BIO Development Goals
BIO uses its ex-ante development assessment tool to structure and
document the development rationale of any given investment. This is done
by judging how the investment will score on the BIO Development Goals
Every potential investment is assessed on each development goal as being primary, secondary, or not relevant. The tool also evaluates BIO's financial and non-financial additionality to the project, with a similar scoring methodology.
BIO Development goals
Local Economic Growth: contributes to job creation, SME growth and import/ export-effects
Private Sector Consolidation/ Innovation: brings know-how or new technologies; consolidates or structures the local market by creating upstream or downstream linkages between companies; contributes to the creation of new types of institutions or the availability of new or improved products
Financial Inclusion: provides financial, credit, savings, payment; transfer and insurance services to financially excluded segments of the population, including micro-entrepreneurs
Food Security & Rural Development: improves economic opportunities for smallholders, creates formal employment in rural areas and contributes to the availability of food in local markets
Access to Basic Services & Goods: provides basic services and goods for the population. These include energy, housing, water, health, education and communications, but not food and financial services
Fight Against Climate Change & Preservation of Natural Resources: improves energy efficiency and creates a supply of and access to
renewable energy; preserves natural resources, in particular forests and water
Promotion of ESG Best Practices: provides
opportunities to improve standards; or - if the investees already dispose
of excellent practices - to showcase them to peers
Gender: empowers and creates business opportunities for women
Financial: refers to additionality to the local market, through, e.g., tenor availability, type of collateral, gap financing, or stamp of approval
Non-Financial: refers to services beyond financial ones, such as improving ESG-practices, previously defined needs, or the provision of technical assistance
BIO's impact in 2018
BIO has the most impact on Local Economic Growth and Private Sector Consolidation and Innovation, mainly through better access to funding for MSMEs. This also creates jobs, supports SME growth, increases tax payments and improves the trade balance. Financial Inclusion remains a priority.
BIO directly invested only in one agriculture project (Babban Gona, Nigeria). However, indirectly, some private equity funds are active in agribusiness (Omnivore Partners, India) and some microfinance institutions (Enda,Tunisia) are lending in rural areas.
Access to Basic Services & Goods scores lower than last year because there were no new commitments in infrastructure. However, BIO has some impact on the health and education sectors through some private equity funds.
Given that no direct investments in renewable energy were approved in 2018, the Fight Against Climate Change and the Preservation of Natural Resources are scoring lower for the primary objective than in previous years.
The promotion of Gender Equality and Environmental, Social and Governance (ESG) Best Practices are transversal development objectives. They are mainly secondary investment objectives. Some 86% of the BIO projects have a positive impact on the promotion of ESG best practices. Either an investee company excels and serves as an example to its peers - or, when practices are not up to standard, BIO’s investment creates an opportunity for improvement.
Finally, more than 36% of BIO's projects incorporate specific gender-related goals through the prominent role women play in the governance of the company and the creation of economic opportunities.