Belgian development finance institution BIO announced a $5 million investment in the Democratic Republic of the Congo’s microfinance provider SMICO, aiming to broaden financial inclusion for small enterprises.
Details of the investment and its intended impact
SMICO operates a network of ten branches across eight provinces, serving more than 92,000 clients who typically lack access to conventional banking. The funding will enable the lender to expand lending activities beyond its core area in the Kivu regions and to reinforce operational capacity. According to the chief executive of the microfinance institution, Pacifique Matabaro Ndagano, the injection “will significantly strengthen our ability to finance and guide Congolese entrepreneurs over the long term, supporting entrepreneurship, job creation and financial inclusion.”
SMICO’s focus on micro and small enterprises means the new capital could reach thousands of micro‑entrepreneurs, especially women and young people who are often excluded from formal credit channels. The expansion is expected to increase the volume of loans available to these groups, though the exact figures have not yet been disclosed.
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Broader context for BIO’s financing strategy
The investment arrives as BIO approaches its 25th anniversary in 2026 and reflects a broader push to back high‑impact financial institutions in least‑developed countries. The organization’s exposure to the DRC rose from €27.8 million to €34.3 million between 2024 and 2025, moving the country from the 15th to the 9th spot among BIO’s investment destinations.
Risks associated with operating in eastern DRC are being partially offset by the EDFI MSME Platform+ guarantee instrument, which is managed by EDFI Management Company and funded by the European Union. This guarantee mechanism is part of a larger €1.39 billion EFSD+ portfolio designed to attract capital to frontier markets under the EU’s Global Gateway initiative.
While the partnership aligns with BIO’s stated mission to support “high‑impact local institutions that drive inclusive and sustainable development,” the success of the venture will depend on how effectively SMICO can operate in the volatile environment of the eastern DRC. The guarantee from the EU may cushion some of the financial risk, but operational challenges—such as infrastructure deficits and security concerns—could constrain the pace of loan disbursement.
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If the institution maintains steady growth, it could set a precedent for similar investments in the region.
Joris Totté, chief executive officer of BIO, emphasized that “access to financial services is a vital lever in the fight against poverty, especially in fragile contexts.” He added that the funding “reflects our mission: to support high‑impact local institutions that drive inclusive and sustainable development.”
Both parties see the collaboration as a step toward greater economic resilience, income generation, and improved living standards across the DRC.
