Belgian Investment Company for Developing Countries (BIO), a state-owned development finance institution, recently extended a USD 1.5 million loan to Centro de Investigación y Desarrollo Regional (CIDRE), a Bolivian non-governmental organization (NGO). This loan is expected to help CIDRE expand its outreach to unbanked rural entrepreneurs to support micro- and small enterprises (MSEs) to generate jobs. BIO extended this loan as part of its June 2012 agreement with Belgian microfinance fund management company Incofin Investment Management to assist microfinance institutions (MFIs) in Africa, Latin America and Asia with investments worth USD 12 million [3].
Founded in 1981, CIDRE has 15 branches in central and southern Bolivia as of 2012. The institution intends to extend its reach nationwide by 2014. As of 2011, CIDRE reported to the US-based nonprofit data provider the Microfinance Information Exchange (MIX) total assets of USD 31.2 million, a gross loan portfolio of USD 25.7 million oustanding to 5,156 borrowers, return on assets (ROA) of 2.48 percent, return on equity (ROE) of 11.6 percent and no deposits.
BIO was established in 2001 by the Belgian government to promote the creation of a strong private sector in developing countries in an effort to enable them to achieve prosperity through sustainable development. As of 2011, BIO reports total assets of EUR 485 million (USD 630 million) and return on assets of 0.92 percent. The Belgian government has committed to allocating EUR 105 million (USD 136 million) to BIO in 2011. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries.
By Sarah Benali, Research Associate
About CIDRE
Founded in 1981, Centro de Investigación y Desarrollo Regional (CIDRE) is a non-governmental organization (NGO) that provides financial services intended to support farming and livestock husbandry in rural Bolivia. CIDRE is active in five of Bolivia’s nine states, principally in rural areas and in the outskirts of towns. As of 2011, CIDRE reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 31.2 million, a gross loan portfolio of USD 25.7 million outstanding to 5,156 borrowers, return on assets (ROA) of 2.48 percent, return on equity (ROE) of 11.6 percent and no deposits.
About Belgian Investment Company for Developing Countries (BIO)
The Belgian Investment Company for Developing Countries, also known by the Dutch acronym BIO, was established in 2001 by the Belgian government to promote the creation of a strong private sector in developing countries in an effort to enable them to achieve prosperity through sustainable development. BIO has invested in approximately 90 private sector projects and is present in nearly 60 countries. As of 2011, BIO reports total assets of EUR 485 million (USD 630 million) and return on assets of 0.92 percent. The Belgian government committed to allocating EUR 105 million (USD 136 million) to BIO in 2011.
Sources and Additional Resources
[1] BIO Press Release: “BIO to support Bolivian microfinance institution CIDRE,” November 27, 2012, http://www.bio-invest.be/en/news/52-bio-to-support-bolivian-microfinance-institution-cidre.html
[2] MicroCapital.org story: “MICROCAPITAL BRIEF: Belgian Investment Company for Developing Countries (BIO) Disburses Grant to Banco Solidario of Ecuador for Financial Education, Complimenting $8m Loan,” October 6, 2012, https://www.microcapital.org/microcapital-brief-belgian-investment-company-for-developing-countries-bio-disburses-grant-to-banco-solidario-of-ecuador-for-financial-education-complimenting-8m-loan/
[3] MicroCapital.org story: “MICROCAPITAL BRIEF: Incofin, BIO Sign $12m Agreement to Develop Early-Stage Microfinance Institutions in Africa, Latin America, Asia,” June 12, 2012, https://www.microcapital.org/microcapital-brief-incofin-bio-sign-12m-agreement-to-develop-early-stage-microfinance-institutions-in-africa-latin-america-asia/
[4] MicroCapital.org story: “MICROCAPITAL BRIEF: Belgium’s Incofin Loans $3.5m to Microfinance Institutions (MFIs) Forus Bank of Russia, CIDRE (Centro de Investigacion y Desarrollo Regional) of Bolivia,” April 1, 2011, https://www.microcapital.org/microcapital-brief-belgium%E2%80%99s-incofin-loans-3-5m-to-microfinance-institutions-mfis-forus-bank-of-russia-cidre-centro-de-investigacion-y-desarrollo-regional-of-bolivia/
MicroCapital Universe Profile: CIDRE
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CIDRE
MicroCapital Universe Profile: Belgian Investment Company for Developing Countries (BIO)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Belgian+Investment+Company+for+Developing+Countries+%28BIO%29
MicroCapital Universe Profile: Incofin Investment Management
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29
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