BIO welcomes new law

| Print |
On December 5th 2013, the Belgian Chamber of Representatives approved a new law modifying the Law of 2001 addressing the constitution of BIO, Belgian Investment Company for Developing Countries. BIO is delighted with this new law, which turns BIO into the reference on local private sector financing within development cooperation.

Developing a strong private sector is an important pillar for global, significant and sustainable improvements in the livelihoods of local households.

The new law recognizes that BIO, a development finance institute, is the instrument to support the private sector in developing countries. The reform forms an integral part of a modernization process of the Belgian development cooperation.

The new law confirms BIO’s specific mission to support local micro, small and medium sized companies as a cornerstone to sustainable socio-economic development. BIO is happy that its mandate has been extended to new social sectors, as well as the geographical concentration to about 50 countries, making upper middle income countries eligible for financing.

Within its financing policy and procedures, BIO will take into account the limitations, as prescribed by the law, concerning investments in or via States that are considered non transparent or countries with a limited or non existing tax law.

Furthermore, BIO is delighted the new law recognizes its role as one of the central tools of the Belgian development cooperation and appreciates the importance that is given to a better coherence and collaboration between the different Belgian actors within the sector, each with their own specific tasks and responsibilities.

In terms of the relation between BIO and the Ministry for Development Cooperation, the new law replaces the yearly conventions by five-yearly management contracts. These contracts will lead to a focus on the goals and results to be attained and will allow BIO to work with maximum efficiency. The Belgian State and BIO have already initiated the drafting of a first management contract for the period 2014-2018.

BIO will also take into account the results and recommendations of the 2nd phase of the Special Evaluation, which is focusing on the activities on the ground and which is currently in its final stage. This will be taken into account in the same way as with the recommendations set out in the 1st evaluation phase (institutional evaluation) that was published end 2012.

For further information contact the Communications Department: Ann Olek : - 02/778.99.93 or Lotje De Ridder : 02/778.99.60.

More on the first phase of the evaluation.

Read our Annual Report 2012 online.