BIO fulfils its mission to support the private sector by being a reliable financial partner and by ensuring that its investments have a lasting positive impact on economic growth and the improvement of living conditions in the countries where it operates.
To this end, BIO takes into account a few fundamental development indicators, such as social impact (the development of lasting employment, compliance with social regulations), economic impact (the profitability of the project and the generation of tax revenues, impact on the sector, development of the financial market, etc.), environmental impact and the impact in terms of governance (responsible management). A series of added value indicators also set out to determine to what extent BIO has played a strategic role within the framework of an investment project, either by acting as a pioneer, by attracting other investors, or by making a significant contribution to the strengthening of the sector or its credibility.
Where job creation is concerned, it is reasonable to believe that those who have access to paid work on a lasting basis will help to ease the poverty within their own family and then in the community in which they live.
Similarly, an investment project that succeeds will create wealth and reduce poverty in its environment, among its subcontractors and partners, and even beyond, in the society in which it is implemented.
BIO uses a new tool in order to evaluate the impact of its investment projects. This tool (Geschäftspolitishes Projectrating: GPR ©), was developed by the Deutsche Entwicklungsgesellschaft (DEG) and is currently being implemented by other DFIs in Europe.
This instrument measures 4 factors:
- the economic viability of the project
- its developmental impact*
- strategic role of BIO*
- the profitability of the investment.
Evaluation criteria for each of the factors measured form a grid on the basis of which the projects and investments are rated (6 categories, from “very good” to “insufficient”. The GPR is applied to every project throughout the whole investment process, from identification to structuring of the investment and up until its exit from the portfolio.
The reports on the impact of BIO investments on development are available (see right column).
*BIO only applies these 2 factors.