Belgium's development finance institution BIO has granted a $5 million loan to microcredit company SMICO, a microfinance institution operating in the Democratic Republic of Congo. The financing agreement was signed on May 21, 2026, in Brussels.

According to a joint statement released at the signing ceremony, the funds are intended to help SMICO expand its operations beyond its traditional areas of operation in the Kivu region.

Those areas are currently affected by a security crisis that has weakened the institution's activities. At the end of the first half of 2025, SMICO recorded a loss of 1.29 billion Congolese francs.

In Goma and Bukavu, where the institution operates two major branches, banking activity has been suspended since AFC/M23 rebels seized those cities in early 2025. In Uvira, where SMICO also has a branch, operations remain dependent on developments in the security situation.

Responding to the crisis

The transaction partly reflects a response to that crisis. "This financing undeniably contributes to strengthening the institution's financial resilience and its ability to continue its mission despite a complex economic and security environment," SMICO said.

The institution, however, cautioned against a narrow reading of the deal. "It would be misleading to view this operation solely as a crisis-response measure," it said.

SMICO framed the loan primarily as part of its ambition to accelerate its growth strategy and strengthen its presence in several high-potential markets.

In the near term, the institution plans to continue its expansion into Isiro, in Haut-Uele province, and Butembo, in North Kivu, while consolidating its network in provinces where it already operates.

In addition to its branches in Goma, Bukavu and Uvira, SMICO has a presence in Bunia, Kalemie, Kisangani, Lubumbashi, Kolwezi, Kindu and Likasi.

As part of its 2030 development strategy, the institution also aims to progressively extend its reach into the central and western provinces of the country to strengthen financial inclusion nationwide.

Fighting poverty

"This expansion will be based on an approach combining the opening of new branches, the development of banking agent and super-agent networks, and the strengthening of digital channels," SMICO said.

The strategy is expected to broaden the institution's client base, which currently serves more than 92,000 customers, and grow its loan portfolio.

The financing is explicitly targeting Congolese micro-entrepreneurs, particularly women and young people. "BIO's support will sustainably strengthen our capacity to finance and support Congolese entrepreneurs, stimulating entrepreneurship, job creation and financial inclusion," said Pacifique Ndagano, SMICO's chief executive.

At BIO, the loan, which is guaranteed by EDFI Management Company, is presented as an investment in the fight against poverty.

"Access to financial services is a key tool in the fight against poverty, particularly in fragile countries," said Joris Totté, BIO's chief executive, whose institution marks its 25th anniversary this year. "This investment illustrates our mission: supporting high-impact local actors for inclusive and sustainable development," he added.

Pierre Mukoko