The Belgian Investment Company for Developing Countries BIO is a European Development Finance Institution (DFI) focusing on direct and indirect investments in Small and Medium Enterprises (SMEs) across the world.
The company pays particular attention to Belgian Development Cooperation partner countries and to less developed countries. Last year, its investment portfolio expanded by 22 new projects, amounting to 150 million EUROS and thus an impressive total of 147 projects, worth over 750 million EUROS, was reached. This article raises the curtain on BIO’s investment activity and its impact.
At BIO, development projects are encouraged within the framework of the Sustainable Development Goals (SDGs) adopted by the United Nations in 2015. Its current investments contribute to 6 out of 17 SDGs but, depending on the sector, the company can support additional goals. Right now, the funding institution contributes to the goals of ending poverty in all its forms, achieving gender equality, affordable and clean energy, local economic growth, infrastructure, innovation and reduced inequalities within and among countries. The sectors that are dominant in BIO investment patterns are the financial sector, infrastructure (power), agribusiness and industry/manufacturing.
The geography of the company’s activity is vast: there are 52 states eligible for its assistance. The BIO team possesses in-depth knowledge about Central Africa and this region dominates in the company’s investment portfolio with over 40% of activity concentrated there. There are 26 eligible countries on the African continent that BIO can offer help to. In 2018, the company signed investments totaling over 18 million euros in this region, focusing on SMEs development, investment companies and funds, the health and education sectors and the infrastructure sector.
BIO’s investment geography also extends to the Asian continent covering countries such as Bangladesh, Cambodia, India, Indonesia, Laos, Mongolia, Myanmar, Nepal, the Philippines, Sri Lanka and Vietnam. The company reported almost 40 million EUROS worth of investments in Mongolia, India and Sri Lanka in 2018, mostly in assistance with microfinancing and non-banking financial institutions.
The fact that BIO represents Belgium, which has age-old links to Latin America, explains the company’s investment activity in over 10 eligible countries on that continent. BIO’s investments in this region reached 31 million EUROS in 2018 alone, covering the energy, financial and SMEs sectors.
Obviously, the development generated by BIO through the projects it finances, as well as the effects of the aid investments, which the company calls Key Development Indicators, are closely monitored and reported to the stakeholders. Looking at the figures from the international funding institution’s latest report, BIO’s contribution has been significant: it contributed to creating or maintaining over 180,000 jobs (89,000 of which are linked to direct investments in enterprises, infrastructure projects and financial institutions), out of which more than a third are occupied by women. In addition, BIO contributed to the financial inclusion of thousands of people by supporting financial institutions. In the energy sectors, BIO contributed to the production of more than 14.000 GWh, thus avoiding the emission of more than 2.8 million tons of CO2.
BIO is an important player on the global development landscape. Discovering and learning about similar companies and international funding opportunities, as well as projects they encourage, is much easier with developmentaid.org.
