financial diversity of Zambia.
Kukula Capital, a sister company to Kukula Seed, is a leading venture finance and private equity firm in Zambia. The company operates under two main business areas: Fund Management and Advisory. They act as fund manager to Kukula Fund I, where they invest in Zambian growth companies with capital and expertise.
Their aim is to build a diversified portfolio of investments and provide exceptional financial and social returns for their investors whilst creating long-term value for the portfolio companies. Through their advisory services, they enable investors to invest alongside Kukula Fund investments and allow international companies to penetrate the Zambian market.
Kukula Capital is a Joint Venture between Danish and Zambian partners and was founded in 2009. The company is regulated by the Securities and Exchange Commission of Zambia.
Zambia’s North-Western Province, dubbed “the new Copperbelt”, is one of the most scarcely populated with just over 800,000 inhabitants, yet fastest developing regions in Zambia. In the last fifteen years it has seen rapid economic and social development, population growth and improved infrastructure, due to the expansion of three major copper mines – Kansanshi, Kalumbila and Lumwana.
This development has in turn encouraged a large amount of investment from both foreign and local businesses, many of which supply the mines. Solwezi is the provincial capital of the North-Western province, and is the hub of most of its activity.
The construction of schools, houses, hospitals and commercial buildings has driven the economy forward further, and the area is fast becoming the most prosperous in Zambia. However prices of commodities are high. There are no commercial farms in the area and most vegetables and other necessities are imported into the province. This presents huge opportunities for local enterprises, to supply not only the local market, but also bordering Katanga in the Southern Province of Congo, with a population of 10,000,000, who import most of their produce.
Bresmar Building Materials, founded in 2013, is based in Solwezi. BBM started as a joint venture between Kukula Seed and Solwezi based entrepreneur Brenda Kunda.
The company was established with the purpose of supplying quality aggregates to the NW Province. Since February 2015 the main focus has been on producing silica sand and stone, which is used in the copper smelting process. BBM is the first large-scale producer of silica in the NW Province.
A Solwezi-based real estate company, established in 2014, working to develop quality projects in both the residential and commercial market.
Our projects include private housing, an SME business centre, as well as a business park. All projects are located along the important Kansanshi Road.
Kunzubo aims to help grow the local business environment through real estate offerings, services and inspiring environments.
Bumi is a Zambian based project and product founded by Mr. Khama Hachunde in partnership with Kukula Seed. The company has a sincere interest in women’s health care.
According to the WHO, 52% of women suffer from gynaecological diseases caused by the use of substandard pads. Gender-based violence is often rooted in questions and discussions over gynaecological problems.
Bumi gives Zambian women access to the best quality sanitation pads at affordable prices so that women now can hope for improved lives and livelihoods.
Betternow Finance Company (BFC) is one in five Zambian microfinance companies.
It helps ordinary people finance their entrepreneurial ventures at the benefit of the entrepreneur and the local communities. Giving good start-up businesses access to the first critical capital is often the helping hand needed to kick-start a prosperous growth as they can accelerate processing of orders.
BFC will position itself to contribute towards the growth of the financial services sector through responsible and inclusive lending for change.
BFC Solwezi aims to unlock the potential in local suppliers by helping them with working capital.
Inde Credit Company is a joint venture between Kukula Seed, Michael Kroupnik and BFC. The company is operating under BFC’s license and is promoted as BFC Solwezi. The company is established to provide much needed working capital to SMEs in the Copperbelt and NW Province.
Many local SMEs struggle to permanently supply larger off-takers, hereunder the mines, as the payment terms are often long. Contracts are therefore lost to larger international companies with better financial backing.
Eagle Metal Fabrication was established as a partnership between Kukula Seed and WJ Engineering. The company’s workshop is located centrally on Kansanshi Road in Solwezi.
The company aims to service the NW market for all types of metal works, both repairs and fabrication of new items. This will be done through a state-of-the art workshop with a broad variety of machinery and a very strong technical team.
Currently, clients of all sizes are getting their metal works done by suppliers more than 200km outside Solwezi and 400km from Kalumbila. Not only does this give high transportation costs, but it also means that production equipment has significantly longer down-time than necessary.
Established in 2016, Live Clean develops and operates public toilet and shower facilities that are clean, hygienic, and affordable for people living in the peri-urban areas of Zambia.
The project works to ensure availability and sustainable management of sanitation and water. There is an urgent need to improve sanitation in Zambia. Over 70% of the population live with poor sanitation, which breeds infectious diseases. The facilities are designed to minimise environmental impact as much as possible and water used on site is therefore recycled and reused.
Muvi TV, March 2017
Solwezi Today, January 2017
By John MuBambe
A new business centre to serve small and medium enterprises (SMEs) has opened on Solwezi’s Kansanshi Road, fully furnished with 15 workspaces and 13 private offices.
Kunzubo Offices providing quality offices with serviced desks in a dynamic, stimulating and professional business environment, sprung to life wit Solwezi Disctrict Commissioner Rosemary Kamalonga unveiling the offices on December 15.
Kamalonga said Kunzubo Offices would offer good infrastructure for SMEs, which will help them grow faster.
“For Government, private sector development is important and we strongly support initiatives like Kunzubo Offices,” said Kamalonga.
The business centre is a fully furnished and equipped workspace with modern amenities and business services. Kunzubo offers inspiring office space where entrepreneurs and SMEs can focus on developing their business among like-minded persons.
President of North-Western Chamber of Commerce and Industry (NWCCI) Josephine Makundo expressed confidence in the new structure.
“We are convinced that the promotion and enhancement of SMEs through effective business support by providing quality offices at affordable prices and with ICT facilities will contribute to the growth of the SMEs.
“A clean and neat work environment provides ability to succeed. The centre will enhance networking among the SMEs and in addition this will be a one-stop shop with access to the chamber as well.”
Fortune World Managing Director Mukumbi Kafuta commended the project’s management saying the initiative had provided convenient office space with free internet and conference facilities.
“There will be more interaction with financiers and SMEs to provide market linkages, more business opportunities and ultimately, enhanced economic growth in Solwezi,” he said.
And Kansanshi Mine’s Manager for Public Relations Godfrey Msiska observed that the Kunzubo integrated business office model is an innovative solution to the problem of unaffordable accommodation which limits operations of most SMEs.
“Besides, SMEs will also enjoy access to Wifi/Internet service at no further cost. This will reduce their cost of doing business and contribute to the development of Solwezi, as more of them can now work in Solwezi more freely,” he said.
“Kansanshi Mining Plc welcomes Kunzubo Offices’ development as enhancement of local business development which is in line with the mine’s strategy,” said Msiska.
Kunzubo, a real-estate company, was established by Kukula Seed in 2014. Kukula Seed is partly backed by DFID which, through its Private Enterprise Programme Zambia (PEPZ), provides much-needed finance to create and accelerate new businesses in Zambia’s North-Western Province.
Peter Bwalya, Senior Associate at Kukula Seed, says the company offers a professional workspace that gives small businesses identity and pride, especially in their individual development stage.
“Kunzubo aims to help grow the local business environment through real estate services. We want to create inspiring environments and superb comforts that promote wellbeing and blossoming,” he said.
Martin Alsop, Resilience and Inclusive Growth Team Leader at DFID Zambia states: “We believe that SMEs need appropriate infrastructure and professional services to flourish and grow, and Kunzubo Offices help to do just that.”
On Thursday 15th December, Kunzubo opens its doors for SMEs and entrepreneurs in Solwezi. Located along the busy Kansanshi Road, Kunzubo Offices provide quality rental offices and serviced desks in a dynamic, stimulating and professional business environment. There are currently 15 workspaces in an open office layout and 13 private office spaces available.
The business centre is a fully furnished and equipped workspace with modern amenities and business services. Kunzubo is aiming to create an inspiring office space where entrepreneurs and SMEs can focus on developing their business and be around like-minded people every day.
President of North Western Chamber of Commerce and Industry (NWCCI) Mrs Josephine Makundo remarks, “We are convinced that the promotion and enhancement of SMEs through effective business support by providing quality offices at affordable prices and with ICT facilities will contribute to the growth of the SMEs – a clean neat work environment provides ability to succeed. The centre will enhance networking among the SMEs and in addition this will be a one stop shop with access to the chamber as well.”
The real-estate company, Kunzubo, was established by Kukula Seed in 2014. Kukula Seed is partly backed by DFID through its Private Enterprise Programme Zambia (PEPZ) to provide much needed finance to create and accelerate new businesses in Zambia’s North Western Province.
“Focusing on and helping SMEs grow is very much in line with our objectives. We continuously try to lift the bar and create innovative projects,” says Niels Bojsen, Managing Director of Kukula Seed. He explains, “Kunzubo aims to help grow the local business environment through real estate offerings and services. We want to create inspiring environments and superb comforts that promote wellbeing and blossoming.”
“It is part of our value statement in Kukula Seed to be pragmatic in all our business projects and objectives. In this regard, we are offering a solution for SMEs to operate in a professional workspace that gives their businesses identity and pride especially in their individual development stage,” explains Peter Bwalya, Senior Associate at Kukula Seed.
“We believe that SMEs need appropriate infrastructure and professional services to flourish and grow, and Kunzubo Offices help to do just that,” says Martin Alsop, Resilience & Inclusive Growth Team Leader at DFID Zambia.
We are a Solwezi-based real estate company, established by Kukula Seed in 2014, working to develop quality projects in both the residential and commercial market. Our current projects are located along the central Kansanshi Road. We use local contractors and materials to build and renovate our sites.
More information is available at www.kunzubo.com
The Department for International Development (DFID) leads the UK’s work to end extreme poverty. DFID is ending the need to aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit.
More information is available at www.dfid.gov.uk
The Private Enterprise Programme Zambia is funded by UK Aid and aims to build and strengthen the capacity of Zambian micro, small and medium enterprises to create jobs and contribute to the diversification of the economy. It is being implemented in Zambia by Nathan Associates London Ltd.
This week saw the official opening of Eagle Metal Fabrication in Solwezi.
Eagle Metal is a joint venture between Kukula Seed and WJ Engineering, who have been operating in the industry in Chingola since 1968.
The workshop was developed with the objective of offering the market a higher level of excellence of all kinds of metal fabrication in the shortest possible time and at competitive prices.
For more information, please visit Eagle Metal’s website: www.eaglemetal.co
Daily Mail, November 2015
DFID, Kukula Seed to spend K80M in North-West
Money meant to boost economic activity in the area.
The Department for International Development (DFID) and Kukula Seed, an investment firm, will spend over K80 million in enterprises in North-Western Province to boost economic activity in the area.
Under the programme, which is expected to benefits 23 enterprises, Prospero, an investment company established and funded by DFID and Kukula Seed will provide resources to create new businesses in North-Western Province.
DFID Zambia head Emma Donnellly said a commercially viable investment strategy with risk-sharing is the optimal way of creating long-term social impact and financial returns.
“The combination of DFID capital, Kukula Seed’s deep knowledge of the Zambian SME [small and medium-scale enterprises] and targeted technical assistance, will provide exactly the support that Zambian entrepreneurs and small businesses tell us they need to grow and create jobs” she said during the launch of the programme on Tuesday evening. DFID private sector development advisor Martin Alsop said the development will create 385 direct jobs, with 40% of those openings going to women.
Mr. Alsop said the development will also result in additional investment of about US$9.5 million in the province.
“This part of the overall DFID private enterprise programme which will create 37,000 jobs over the next five years,” he said.
At the same occasion, Kukula Seed Managing Director Niels Bojsen said the development will create sustainable jobs, economic growth and diversification by investing actively in new business ventures.
Private Enterprises Programme Zambia (PEPZ) programme manager Bayo Akindeinde also said the organisations, which is also funded by DFID programme, will continue to support inclusive growth.
“PEPZ wants to create business linkages which will enhance development in the country,” he said.
Solwezi Today, November 2015
North-West SMEs on growth path
The United Kingdom Department for International Aid (DFID) is living up to the maxim that if you give a man a fish, you will feed him for a day, but if you teach him how to fish you will feed him forever. As Zambia repositions itself for diversification of the economy, away from over-dependency on copper, a new partnership has emerged between DFID and Kukula Seed aimed at creating job-creating entrepreneurship towards the development of the North-Western Province.
DFID has partnered with Kukula Seed to finance small businesses in North-Western Province in an effort to build their capacity for future growth.
Prospero, an investment company established and funded by DFID, will partner with Kukula Seed to provide resources valued at K80 million to create new successful businesses in the province.
Nathan Associates London Limited is the implementer of the programme for DFID which spearheads the UK’s work to end extreme poverty.
During the partnership ceremony between DFID and Kukula Seed in Lusaka recently, it emerged that the geographical focus will initially be North-Western Province, primarily centred on Solwezi where Kukula Seed already has a strong operational presence.
The time horizon is three years to be fully invested. There are plans for expansion with similar facilities into other regions of Zambia if the initiative is a success.
This is good news that has elated Emma Donnelly, the head of DFID Zambia, as the partnership is set to make profound changes for small businesses in the province.
“I am very excited that DFID is investing in Prospero. The combination of DFID capital, Kukula Seed’s deep knowledge of the Zambian SME sector and targeted technical assistance will provide exactly the support that Zambian entrepreneurs and small businesses tell us they need in order to grow and create jobs,” says Donnelly.
The partners believe that a commercially viable investment strategy with risk-sharing is the optimal way of creating both long-term social impact and financial return.
Kukula Seed invests actively, which means that it will bring an interim management team to work alongside each entrepreneur to build up a strong permanent team, which would grow the company in the long run.
“The aim is to create sustainable jobs, economic growth and diversification by investing actively into new business ventures that have growth potential,” says Niels Bojsen, Managing Director of Kukula Seed.
The initiative is part of DFID’s Private Enterprise Programme (PEP Zambia), which is working to strengthen the capacity of Zambian micro, small and medium businesses to create jobs and contribute to the diversification of the economy.
Nathan Associates London Limited is the implementer of the programme for DFIF which spearheads the UK’s work to end extreme poverty. DFID reduces the need for international aid by creating jobs, unlocking the potential of girls and women, and helping to save lives when humanitarian emergencies hit.
Kukula Seed invests actively in scalable start-up projects. The projects have scope to become industry leaders and positively impact their surroundings by creating sustainable jobs and contribute to economic growth.
Earlier this year the businesses plan competition Nyamuka Zambia was successfully launched with more than 1,000 business plans submitted from all over Zambia.