Challenges and work in progress

In this fourth edition of BIO’s D&S report, we highlight to what extent BIO and its clients contribute to the SDGs. We provide concrete examples of BIO’s development effectiveness and underline the central role the private sector can play towards the 2030 Agenda.

However, challenges remain. While some are specific to BIO - such as increasing efficiency in information streamlining and collecting clients’ feedback - others - such as improving impact management and measurement - are shared with other European DFIs and development actors. In 2023, BIO investigated decent work and quality jobs for clients, investees, and contractors. This investigation revealed that BIO has some unique features (pragmatic and progressive approach, realistic and tailored decent work requirements for clients, streamlined monitoring practices, etc.) that make it well placed to contribute to the promotion of decent work in low- and middle-income countries. However, there is always room for improvement: BIO commits to further integrate decent work topics in strategic documents, update the decent work policy, and strengthen the decent work assessment, monitoring and investee capacity building. BIO remains committed to a progressive approach to living wages in its clients' value chains. BIO will focus on measuring its contribution to non-financial additionality, which refers to the positive social and environmental impacts beyond just financial returns. This will include assessing the impact of actions led through the BDSF and its technical assistance.

BIO’s mission is to support projects that create jobs, empower communities, and drive economic progress in developing countries. This underscores BIO’s commitment to promoting responsible investment that generates both financial returns and positive social outcomes.

BIO also signed a new management contract with the Belgian State in 2024. This contract includes a fit-for-purpose investment strategy designed to operationalise BIO's mandate and achieve its ten Strategic Impact Targets (SITs). The strategy prioritises economic, social, and environmental dimensions through an integrated approach. BIO will also update its Theory of Change (ToC) to ensure interventions contribute to the SDGs and SITs. Consequently, updates are needed to the Assessment, Monitoring and Evaluation (AME) framework and the procedures for addressing transversal topics, particularly decent work, climate and gender.

Finally, BIO actively seeks an open and constructive dialogue with civil society organisations and other relevant stakeholders. That is why, in 2023, BIO intensified its efforts by engaging NGOs through dedicated workshops, focusing on key themes such as agriculture and food security, climate action, decent work, and gender equality. In 2023, one of BIO’s investment officers continued to be seconded to Enabel Dakar office to support the deployment of their private sector development programme. Also with our colleagues of Enabel, BIO has cooperated to support the roll-out of CCB’s Sustainability Strategy for its supply chain. Enabel has been working with a group of cooperatives supplying cocoa to CCB to review and strengthen their governance practices. In parallel, BIO’s technical assistance contributed to the development of a traceability app that will allow cooperatives and CCB to trace their cocoa back to each parcel, and verify the risks of deforestation and child labour. Every three months, CCB, Enabel and BIO meet to ensure synergies and an aligned approach.

Building on these initiatives, BIO plans to host further workshops in 2024, fostering productive partnerships and a meaningful exchange of ideas.