Strengthening the private sector

Development cooperation is generally associated with humanitarian aid, NGOs or technical cooperation but much more rarely with the private sector. And yet, this sector plays a crucial role in a country’s economic and social development.

The dynamism of the informal economy in developing countries demonstrates their strong potential for economic initiatives. In these countries, where State structures remain fragile and cannot guarantee a stable economic situation, access to long-term finance and capital, without which companies cannot grow, is limited or impossible for a large chunk of the population. In fact, the banking system is often unsuited to the needs of small entrepreneurs and does not allow the emergence of income-generating activities.

Support for the private sector is therefore an essential link in the development cooperation chain, as it drives economic growth. By producing goods and services, local enterprises help improve the population’s living standards, accelerate technological developments and lower prices by stimulating competition and increasing the country’s tax base, which is essential for financing infrastructures, education and health.

BIO fulfils its mission to support the private sector by ensuring that its investments have a lasting positive impact on economic growth and the improvement of living conditions in the country.

To this end, BIO takes into account a few fundamental development indicators, such as social impact (the development of lasting employment, compliance with social regulations), economic impact (the profitability of the project and the generation of tax revenues, impact on the sector, development of the financial market, etc.), environmental impact and the impact in terms of governance (responsible management). A series of added value indicators also set out to determine to what extent BIO has played a strategic role within the framework of an investment project, either by acting as a pioneer, by attracting other investors, or by making a significant contribution to the strengthening of the sector or its credibility.