Boosting Impact in Africa: How EFSD+ Guarantees and technical assistance help BIO increase impact for African SMEs in agri-value chains

EFSD+ guarantees

In late 2022, under the EU’s Global Gateway initiative, the EDFI Management Company (EDFI MC) was entrusted with administering a portfolio of EFSD+ guarantee programmes totaling €1.39 billion. Through these guarantees, EDFI MC allocates risk cover to eligible European Development Finance Institutions (EDFIs)—including BIO—enabling them to invest in high-impact projects that would otherwise be too risky to finance.

In addition to the guarantees, the EFSD+ guarantees come with a joint EDFI Technical Assistance (TA) Facility, also funded by the European Union. This TA facility allows European DFIs and their clients to combine financial instruments with tailored technical support in line with the 360º Global Gateway approach, strengthening project performance and improving long-term sustainability.

For BIO these guarantees combined with TA are in fact a gamechanger. They provide the risk mitigation needed to channel critical capital into some of the most challenging yet vital markets in Africa, particularly within the agricultural value chain. At the same time, they unlock a replicable model for sustainable development finance.

De-risking Agri-Value Chains in Kenya: The Limbua Example

A perfect illustration of this mechanism in action is BIO’s recent €2 million senior loan to Limbua Group Limited, a Kenyan agribusiness specialized in the production of organic macadamia nuts, mangoes, and avocados. BIO’s loan boosts the expansion of the company and will increase production capacity, digitalize operations, and deepen engagement with over 10,000 smallholder farmers. By promoting climate-smart organic farming and reducing post-harvest losses, the investment will also contribute directly to climate mitigation and rural prosperity.

This investment was made possible by the first-ever guarantee issued under the EDFI Transforming Global Value Chains (TGVC) Programme, one of the pillars of the EFSD+-EDFI guarantee program, which covered up to 70% of BIO’s loan. The TGVC guarantee mitigates the inherent risks of operating in such a context.

Thanks to the joint TA provided under the EFSD+-EDFI guarantee program, BIO was able to support Limbua to create the function of a Chief Financial Officer (CFO), strengthening financial governance of the company to improve performance, enhance compliance, support strategic growth, and drive sustainable impact for farmers and climate through greater transparency and investor confidence.

Beyond Agriculture: Supporting SMEs and Financial Institutions

While the TGVC window is crucial for agribusiness, BIO’s use of EFSD+ guarantees extends further. BIO actively utilises guarantees under the Micro, Small and Medium-sized Enterprise (MSME) pillar and the Renewable Energy Transition (RET) window. These allow BIO to de-risk investments not only in SMEs across various sectors but also in financial institutions that on-lend to local entrepreneurs. As of April 2026, in addition to Limbua in Kenya, 3 other companies’ investments were already covered by these guarantees (Glacier, Food’s Co and Bio Phyto) whilst 10 more investments already received final approval totalling 63 million euros. This coverage allows BIO to take on greater risk in terms of invested funds, knowing that a portion of the exposure is secured.

The strategic importance of these guarantees cannot be overstated. By covering a significant portion of the risk on individual loans, the EFSD+ guarantees allow BIO to increase the amounts of money it can confidently deploy. This leverage effect means that scarce public capital goes further, attracting additional private investment and scaling up development impact where it is needed most. This is a model to be duplicated across the development finance landscape.

The Perfect Complement: Technical Assistance Funding

The value of the EFSD+ framework is further amplified by its link to the Joint EDFI TA Facility, as illustrated in the case of Limbua. This TA funding, managed by BIO’s Business Development Support Fund team, under the supervision of DEG, serves a dual purpose:

1. It directly supports companies that obtain a BIO loan covered by the guarantees, helping them implement robust governance, adopt sustainable practices, optimise value chains, and pilot innovative solutions.

1. It has allowed BIO to increase its own internal capacities within the Impact and Sustainability department, ensuring that investments are not only financially sound but also deliver positive outcomes for communities.

For BIO, Technical Assistance is a true partnership. It helps clients meet global sustainability standards or pioneer climate-smart solutions—unlocking investment, boosting performance, and creating lasting impact

This collaborative European model, now bolstered by dedicated TA, is exactly the kind of bold step needed to make development finance drive lasting impact for communities worldwide.