BIO's first management contract
As foreseen by the new Law on the Belgian Investment Company for Developing Countries (BIO) of January 2014, a first management contract between BIO and the Belgian State was adopted and published in the Belgian Official Journal last April 2014. It details the missions, values, principles, main strategic pillars and methods for BIO’s interventions for 2014 - 2018. It also specifies BIO’s financing terms by the Belgian State and emphasises the importance of all actors of the Belgian Development Cooperation collaborating and using their complementarity to a maximum. This with the aim to create access to finance for micro, small and medium-sized enterprises (MSME) and enterprises of the social economy in the countries of intervention.
MPMEs remain BIO’s main target, and the mandate has been broadened to the support of enterprises of the social economy and enterprises offering basic services to the population. Apart from the investments in this last sector, an MSME support fund is created within BIO with the aim to subsidize feasibility studies and programmes of technical assistance and training before and after investments.
The priority strategic pillars in terms of sectors as defined by the management contract are the financial sector, agricultural sector, energy sector and infrastructure relevant to the development of MSMEs.
Furthermore, the management contract determines the goals of the company in terms of overall objective, volume of operations and internal performance (in particular operational costs, profitability, implementation of an internal evaluation system). Working with a management contract will allow for a stable operational framework to be established, enabling BIO to organise its operations efficiently: BIO receives managerial autonomy in this framework and the Belgian State commits to foreseeing the appropriate financial means so that BIO can comply with its mandate.
BIO is a financial development institution created by the Belgian State in 2001. Its mission is to support the emergence of a strong private sector in developing countries, to enable them to gain access to growth and sustainable development. The new Law on BIO forms part of the modernisation process of the Belgian Development Cooperation which was in turn concretely realised by the adoption of a new Law in 2013, which sets the goal for development cooperation at sustainable human development through the promotion of actions that contribute to inclusive, fair and sustainable economic growth.