Our investment strategy

In September 2019, the BIO Board of Directors approved the new Investment Strategy for 2019-2023.

Our investment strategy

The objective of this investment strategy is to set the goals and priorities for the coming 5 years. They will support the deployment of our organisation, taking into account the objectives of the Belgian Cooperation, the evolution of our ecosystem as well as some of our global challenges including climate change, rising inequalities and a new digital paradigm.

Vission, Mission and Theory of Change

BIO’s proposed vision and mission statements are in line with our Theory of Change and our commitment to contribute to the SDGs.

  • BIO’s vision: we aim to develop sustainable entrepreneurship in our countries of intervention and participate to create a world with No Poverty – SDG 1: economic growth must be inclusive to provide sustainable jobs and promote equality.
  • BIO’s mission: we contribute to sustainable human development in our countries of intervention by supporting the private sector via direct and indirect investments to develop targeted enterprises.

BIO’s Theory of Change has been revised to integrate the SDGs. It sets out the logic of our interventions by outlining causal linkages between inputs, outputs (delivered through a set of activities), outcomes and, finally, expected development impacts, i.e. inclusive and sustainable economic growth in line with SDG1.

  • The inputs provided by BIO, classified under three broad categories, are BIO’s funding, BIO’s in-house expertise, Development and Sustainability support
  • The outputs are the direct and indirect investments in Enterprises and MSMEs, in the following sectors: financial institutions, health & education, agri-value chain, renewable energy and energy efficiency and digital technology.

BIO’s activities related to these outputs are:

  • Loan provisions and equity participation
  • Governance: seats in Board/Advisory Committee when equity participation, legal covenants in contracts, formalisation of investees, …
  • E&S compliance: BIO’s E&S Policy and E&S contracting requirements
  • Technical Assistance and Feasibility Studies to support our clients and deliver value-added services, contributing to business sustainability
  • Development assessment: BIO’s development assessment framework (incl. BDGs)

The outcomes of BIO interventions lead to strengthened social inclusiveness, private sector growth and good environmental practices. At the level of the outcomes, the Theory of Change refers to a limited set of SDGs, with a deliberated focus on:

  • SDG5 Gender & SDG10 Reduced Inequalities for social inclusiveness;
  • SDG8 Decent work and economic growth & SDG9 Industry, Innovation and Infrastructure for private sector growth;
  • SDG7 Affordable and clean energy & SGD12 Responsible production and consumption for good environmental practices.

These SDGs are highlighted as they are the closest related to BIO Development Goals, it does not mean that the other SDGs are not taken into consideration as outcomes, but rather that they are transversal to BIO’s operations. At the level of our clients, these outcomes translate into increased economic activity, capacity and knowledge building, E&S practice improvements and other development effects.

Finally, BIO has been and will be working with many other actors to achieve its mission. In the next five years, cooperation with other European Development Finance Institutions (EDFIs), Multilateral Development Banks (MDBs), private investors and Belgian and international development actors will be strengthened (SDG17 Partnerships for the Goals).