Investment Strategy
BIO is Belgium’s development finance institution, established to support private sector development in emerging and developing countries. The institution provides a range of financial instruments including equity investments, loans, and guarantees, with a focus on catalyzing private investment in markets where capital is scarce and development needs are greatest. BIO has a particular mandate to reach least-developed countries and fragile states, which distinguishes it from some larger DFIs that focus more heavily on middle-income markets.
The fund investment program is a core component of BIO’s strategy, with the institution investing in private equity, infrastructure, and financial inclusion funds across its target geographies. BIO has built particular expertise in Sub-Saharan African fund investing, with commitments to numerous country-specific and pan-African vehicles. The institution also invests in funds focused on South and Southeast Asia and Latin America, prioritizing managers with strong local teams and deep market knowledge. BIO participates actively in the European Development Finance Institutions network, co-investing alongside peer institutions and contributing to sector-wide initiatives.
BIO’s investment approach integrates development impact assessment throughout the investment lifecycle, from screening and due diligence through monitoring and exit. The institution has developed proprietary tools for measuring development outcomes and uses these alongside financial metrics to evaluate fund and portfolio performance. Climate finance and gender lens investing have become increasingly important components of BIO’s strategy, reflecting both Belgian government priorities and the institution’s own strategic evolution.
How to Approach
Fund managers seeking investment from BIO should demonstrate clear development impact and operations in the institution’s priority geographies, particularly Sub-Saharan Africa and least-developed countries. BIO is receptive to both established and emerging fund managers, with a willingness to support first-time funds where the team has relevant experience and the strategy addresses clear market gaps.
BIO’s investment team is based in Brussels and engages through formal application processes, EDFI network channels, and development finance conferences. Managers should be prepared to articulate their development thesis, impact measurement approach, and ESG practices alongside investment strategy. The due diligence process is thorough and includes assessment of additionality, environmental and social risk management, and governance quality.
Frequently Asked Questions
What is BIO?
BIO is the Belgian Investment Company for Developing Countries, established in 2001 as Belgium's development finance institution. BIO provides equity, loans, and guarantees to support private sector enterprises and financial intermediaries in developing countries, with a focus on least-developed countries and fragile states.
How does BIO invest in private equity funds?
BIO invests in private equity, infrastructure, and financial inclusion funds focused on developing countries. The institution has particular expertise in Sub-Saharan Africa and has built a substantial portfolio of fund commitments alongside direct investments. BIO actively participates in the EDFI network for co-investment and knowledge-sharing.
What are BIO's investment priorities?
BIO prioritizes investments that promote inclusive economic growth, climate action, and gender equality. The institution focuses on sectors including agriculture, financial services, energy, and infrastructure, with a geographic emphasis on Sub-Saharan Africa, South and Southeast Asia, and Latin America. BIO has a dedicated focus on reaching least-developed countries and fragile states.
