EU-backed risk-sharing helps expand local production of organic agricultural inputs and strengthen sustainable value chains  

BRUSSELS, Belgium — 2 June 2026 — EDFI Management Company (EDFI MC), through its Transforming Global Value Chains (TGVC) guarantee programme under the European Fund for Sustainable Development Plus (EFSD+), is supporting BIO’s €2.8 million senior secured loan to BioPhyto, a Benin-based producer of organic fertilisers and bio-pesticides. 

To support this transaction, BIO benefits from a guarantee amounting to €1.92 million under the TGVC programme. The EU-backed guarantee helps mitigate the transaction’s higher risk profile and enables BIO to support a young and growing enterprise that would otherwise be difficult to finance under its usual parameters. 

Established in 2013, BioPhyto produces organic fertilisers, bio-pesticides and compost in Benin. According to BIO – BioPhyto is currently the only company in the country manufacturing and commercialising patented, certified and approved agricultural inputs. “Over the years, the company has been supported by prominent Belgian stakeholders, including development agency Enabel and impact investor Kampani. Their guidance has been instrumental in helping the company scale its operations and ultimately achieve investment readiness. This collaboration exemplifies a true ‘Team National’—or, in this context, ‘Team Belgium’—approach, as promoted under the Global Gateway initiatives. 

The BIO loan will finance the acquisition of equipment and machinery to enhance the company’s production capacity as well expansion of the company to Ivory coast. BioPhyto transforms agricultural and agro-industrial residues into organic agricultural inputs, enriching them with organic materials including aromatic plants and neem seeds sourced through a network of 3,000 women in rural communities. 

The investment is expected to drive economic growth and job creation by strengthening local production capacity and export potential, while promoting circular economy models, mechanisation, digitalisation and stronger value chain linkages in Benin’s agriculture sector. It will also support food security and rural development by expanding access to sustainable agricultural inputs and fostering more inclusive growth in rural communities, while contributing to climate change mitigation through the replacement of chemical inputs, the recycling of agricultural and agro‑industrial waste and the use of renewable energy in production processes. In parallel, the transaction seeks to reinforce environmental, social and governance performance through an ambitious environmental and social action plan and is aligned with the EU’s Global Gateway strategy by supporting sustainable growth, quality jobs and more resilient regional value chains, including within Team Europe initiatives. 

The TGVC guarantee plays a key role in de-risking the transaction. BIO indicates that BioPhyto’s profile as a young and small enterprise, would make the transaction difficult to support without guarantee cover. In addition, the guarantee enables BIO to provide a larger loan amount to Bio Phyto, thereby strengthening its capacity to fulfill its development mandate more effectively.TGVC is one of the EFSD+ guarantee programmes managed by EDFI MC to help European Development Finance Institutions mobilise investment in businesses that strengthen local, regional and international value chains in emerging markets. 

About EDFI Management Company 

EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. For more information, visit www.edfimc.eu  

About the EDFI Transforming Global Value Chains (TGVC) Programme  

The EDFI Transforming Global Value Chains (TGVC) Programme is a joint EFSD+ guarantee programme developed by European Development Finance Institutions and EDFI Management Company under the EU’s Global Gateway. The Programme supports and de-risks debt investments in companies and projects that make global value chains more sustainable, inclusive, and resilient, with a focus on high-impact sectors and challenging markets. For more information see https://edfimc.eu/what-we-do/transforming-global-value-chains-tgvc/   

About EFSD+ 

The European Fund for Sustainable Development Plus (EFSD+) is the financing arm of the EU’s Global Gateway strategy. It provides guarantees and blended finance instruments to support investments that contribute to sustainable development, particularly in fragile and emerging markets.  

About Global Gateway 

Global Gateway is the European Union’s strategy to boost smart, clean, and secure connections in digital, energy, and transport sectors, and to strengthen health, education, and research systems across the world. It aims to mobilise up to €300 billion in investments between 2021 and 2027 to support sustainable and trusted partnerships globally. 

About BIO 

BIO is the Belgian Development Finance Institution and investment arm of Belgian international cooperation. It supports the growth of a strong, locally anchored private sector in Africa, Latin America, Asia, and Ukraine. BIO’s investments create jobs and generate local tax revenues, attract additional private investments, focus on sectors often lacking access to capital and respect local priorities. Priority areas include sustainable agriculture, local value chains, renewable energy, and inclusive financial services, with special attention to women’s economic inclusion. For more information: www.bio-invest.be