A new report finds that international finance institutions play a key role in catalyzing job creation and growth through the private sector in emerging markets, particularly as governments face increased pressure on public resources.The report, International Finance Institutions and Development through the Private Sector, was launched during the World Bank-IMF Annual Meetings. It was produced by 31 international finance institutions (IFIs). The private sector is recognized as a critical stakeholder and partner in economic development, a provider of income, jobs, goods, and services to enhance people's lives and help them escape poverty. Multilateral development banks and bilateral development finance institutions (together in this report called International Finance Institutions, or IFIs) play a significant role in supporting the private sector in developing countries. They provide critical capital, knowledge and partnerships, help manage risks, and catalyze the participation of others. They support the kind of entrepreneurial initiatives that help developing countries achieve sustainable economic growth.Yet the important development contributions that IFIs make when engaging with the private sector in developing economies are often not clear or adequately communicated to stakeholders and the public. It is the aim of this report to help bridge that gap to increase the information and understanding about both the value of the private sector in development, and the role of international development finance institutions in supporting development through the private sector.The report is a joint effort of over 20 multilateral and bilateral development institutions that have significant programs to promote private sector investment and assistance. This report was initiated under the sponsorship of the Private Sector Development Institutions Roundtable, which is an annual meeting of the heads of IFIs with a focus on the private sector, and was coordinated by the International Finance Corporation (IFC).Download full report here

Supporting SMEs and their growth

BIO is pleased to announce the first closing of the multi-sector private equity fund Maghreb Private Equity Fund III LLC (‘MPEF III’), with a size exceeding Euro 96 million of capital commitments alongside prestigious DFIs and institutional investors. MPEF III aims at financing Small and Medium Enterprises in Maghreb showing a strong growth potential and thus a direct impact on the local economy. MPEF III has been set up in the wake of the MPEF II fund in which BIO has already participated. Moreover, both Morocco and Algeria are partner countries of the Belgian Development Cooperation.

BIO participates in a loan facility of USD 91.25 million with the Emerging Africa Infrastructure Fund, the Netherlands Development Finance Company (FMO) and the African Development Bank to support the KivuWatt project, which aims at removing and processing otherwise hazardous methane gas trapped in the waters of Lake Kivu for use as fuel to generate critically needed electricity.Read full press release

BIO and other Global Institutions signed a loan agreement with an East-African railway company, to rehabilitate and upgrade its infrastructure in Kenya and Uganda. The project aims to transform the railway concession into a reliable and operating service for the benefit of the local population, thus boosting economic and social development in the region.

Promoting small-scale renewable energy

BIO has committed USD 3 million to Semsa, the independent developer of a hydroelectric project on the Mezapa River in the rural Department Atlantida, Honduras. The investment program involves the construction of a 9.4MW run-of-the river hydropower station, connected to the local grid. While meeting environmental concerns, the project reduces dependency on conventional fuel and improves infrastructure and employment for the local community.