BIO: Investment strategy 2019-2023

BIO: Investment strategy 2019-2023

I BIO’s Vision, Mission and Theory of Change
BIO’s proposed vision and mission statements are in line with our Theory of Change and our
commitment to contribute to the SDGs.
- BIO’s vision: we aim to develop sustainable entrepreneurship in our countries of 
intervention and participate to create a world with No Poverty – SDG 1: economic 
growth must be inclusive to provide sustainable jobs and promote equality.
- BIO’s mission: we contribute to sustainable human development in our countries of 
intervention by supporting the private sector via direct and indirect investments to 
develop targeted enterprises. 
BIO’s Theory of Change has been revised to integrate the SDGs. It sets out the logic of our
interventions by outlining causal linkages between inputs, outputs (delivered through a set 
of activities), outcomes and, finally, expected development impacts, i.e. inclusive and 
sustainable economic growth in line with SDG1.
- The inputs provided by BIO, classified under three broad categories, are: 
• BIO’s funding, which more broadly includes ‘BIO’s stamp of approval’, i.e. the 
positive reputation of BIO as a publicly owned entity providing funding
• BIO’s in-house expertise: in terms of finance structuring, origination & supervision 
of deals (legal, risks,…)
• Development and Sustainability support: E&S expertise, Business Development 
Support Fund and Monitoring and Evaluations of development effects
- The outputs are the direct and indirect investments in Enterprises and MSMEs, in the 
following sectors: financial institutions, health & education, agri-value chain, renewable 
energy and energy efficiency and digital technology. 
BIO’s activities related to these outputs are:
• Loan provisions and equity participation
• Governance: seats in Board/Advisory Committee when equity participation, legal 
covenants in contracts, formalisation of investees, …
• E&S compliance: BIO’s E&S Policy and E&S contracting requirements 
• Technical Assistance and Feasibility Studies to support our clients and deliver 
value-added services, contributing to business sustainability 
• Development assessment: BIO’s development assessment framework (incl. BIO 
Development Goals)
- The outcomes of BIO interventions lead to strengthened social inclusiveness, private 
sector growth and good environmental practices. At the level of the outcomes, the Theory 
of Change refers to a limited set of SDGs, with a deliberated focus on:
• SDG5 Gender & SDG10 Reduced Inequalities for social inclusiveness;
• SDG8 Decent work and economic growth & SDG9 Industry, Innovation and 
Infrastructure for private sector growth;
• SDG7 Affordable and clean energy & SGD12 Responsible production and 
consumption for good environmental practices. 

These SDGs are highlighted as they are the closest related to BIO Development Goals1
, they 
cover the priority investment sectors of BIO, and can be monitored through indicators at the 
level of SDGs sub-targets (as indicated in the Theory of Change). It does not mean that the 
other SDGs are not taken into consideration as outcomes, but rather that they are transversal 
to BIO’s operations. At the level of our clients, these outcomes translate into increased 
economic activity, capacity and knowledge building, E&S practice improvements and other 
development effects – through e.g. formalisation and growth of SMEs, women’s equal 
opportunities, adoption of sustainable processes, decent working conditions, increased 
resources for the State, switch to renewable energy, improved access to basic goods and 
services,…
BIO will report on generic and specific development indicators2
for each investment project, 
based on the SDGs sub-targets at the outcome level, to demonstrate how we contribute to 
SDG 1– No Poverty, creating inclusive and sustainable development impact. 
Finally, BIO has been and will be working with many other actors to achieve its mission. In the 
next five years, cooperation with other European Development Finance Institutions (EDFIs),
Multilateral Development Banks (MDBs), private investors and Belgian and international 
development actors will be strengthened (SDG17 Partnerships for the Goals).
This Theory of Change will be further detailed by the end of 2019 and presented separately 
as a publicly available document with specific links to the priority themes of gender, climate 
change, food security and digital and the development indicators associated therewith. It will 
also refer to the (ongoing) DGD “SDG compass” study, aligning with the overall efforts of the 
Belgian International Cooperation to come up with a common framework to assess its 
contribution to the SDGs.

BIO: Investment strategy 2019-2023