Annual report

As Minister for Development Cooperation, I strongly believe in international solidarity to achieve the objectives of the Sustainable Development Goals. The challenges the world is facing, from climate change and poverty to inequalities, respect for human rights and the rule of law, transcend national borders. This is why a shared vision for a more just and sustainable future is of paramount importance. BIO's work exemplifies this: By partnering with private sector actors in developing countries, BIO stimulates sustainable investment that benefits local communities, and promotes inclusive economic growth through private sector development. By actively investing in companies and entrepreneurs who are driving positive change, BIO makes a real difference in a world that is often grappling with instability and injustice. Through its engagement, BIO supports economic growth, creates jobs, promotes women's empowerment, and contributes to a more sustainable future.

Let me first thank Mr Luuk Zonneveld for the past eleven years as CEO of BIO. I would like to express my sincere gratitude to him for his dedicated leadership.

Let me also congratulate and welcome Mr Joris Totté as the new CEO of BIO since March 2024.

Since January 2024 BIO has a new management contract that will guide its work for the next five years. It is strongly focused on BIO’s role as public investor for sustainable development in often difficult circumstances. It should ensure fair labour practices and living wages for small producers in developing countries while respecting and advancing the principles of Decent Work. It promotes the responsible use of natural resources and the protection of biodiversity in investment decisions. It contributes to the fight against climate change. There is a strong focus on investments in Africa, the Least Developed Countries and countries in a fragile context.

All this should lead to investing in initiatives that bridge the gap between developed and developing countries and tackle inequalities within countries, while respecting and promoting human rights. Indeed, BIO has now integrated a human rights based approach in all its investments as part of its duty of care.

I am convinced that BIO will continue to be an important actor of our Belgian Development Cooperation and a driving force for sustainable development in the world.

While entrepreneurship plays a vital role in job creation for developing economies, strengthening the private sector as a whole offers BIO a powerful tool to tackle human development challenges like gender inequality, poverty, climate change, and economic inequality, with a particular focus on promoting decent work opportunities and easier access to social protection for all genders.

Let's illustrate this with some specific examples:

Envision a cocoa processing unit in rural Tiassalé, Côte d’Ivoire that directly employs 122 workers in this remote rural area with little industrialisation and limited job opportunities, indirectly providing opportunities to tens of thousands of small-scale cocoa producers and their families.

Picture a world where Mr Ananda Verma, driven by innovation, invents a horticultural platform, which captures real-time data on growing conditions from on-farm sensors to deliver advice to Mr Vaibhav Changdev Aringale, a small-scale farmer in the arid Indian countryside, allowing him to optimise water usage and combat pests more effectively.

Foresee a world where developing countries, that are particularly vulnerable to climate change, get a helping hand from dedicated impact investors to adapt to the changes and allowing them to reach the goals of the Paris Climate Agreement.

Imagine a world where Ms Rajani Srichandana, a farmer's wife from a rural family of ten, transcends the limitations of depending solely on farming income. Through financial literacy training, she gains the power to secure loans and launch a thriving grocery shop alongside a dairy business. Freed from the burden of local moneylenders, her family and community flourish.

Imagine over 75% of Ghana’s households stop relying on charcoal and kerosene as their primary sources of cooking fuel, instead, greatly reducing greenhouse gas emissions and helping reduce deforestation at an affordable price.

Imagine young people in DRC will have it easier to find a first job because they can acquire professional experience in a call centre where they pass through a basic customer service training, and acquire expertise and efficiency.

These aren't simply dreams on paper; they're tangible proof of BIO's impact in the field. Through direct and indirect investments in companies like Compagnie Cacaoyère du Bandama, Fasal (an Omnivore investment), Annapurna, Xpress Gas, and the Congo Call Center (an African Rivers Fund III initiative), BIO empowers African and Least Developed Country entrepreneurs. With the right framework and support, these businesses allow local innovators to thrive and achieve success on their own terms. Can you imagine a better project?

The past four years presented us with many challenges – a global pandemic, geopolitical turmoil, and the growing threat of climate change. Developing nations particularly, have faced the brunt of these hardships.

BIO managed to overcome these difficulties and is proud to report a return to profitability in 2023, achieving a positive balance of EUR 17.4 million. We exceeded our EUR 200 M target for new investment commitments, securing EUR 207.6 million. We also surpassed our target of approving 15 Business Development Support Fund (BDSF) projects, approving 16. BIO's financial health improved considerably in 2023. We project a net profit of at least EUR 15 M with a very low Cost of Risk. Finally, we’ve invested a lot of time in our stakeholder communication. We held several consultations with NGOs and other impact players.

2024 marks a turning point for BIO. We've secured a new management contract with the Belgian State for the period 2024-2028, with ten ambitious development goals that reflect the urgency of our time. The coming years, BIO will focus on the creation of decent jobs, reducing inequalities and fighting climate change. We will strive to invest 45% of our capital in Africa and 30% in Least Developed Countries. In addition we are strengthening our investment approach by integrating human rights principles and decent work practices into our investment strategy.

In 2024, building on our achievements of 2023, we aim to commit EUR 220 million in new impactful investments in local companies to realise this ambition.

BIO is starting an exciting new chapter in a rapidly changing world. With the return of geopolitics, BIO, as a national development finance institution, is a key player to advance the foreign policy and development priorities of Belgium. We will do this together with our European colleagues, as well as our Belgian key stakeholders.

I am confident that the BIO team possesses the resources, expertise, and global networks necessary to continue to contribute significantly to a more sustainable and equitable world.