Dear friends of BIO

The year 2025 unfolded against a backdrop of deep complexity. Across the globe, we witnessed a retrenchment of political ambition on sustainability, even as climate challenges intensified and inequalities deepened. Geopolitical uncertainty, financial exclusion, and fragile supply chains continued to test the resilience of the entrepreneurs and communities we serve.

Yet, in this risky environment, the role of the private sector as driver for development has never been more widely recognised—or more urgently needed. For development finance institutions like BIO, this is both a challenge and a call to action. It reaffirms our mandate: to channel long-term, patient capital where it is needed most, and to prove that investing in sustainable development is not just sound ethics, but also sound economics.

I am proud to report that 2025 was an exceptional year for BIO. We approved €235 million in new financing across 30 projects. A remarkable 25% increase in the number of approvals compared to the previous year and the highest level of net approvals since 2019. These investments are not merely statistics; they represent tangible progress toward the impact we set out to deliver. We are on track to meet most of our goals, with notable progress in job creation, climate finance, and climate adaptation. We have also moved forward on our commitment to reducing inequality both within and between countries. Investments in Least Developed Countries (LDCs) and fragile and conflict affected states (FCS) are at an all-time high, and we have made significant strides in gender-lens investing—57% of our investments in 2024–25 contribute to gender equality, exceeding the 40% target.

Geographically, our 2025 portfolio growth strongly reflects our strategic priorities. A historic 55% of approved investments were directed to Africa, well above our 45% benchmark. Additionally, we reached a major milestone with our second major approved investment in Ukraine after Bank Lviv —$6 million in the Rebuilding Ukraine Fund—demonstrating BIO’s readiness to operate in Fragile and Conflict affected States where resilient partners are needed most.

This strong performance is not achieved alone. It is the result of a deliberate and collaborative approach that lies at the heart of our identity. As the dedicated development finance instrument of the Belgian State, we actively work with DGD and Enabel, and with our Belgian NGOs and impact investors such as Kampani, Incofin, and Alterfin. Signing our investment in Kampani in 2025 exemplifies this logic: together, we bridge the gap between early-stage support and larger-scale financing, ensuring that companies receive the right capital at the right time. Minister Prévot captured this perfectly when he remarked,

At the European level, our role has also grown increasingly important. By deepening our collaboration with other DFIs and the European Commission, we are leveraging EU guarantees, mobilising private capital, and tackling challenges that no single institution can face alone. The EDFI Management Company and Association are key instruments in this shared European ambition.

As we look towards 2026, our mission feels more relevant than ever. We will build on the momentum of 2025, sharpening our focus on areas where we fell slightly short of our targets and continuing to embed the human rights-based approach we formally adopted this year.

Thank you to our dedicated team, whose passion and commitment made this record year possible. And thank you to our partners and clients, who walk this path with us every day.

Together, we are proving that finance, when deployed with purpose, can be a powerful force for good.

In 2025, BIO approved €235 million across 30 projects (up 25% from 22 approved projects in 2024) and signed 21 investments, reflecting strong demand, improved origination efficiency, and growing transaction complexity, while internal processes were strengthened to support timely execution. The year 2025 was marked by an increasingly diversified portfolio with a particular focus on Least Developed Countries (LDCs) and Fragile and Conflict-Affected States (FCS), strong growth of direct investments focusing on agriculture sector and finally important progress on inclusion of decent work and human rights considerations in our investment process.

Geographically, approvals continued to reflect BIO’s commitment to fight inequality by investing in LDCs, FCS and Lower Income Countries (LICs). In the 2024-2025 period combined, 67% of capital subsidies (code 5 investments) and 33% of capital investments (code 8 investments) were allocated to those regions (against BIO’s Strategic Impact Targets (SITs) of 50% and 15% and an overall 30% as indicated in the investment strategy). BIO also acted upon its commitment to invest in Africa, which received 55% of approvals, more than the 45% objective. Other notable milestones included the approval of a second major investment in Ukraine and two investments in the Democratic Republic of Congo, illustrating BIO’s readiness to invest in FCS.

Direct investments surged in 2025, with BIO approving 11 investments in enterprises—a sharp increase from just 2 the year before. This growth was driven primarily by investments in the agri-food value chain, including 'ECOM' (agricultural commodities), 'BIO Phyto' (organic fertilizer), and a renewed commitment to long-term client ‘La Laiterie du Berger’. BIO also expanded into the pharmaceutical sector with a new direct investment – ‘Orchidia’ in Egypt – and into the chemical sector with a loan to ‘Super Silica’, an agri-waste based green sodium silicate manufacturing plant in Chattogram, Bangladesh.

This strong growth in direct investments enabled BIO to make significant progress toward its Strategic Impact Targets (SITs) related to inclusive business and climate change. Inclusive business commitments are on track, reaching 69% against a 50% target for capital subsidies (code 5) and 29% against a 25% target for capital investments (code 8). Additionally, 35% of 2024–2025 commitments include adaptation actions, exceeding the 20% target.

BIO also furthered its’ efforts on decent work and human rights in 2025, adopting a new human rights-based approach and ensuring decent work-related improvements, especially for projects focusing on decent job creation. BIO’s most recent impact figures show that investments at the end of 2024 directly supported around 388,000 jobs and an estimated 10 million jobs indirectly. Notably, BIO also directly supports decent jobs in its portfolio companies through the implementation of (1) Environmental and Social Action Plans (ESAP) targeting the improvement of working conditions (55% of BIO’s clients under active E&S monitoring had an ESAP attached to their contract covering IFC Performance Standard 2 – working conditions) and (2) technical assistance projects targeting job quality (4 new projects were signed in 2025).

Taken together, the 2025 figures confirm that BIO delivers on its mandate. The institution remains firmly aligned with its strategic objectives and continues to strengthen its model based on risk, return, and impact. The detailed sections that follow provide a deeper look into BIO’s results for 2025 across approvals, signatures, and impact performance.

In total, BIO has now committed €1,200 M in development impact investments in 171 projects, meaning an increase of 10% from the previous year. This also means the highest amount of net approval since 2019.

In total, BIO now has 1,033 M€ in signed investments, representing 161 projects.

Exiting investment projects responsibly is essential to ensure that development impact endures beyond BIO’s involvement. To support this, BIO’s active monitoring focuses on keeping investee companies financially sound, well governed, and capable of operating sustainably. Responsible exits also protect local jobs created through the investments, allow to uphold environmental and social standards, safeguard BIO’s credibility as a public development institution, and allow for scarce public capital to be redeployed into new high-impact projects.

At the close of each project, BIO’s Impact team prepares a Project Completion Report (PCR): an internal end-term evaluation that combines monitoring data, internal reports, and stakeholder feedback to assess financial, business, environmental, social, and development outcomes. BIO has recently revised its PCR methodology to better draw lessons learnt and use them to improve strategic investment decisions and operational processes.

In 2025, BIO exited 15 investment projects: 2 direct investments, 10 financial institutions, and 3 funds, with an average investment duration of 7.5 years. Key lessons learnt from these exits included the need to continue to focus on improved governance and financial analysis, the opportunities to strengthen the additionality of environmental and social risk management support, and – in some cases - the persisting gaps between local practices and BIO’s standards.

Impact and sustainability at BIO refers to the integrated management of (1) environmental & social risks, (2) impact outcomes, and (3) value creation activities throughout the investment cycle. The presentation of BIO’s impact and sustainability performance in 2025 covers two distinct scopes: the newly approved and signed projects, and BIO’s entire portfolio. The first presents the results of the assessment of new commitments’ against the Strategic Impact Targets, the management of E&S risk and related requirements for signed projects, as well as additionality and newly approved BDSF projects. The second summarises the portfolio's contribution to the SDGs and E&S risk management on our portfolio. You can find more information on BIO’s impact framework here.

Overall, BIO continued to deliver promising results in 2025 as is shown in the figure and table below, assessing the contribution of BIO’s approved projects to the SITs cumulatively for 2024 and 2025. Note that the SITs are to be achieved cumulatively over the 5-year duration of the management contract (2024 – 2028).

As shown in the figures, BIO is largely on track to reach its targets for Job Creation (SIT1), Investments in LDCs/FCAS (SIT4), Inclusive Business (SIT5), Gender lens investing (SIT6), Climate Finance (SIT7), and Climate Adaptation actions (SIT8).

Performance in SME finance (SIT2) and Microfinance (SIT3) was slightly below expectations for the 2024-2025 period, mainly due to a lower share of investments in financial institutions, offering a clear area for renewed focus in 2026. The share of commitments including Ecological Sustainability actions (SIT9) remained just under target for 2024-2025, reflecting the emerging nature of biodiversity and environmental management as a priority topic in development finance.

Progress on the Business Development Support Fund (BDSF) objective (SIT10) is evolving as anticipated, with BIO already well positioned to exceed its long-term goal as projects advance through the investment cycle. In 2025, more investment projects already supported through the BDSF were approved, including the investments in Super Silica and Banco Popular.

As part of the impact and sustainability assessment, each investment is also evaluated on its additionality.

• BIO’s investments are financially additional either when private sector partners cannot obtain financing from local or international capital markets for a specific activity at the necessary terms or scale, or when they mobilise private sector finance that would otherwise not have been invested.
• In parallel, BIO delivers non-financial—or value—additionality when it contributes for instance to non-financial risk mitigation or capacity building alongside its investment— support that capital markets would not offer—ultimately leading to stronger development outcomes.

In 2025, all approved investments evidenced financial additionality. Non-financial additionality was also strong: 90% of investments attest to it, targeting improved E&S risk management, strengthened management and governance capacities, and progress on gender and climate topics. Many of these contributions are expected to materialise through the Business Development Support Fund, with several projects already supported or likely to receive targeted technical assistance.

The Business Development Support Fund (BDSF) goes beyond financing by providing the expertise businesses need to grow sustainably. Through co-funded Technical Assistance (TA), Feasibility Studies, and Investment Support, BIO helps companies overcome operational challenges, adopt sustainable practices, strengthen internal capacities, and unlock productivity gains. Sometimes, a small grant is the needed incentive to embed stronger commercial, financial, and sustainable practices.

In 2025, BIO approved 13 new projects for the BDSF, totalling €902,302. Note that for 2025, 5 out of 13 projects supported environmental and social risk management whilst the others focus on improving the company’s operational and financial management via improved risk management, financial management and developing new digital tools.

BIO measures the impact effectiveness of its investments through their contributions to the Sustainable Development Goals (SDGs), measured through the monitoring of a set of key indicators organised around the economic, social and environmental pillars of BIO's Strategic Impact Framework:

• Under the economic pillar, BIO monitors its contribution to job creation, SME finance, and microfinance (targeting SDG8, Decent Work and Economic Growth);
• Under the social pillar, BIO monitors how its investments reduce inequalities between countries (by focusing on LDCs/FCAS), within countries (by focusing on inclusive businesses) and support gender equality (targeting SDG10, Reduce Inequalities);
• Under the environmental pillar, BIO monitors how investments contribute to the transition towards low-carbon, resilient and ecologically sustainable economies (targeting SDG13, Climate Action).

Data disclaimer

The data are gathered through self-reporting from clients on a selected number of indicators using a standardised template. There is a one-year lag due to the time required for clients to provide yearly figures, and for BIO to verify, consolidate and analyse these data. Most figures are based on data reported by project / client and aggregated on a portfolio level. These are non-attributed figures and do not take BIO’s investment share into account. In other words, they capture the entire activity and development effects of the funded companies. BIO continuously aims to improve its data collection and reporting on the development effectiveness of its investments. This publication is based on the 109 reports (out of 125 expected) submitted to BIO. Another 27 projects are not included in the reporting because they are in distress or exempt from reporting.

BIO supports sustainable growth in target countries through the creation of new decent jobs and through the development of SME finance and microfinance. In 2024, directly supported portfolio companies generated 2,752 new jobs, representing a 7% net increase from 2023. As of end-2024, BIO’s investments supported 67,334 jobs through its direct investments (92% in financial institutions) and 320,809 jobs through investments in funds. Moreover, BIO’s investments also support more than 10 million indirect jobs*, largely driven by finance enabling effects of financial institutions.

In SME finance, BIO’s direct portfolio includes 24 SME investments totalling €63.2 million, primarily in agri-value chains, manufacturing, and services. Through 44 investment funds, BIO supports 397 SMEs across 14 sectors, with €2.1 billion deployed. Additionally, 38 financial institutions reached 188,628 SMEs with combined loan portfolios of €4.0 billion.

In microfinance, BIO directly supports 23 microfinance institutions (MFIs) and 11 other Financial Institutions (Fis) serving the microfinance segment, together deploying €2.9 billion in microloans to over 5.7 million microbusinesses, while client savings reached €25.3 billion. Nine investment funds channel €452 million to 127 MFIs, reaching 2.8 million microenterprises.

* Estimation calculated through Joint Impact Model Methodology | Joint Impact Model

BIO continued to honour its social mandate by directing capital to the world's most vulnerable markets, aimed at reducing inequalities between countries. As of end-2024, BIO holds 32 direct investments in Least Developed Countries (LDCs) and Fragile or Conflict-Affected Situations (FCAS), totalling €139.2 million (30% of the direct portfolio). These are primarily in financial institutions (44%) and infrastructure (43%), with 7 renewable energy projects supporting national grids. In addition, BIO invests indirectly through 12 funds (out of 60) whose core strategy focuses on LDCs/FCAS—11 of which target sub-Saharan Africa. These funds have deployed €839 million across 165 companies based in these challenging markets.

As part of the social pillar considerations, BIO also looks at several inclusivity aspects of the businesses it supports, with the ambition to reduce inequalities within countries. Based on sector and stakeholder mapping (rather than a comprehensive inclusive business analysis including value-add considerations), BIO directly supports 38 businesses that generate economic value while engaging low-income populations: 15 agribusinesses and 23 microfinance institutions (MFIs). Together, they reach 2,709 rural workers, 19,437 small-scale farmers, and 5.7 million microentrepreneurs.

Indirectly, 12 of BIO's 60 funds invest most of their capital in agribusinesses and/or MFIs. Applying the same methodological approach, the 240 entities supported through these funds reach an additional 112,190 rural workers, 3.1 million small-scale farmers, and 3.1 million microentrepreneurs, while generating over €1.1 billion in local tax revenues.

Specific attention is given to the inclusivity aspects related to gender equality, which is one of BIO's three transversal commitments. At the direct investment level, 39 of BIO's 82 direct investments support gender equality goals or align with 2X Challenge criteria, representing 45% of the direct portfolio. Within these direct investments, seven companies are owned or led by a woman, and nine microfinance institutions target an almost exclusively female clientele. On average, women hold 23% of board seats and 30% of C-suite management positions across directly supported companies. Directly financed companies support 33,158 jobs for women, accounting for 49% of total direct jobs. Furthermore, 8% of SME loans and 57% of microloans outstanding from supported financial institutions were directed to women entrepreneurs.

30 funds in BIO's portfolio support gender equality goals or align with 2X Challenge criteria at the fund-manager level. Among these fund managers, women hold 18% of partner and upper management positions and 39% of all employee roles. Across the 715 underlying investments, 63 companies are owned or led by a majority of women. On average, women hold 22% of board seats and 30% of C-suite management positions across indirectly supported companies. Indirectly financed companies support 112,096 jobs for women, representing 35% of total indirect jobs. Finally, 36% of SME loans and 27% of microloans outstanding from supported financial institutions were directed to women entrepreneurs.

BIO continues to drive climate action and ecological sustainability through direct and indirect investments in renewable energy, sustainable agriculture, and low-carbon / circular SMEs. At the end of 2024, BIO’s portfolio included 11 renewable energy projects with a combined installed capacity of 587 MW (44% solar, 30% hydro, 26% wind). These generated 639 GWh over the year— which corresponds to the annual consumption of 4.5 M people—while avoiding an estimated 262,937 tCO2eq. Five companies of BIO’s direct SME portfolio were certified by a relevant environmental standard that contributes to climate mitigation or ecological sustainability (e.g. organic, Fairtrade, FSC, etc.). On the enabling finance side, seven financial institutions in BIO's direct portfolio report that an average of 2% of their gross loan portfolios is allocated to green loans.

Indirectly, six BIO-funded channels invest most of their capital in projects substantially contributing to climate change mitigation and/or adaptation. For example, funds are deploying €476.2 million across 87 clean energy investees (923.9 MW, primarily solar at 41% and hydro at 36%). Reporting investees generated 1,242 GWh, equivalent of the annual consumption of 8.7 M people and avoiding approximately 470,000 tCO2eq.

Across the entire project portfolio, 81 projects are subject to active E&S monitoring. These include projects signed within the last three years, projects for which the ESAP has not yet been finalised, as well as projects that have experienced serious incidents.

BIO applies enhanced E&S monitoring to projects with particularly high E&S risks, especially when serious incidents occur, when clients breach BIO’s exclusion list, or when projects attract negative attention that could affect BIO’s reputation. Such projects are placed on the E&S Watchlist. In 2025, BIO recorded 25 serious incidents across its portfolio, and by yearend, four projects were being closely monitored under the BIO E&S Watchlist.

The year 2025 was a foundational year for establishing BIO's enhanced evaluation function. It has focused on developing a robust operational roadmap for BIO’s new evaluation plan and the launch of the procurement process for the upcoming independent end-beneficiary focus surveys, two per year expected from 2026 onwards. It is also worth noting that BIO hired its first dedicated Monitoring, Evaluation and Learning officer who will actively contribute to the implementation of evaluation activities.

BIO organises its investments into four clusters: Enterprises, Financial Institutions, Infrastructure, and Investment Companies & Funds. These clusters reflect BIO’s focus on supporting SMEs, strengthening access to finance, enabling essential infrastructure, and reaching businesses active on those themes through specialised funds.

In 2025, performance evolved in line with strategic priorities: Enterprise and Investment Companies and Funds activities continued to grow, Financial Institutions remained stable, and Infrastructure faced a more challenging pipeline, while still playing a key role in BIO’s mandate.

This part of the annual report dives deeper into BIO’s investments for each of the four clusters, highlighting the relevance of the departmental focus and giving more details on the investments as well as additional support provided through the Business Development Support Facility.

The table below illustrates the total approved investments in enterprises at BIO. Within investments in enterprises, next to the focus on SMEs, BIO has a clear focus on agriculture and food, whether it is directly in production, in transformation, in distribution, or in other adjacent industries. Next to a focus on agri-food, it is important to mention also BIO’s portfolio in manufacturing, not just of food products but also of pharmaceuticals and medical supplies for instance. Investments of BIO in manufacturing are strong contributors to decent job creation (SIT 1). In terms of geographic focus, most enterprise investments are made in Africa.

In terms of signed investments in financial institutions, BIO signed 8 such investments, totalling €69.25 million.

In terms of signed commitments in infrastructure, BIO signed 1 infrastructure investment for €12.8 million in information and communication in 2025.

BIO also signed 6 investments in investment companies & funds in 2025, totalling €46.6M.

BIO invests in Ecoa Burn in Kenya through its’ investment in the Spark+ Africa Fund.

Behind the record year 2025 stands a committed and engaged team which grew to 90 employees in 2025. With a balance of long-standing expertise and new talent, BIO’s staff demonstrated flexibility, cooperation, and a strong sense of ownership. Time spent together beyond daily operations, including a two-day team-building event and engagements with key stakeholders, strengthened alignment, collaboration, and shared understanding. These connections supported both our strong performance this year and our long-term ambitions.

As the Belgian State’s dedicated development finance instrument, BIO works alongside the DGD, Enabel, fellow Belgian impact investors, and civil society to maximise collective impact as part of Team Belgium. Though wholly owned by the State, BIO sees itself as accountable to a wider community—engaging actively with Belgian stakeholders to advance development goals. This commitment was underscored by four site visits by Deputy Prime Minister and Minister of Foreign Affairs, European Affairs and Development Cooperation Maxime Prévot, and Minister of Mobility, Climate and Ecological Transition Jean-Luc Crucke, as well as by BIO’s presentation of its annual results to the Parliamentary Foreign Affairs Committee, together with Enabel and the DGD.

In 2025, BIO—as investment arm of Belgian international development cooperation—actively participated in various other meetings and platforms. These included sessions of the Platform on Agriculture and Food Security and the Belgian Coordination Platform on Decent Work. Through its engagement in these activities, BIO demonstrates its commitment to strengthen its presence within the Belgian international cooperation ecosystem. This role was further reinforced in 2025 through BIO’s investment in Kampani.

In terms of partnerships, BIO also increasingly develops its activities as part of Team Europe and together with other members of the Association of European Development Finance Institutions (EDFI) which represents the 15 European bilateral development finance institutions. This does not only mean co-investing together with other EDFI members – in 2025, 55% of BIO’s investments were done jointly with other EDFI members – but also participating in the important work EDFI is doing in terms of knowledge exchange and capacity building amongst its members, as well as representing the interest of Development Finance Institutions (DFIs) at the European level. 2025 has been an interesting year in that sense, with a continued search to define ‘European Interest’ in European external action policies, pushed by the EU’s Global Gateway Initiative.

In addition to its European commitments, BIO also works alongside multilateral development banks, including the European Bank of Reconstruction and Development, the European Investment Bank, the African Development Bank, the International Finance Corporation and many others. BIO prioritises investments together with multilateral development banks similar to co-investments with other DFIs.

In addition, BIO also joined the World Bank Annual Meetings 2025 in Washington, D.C., where BIO’s CEO connected with DFI peers and World Bank leadership to advance key development priorities. BIO expressed concern that international policy attention to poverty eradication, climate, and gender equality is waning amid rising geopolitical tensions.

Information about BIO's management and governance bodies is available on the website here. In 2025, following the formation of a new government in February, the function of the government commissioner representing the Minister of Development Cooperation was assigned to Hannelore Delcour, with Tim Bogaert as her deputy. Eddy Van Der Meersch, who has served as government commissioner (representing the Minister for Budget) since 17 July 2021, continued in this role throughout 2025. Details on board members' remuneration are provided below.

_{Composition and remuneration of the Board of Directors}

Heidy Rombouts, Director General Development Cooperation and Humanitarian Aid, attends the board meetings as representative of the DGD and Jean Van Wetter, CEO of Enabel, is invited as an observer.

At the end of 2025, BIO had a total workforce of 90 employees (in Belgium and the local offices in Abidjan and Nairobi) of which 42 male and 48 female of 11 different nationalities. Including employees’ opinion in its overall management is vital to BIO. That’s why in 2025, BIO continued working on a safe, healthy and balanced working environment.. This is the result of the good social dialogue within the company and collaboration with employee representatives. BIO truly believes that a company that listens to its employees enables them to speak freely and can address their issues in line with BIO's core values.

In addition to BIO’s portfolio companies being required to provide an appropriate grievance mechanism for their stakeholders, BIO also maintains its own dedicated mechanism. BIO’s Grievance Mechanism is set up to respond in a timely manner to legitimate grievances and demands for redress by people affected or potentially affected by projects financed by BIO. The BIO Grievance Mechanism policy is available on BIO’s website and is overall managed by the BIO internal audit function to ensure independence and impartiality. In 2025, the BIO Grievance Mechanism recorded no eligible grievances.

The Belgian Investment Company for Developing Countries, BIO, is a development finance institution established in 2001 by the Belgian government to support private sector growth in Africa, Asia & Latin America. BIO provides long-term financing to enterprises, the financial sector, and private infrastructure projects, as well as grants for feasibility studies and technical assistance programmes. BIO invests in projects targeting both high and sustainable development impact, and a modest financial return. BIO is a member of EDFI.

Responsible publisher

Joris Totté, CEO BIO nv/sa
Boulevard Bischoffsheimlaan 15
1000 Brussels, Belgium

Content

BIO and its investees

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Koen Van Troos, Louise Mailleux, Thibaud Lemercier, Marie Watelet, Milena Loyaza, Grégory Béhin, Maximilien d’Harcourt, Matilda Di Naro, Jérémie Gross, Sarah Truzzi, Jana Vandoren, Matthieu Demoulin, Lucie Stramare, Michael Botquin, Marguirette Kul, Robert Kay, Tine Vlietinck and Joris Totté.

Layout & graphic design

Louise Mailleux

Support for visuals

Josworld

Translation

Evi Vanhooren and the translation department of Enabel

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