Belgian development finance institution, BIO has announced a $5 million investment in Société de Microcrédits Congolais (SMICO), a microfinance institution operating in the Democratic Republic of the Congo, as part of efforts to expand financial inclusion and support small businesses in underserved markets.

The investment comes as BIO approaches its 25th anniversary in 2026 and forms part of its broader strategy to back high-impact financial institutions in least developed countries.

“Access to financial services is a vital lever in the fight against poverty, especially in fragile contexts,” said Joris Totté, Chief Executive Officer of BIO.

“This investment reflects our mission: to support high-impact local institutions that drive inclusive and sustainable development.”

SMICO operates across eight provinces in the DRC through a network of 10 branches and serves more than 92,000 clients. The institution focuses on providing financial services to micro and small enterprises, a segment often excluded from traditional banking systems.

Pacifique Matabaro Ndagano, Chief Executive Officer of SMICO, said BIO’s funding would strengthen the institution’s capacity to support entrepreneurs and expand access to finance.

“BIO’s support will significantly strengthen our ability to finance and guide Congolese entrepreneurs over the long term, fostering entrepreneurship, job creation and financial inclusion,” he said.

The investment will allow SMICO to expand lending activities beyond its traditional base in the Kivu regions while strengthening operational capacity. It is also expected to improve access to financing for thousands of micro-entrepreneurs, particularly women and young people seeking to grow small businesses.

The deal further deepens BIO’s presence in the DRC, which rose from 15th to 9th place among the institution’s investment destinations between 2024 and 2025. BIO’s investment exposure in the country increased from €27.8 million to €34.3 million over the period.

Risks linked to investments in eastern DRC are being partially mitigated through the EDFI MSME Platform+ guarantee instrument, managed by EDFI Management Company and funded by the European Union. The mechanism supports risk-sharing for development finance institutions investing in higher-risk markets under the EU’s Global Gateway initiative.

The guarantee programme forms part of a wider €1.39 billion EFSD+ guarantee portfolio designed to mobilise investment into frontier and emerging markets.

BIO and SMICO said the partnership reflects a shared objective of using financial inclusion to support economic resilience, income generation and improved living standards across the DRC.