Development cooperation is generally associated with humanitarian aid, NGOs or technical cooperation but much more rarely with the private sector. And yet, this sector plays a crucial role in a country’s economic and social development.

 

The dynamism of the informal economy in developing countries illustrates their strong potential for economic initiative. In these countries, where the State structures remain fragile and cannot guarantee a stable economic situation, access to long-term finance and capital, without which companies cannot grow, is limited or impossible for a large chunk of the population. In fact, the banking system is often unsuited to the needs of small entrepreneurs and does not allow the emergence of income-generating activities.

 

Support for the private sector is therefore an essential link in the development cooperation chain, as it drives economic growth. By producing goods and services, local enterprises help improve the population’s living standards, accelerate technological developments and lower prices by stimulating competition and increasing the country’s tax base, which is essential for the financing of infrastructures, education and health.

 

During its short existence, BIO has become a recognised player in the field of private sector development finance. BIO not only provides support for the microfinance sector, but has also undertaken to expand its initiatives in favour of SMEs and will continue to grow in this direction.