BIO and the CDE renew their cooperation framework agreement

28.09.2009
An openly cooperative constructive dialogue prevailed at the 9 July 2009 annual meeting of BIO and CDE experts, further heightened by the active participation of the two directors, Messrs Hugo Bosmans and Mabousso Thiam, who closed the meeting by signing the addendum which extends for three years the first cooperation framework agreement signed by the two organizations on 6 April 2006.
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The Belgian Investment Company for Developing Countries (BIO) and the Centre for the Development of Enterprise (CDE) are engaged in very complementary activities: BIO finances existing or start-up enterprises; the CDE provides technical assistance to ACP SMEs at all stages of their life-cycle but cannot lend neither invest. Hence, the framework agreement aims to facilitate cooperation in the field and in Brussels between the experts of both organizations, in terms of sharing information, but also of helping businesses that are already assisted by the CDE to present financing requests to BIO.

Since BIO’s SME Fund was renamed Enterprises Department, the CDE has assisted the presentation of 21 such requests for financing: 7 were approved by BIO and executed, worth a total of € 3.38 million - 30% of the fund’s portfolio. The SMEs presented by the CDE that received funding are spread over 6 countries: Senegal (two SMEs), Mali, DRC, Côte d’Ivoire, Burkina Faso, Cameroon. Five other requests assisted by the CDE are currently being assessed by BIO. Of the 12 requests accepted or under assessment, 9 concern SMEs in the agriculture, fisheries or livestock sectors. The meeting on 9 July was of course an opportunity for constructive discussion on most of these requests.

In theory, BIO can operate in 109 countries, but must strive to invest 70% of the funds devoted to enterprises in the 18 priority countries designated by the Belgian Development Cooperation, of which 11 are ACP countries (all in Africa). BIO includes 5 other « focus » African countries, which brings to 16 the number of priority ACP countries for BIO. Apart from the Belgian cooperation officials present in most of these countries, BIO does not own a network of local correspondents specialized in support to enterprises, but relies on CDE’s network which covers all ACP countries.

This is again an opportunity for close cooperation. At the end of the meeting on 9 July, the two directors accordingly committed to reinforce this cooperation in the field.

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