Role of Private Equity in National Development: A Case Study of Zambia

Abstract

Private equity (PE) is a crucial financing tool for business expansion and sector diversification in developing economies, such as Zambia. It improves efficiency, boosts financial performance, and supports job creation. The study analyzed PE's impact on Zambia's development, finding that PE-backed companies experience faster growth, improved governance, and competitiveness, particularly in the agriculture, infrastructure, and manufacturing sectors. However, barriers such as regulatory inefficiencies, shallow capital markets, and economic instability hinder the effectiveness of PE. To promote PE growth, the study recommends strengthening the legal and regulatory environment, expanding capital markets, encouraging institutional investor participation, and providing government incentives, as well as improving financial infrastructure.

Keywords:       Private Equity, Business Growth, Employment Generation, Sectoral Development, Regulatory Barriers