BIO has invested USD 13.6 M in BRAC International

The Belgian Investment Company for Developing Countries (BIO) has granted a loan of USD 13.6 M to BRAC International as part of a USD 32.3 M debt financing round together with Proparco, Ceniarth and Global Partnership. USD 20 M of this will be used to support the growth of the microfinance activity in Tanzania, with the remainder of the investment going to other Sub-Saharan African entities in Liberia and, Sierra Leone.

"The partnership with BIO and Proparco is more than just financial support; it’s a powerful endorsement of our work and a transformative milestone for BRAC’s initiatives in Tanzania and its sister companies across Africa,” says BRAC Tanzania CEO Marie-Marcelle Gerard. “Through this partnership, BRAC will broaden its reach and create impact by providing access to essential financial services to those who need them most, especially women and underserved communities.”

Microfinance and financial inclusion

BRAC was founded in Bangladesh in 1972 and is one of the largest, most innovative and impactful development organisations of the world. BRAC has been one of the pioneers of microfinance since it first started, and now operates in six countries outside of Bangladesh - Myanmar, Tanzania, Uganda, Rwanda, Sierra Leone and Liberia. Together, these entities, operated by BRAC International Holdings B.V., serve nearly 700,000 clients, 96% of whom are women.

BRAC International Microfinance’s mission is to provide a range of financial services responsibly to people at the bottom of the pyramid. It particularly focuses on women living in poverty in rural and hard-to-reach areas, to create self-employment opportunities, build financial resilience, and harness women’s entrepreneurial spirit by empowering them economically.

The BRAC microfinance institutions are targeting women and entrepreneurs with simplified & standardised products, granting loans of, on average, $200.

"We are proud of our investment in BRAC Tanzania," says Joris Totté, CEO of BIO. "By supporting BRAC's efforts to expand access to financial services, we are helping to empower thousands of individuals and families. This partnership underscores our commitment to driving financial inclusion and fostering economic growth in developing countries."

Financial inclusion empowers individuals and businesses, fosters economic growth, reduces poverty and promotes social equality. Microfinance institutions, like BRAC, can play a pivotal role in its promotion. At the end of 2023, 36 of BIO’s direct investments had financial inclusion as a primary goal, and we were directly and indirectly invested in 135 microfinance institutions, 41 one of which in least developed countries or fragile states.

“Belgian development cooperation has a special focus on the most disadvantaged. Financial inclusion empowers individuals and businesses at the bottom of the pyramid, fostering economic growth, reducing poverty and promoting social equality. Microfinance institutions play a pivotal role in this regard,” remarks Frank Vandenbroucke, Deputy Prime Minister and Minister of Social Affairs and Public Health, in charge of Development Cooperation and Major Cities Policy.