The Polish economy is undergoing a major reboot. A massive influx of funds is expected to flow into innovative companies.

• Given the scale of assistance provided to entrepreneurs by Germany, France, Italy and Spain – the countries we should be aiming at in Europe – we need to reach for much more effective support tools, says Jarosław Dąbrowski, CIS President.
• As our interlocutor emphasizes, we need to change the entire development model. "This is our main focus: restarting the engines of growth by stimulating innovation," adds the BGK representative.
• Satellites, drones, radars, reconnaissance and communications systems… All of this should be a crucial part of Polish industry. Modern, lightweight, and scalable, emphasizes Jarosław Dąbrowski.

In its new five-year strategy, Bank Gospodarstwa Krajowego plans to increase its direct investment commitment to 30% of its equity. This translates to as much as PLN 4 billion for new investments. Could it be that the bank's current instruments are no longer effective?

- Given the scale of support provided to entrepreneurs by Germany, France, Italy and Spain – the countries we should be aiming at in Europe – we need to reach for much more effective support tools.

Over the past 30 years, Poland has achieved incredible success. Capitalizing on a low starting point and advantages such as cheap energy and a low-cost but relatively well-educated workforce, we've achieved impressive economic growth that others can't match.

We owe this to three main factors: the enormous energy, commitment and entrepreneurship of Poles, the minimization of investment risk after joining NATO and, finally, the opening of markets and the inflow of capital after joining the European Union in 2004.

Poland is at the point of economic restart

That's fine, but neither energy nor labor is cheap in Poland these days. Furthermore, a full-scale war has been raging across our eastern border for almost three years, which is affecting the perception of the Polish market…

"That's right. To the factors mentioned, I would also add the rising prices of assets in Poland, such as land and securities. Furthermore, we have one of the worst energy mixes in Europe, still based primarily on fossil fuels, which, given the European Union's climate ambitions, reduces our investment attractiveness."

So what is BGK's plan to overcome the difficulties currently facing the Polish economy?

We are currently at a kind of restart for the Polish economy. It's time for new growth engines.

What?

We must change our entire development model and focus on innovation. We must build our advantages on technologies and advanced know-how.

The second extremely important element of this change is supporting Polish companies in scaling their business , both at home and abroad.

In Poland we still don't have many global companies...

Many Polish companies have successfully conquered European markets. Thousands of such examples can be counted, as evidenced by the incredible growth of Polish exports in recent years.

However, the situation has now changed. Our main export partners – Germany, France, and the United Kingdom – are experiencing their own economic problems, which impact the situation of Polish exporters. Therefore, it's time to reach further, beyond Europe, and play on a global scale.

BGK wants to stimulate domestic investment. It's time to change the statistics.

This requires investment, however, and Polish companies have little to brag about. This is confirmed by data on the investment rate in Poland, i.e., its value relative to GDP. For years, this indicator has remained very low…

- In fact, the investment-to-GDP ratio is around 17%, which is one of the lowest levels in Europe, where the average exceeds 20%; in our neighbors, the Czech Republic, it is even 25%. And we, as Bank Gospodarstwa Krajowego, have a key role to play in changing these statistics.

We are one of the largest banks in the country, fully state-controlled. Our balance sheet total is nearly PLN 270 billion, and our equity capital is approximately PLN 41 billion, ranking us fourth among domestic banks. We play a key role in the economy, providing loans and guarantees directly, or indirectly distributing various products aimed at supporting exports and international expansion. In this way, working with partners such as the Polish Development Fund (PFR) and the Export Credit Insurance Corporation (KUKE), we support Polish entrepreneurs, including small and medium-sized enterprises.

However, we are also one of the largest investment funds in the country, because as a bank we already have nearly PLN 10 billion of exposure to capital investments.

We cooperate with institutions such as the European Investment Bank, the European Investment Fund and the Polish Development Fund, but we also invest independently through our subsidiary fund Vinci, which primarily finances technologies and the international scaling of Polish enterprises.

BGK has billions for capital investments. Innovation counts.

And this is supposed to be the basis for this change in the model of supporting economic growth by BGK?

- This is our main focus: restarting the engines of growth by stimulating innovation.

As you mentioned at the beginning, our latest strategy assumes an increase in the share of equity capital in capital investments from 20% to approximately 30%. This means over PLN 4 billion more for capital investments over the next few years.

Where will these billions go?

- First and foremost , we want to strengthen and develop the investment fund ecosystem in Poland and the region . Polish companies already operate on a regional scale, and there are plenty of examples of global players.

How large of a fund ecosystem are we talking about?

We plan to invest in up to dozens of investment funds. Assuming each fund will engage in 10 to 15 projects, we can see the scale of support we can achieve.

We do not intend to replace private or public capital. Like other foreign development banks, we want to contribute resources to interesting projects and funds as a minority shareholder.

What measures are we talking about?

The Vinci Fund has a cap of PLN 1.1 billion. To date, we have used PLN 270 million of this pool for nine investments. We plan to close the first half of the year with 10 projects under our belt.

So there is still quite a lot left of the above-mentioned limit of over PLN 1 billion that Vinci has at its disposal…

- That's right, and we're constantly working on new projects. We'll announce further investments in the coming months.

Green transformation is still important, but dual-use technologies are now the priority

What kind of projects will these be? Will innovation be the sole criterion?

- We select companies that have significant investment potential related to the development of their technologies and business scaling in Poland and abroad.

What industries are you looking for projects in? Are green technologies still in vogue?

"Of course, the green transformation remains very important, and we continue to support innovative technologies in this area. But history has accelerated , and what we need most now are dual-use technologies—both civilian and military . This is a clear priority today, and funding is available."

Satellites, drones, radars, reconnaissance and communications systems… All of this should be a crucial part of Polish industry. Modern, lightweight, and scalable.

We are currently examining several projects related to laser and satellite technologies. Scaling this type of production is critical for the security and development of the Polish state. However, these technologies are also beyond the capabilities of the private sector to finance, so these companies require public funding and the development of an ecosystem of investment funds.

WB Electronic is a prime example. The company became a significant exporter of modern defense technologies, but it needed early support, which we provided through the PFR Investment Fund, of which BGK is a 30% shareholder.

In today's turbulent times, dual-use technologies are a natural investment direction. Meanwhile, one of the latest projects BGK has been involved in is technology from the Polish start-up Respo.Vision, which enables… tracking the movement of football players during matches. Where does this technology play a key role in safety?

Firstly, markets aren't just driven by security and defense tech solutions. Europe has over 500 million inhabitants, and we want to support technologies that simply have business potential and the potential for international development.

In the case of Respo.Vision, we're dealing with so-called sports tech software, based on artificial intelligence, which has already been recognized by international sports organizations, including FIFA, and foreign clubs like Liverpool and Paris Saint-Germain. Remember that football is part of the entertainment industry, a constantly growing and extremely profitable business. From this perspective, the potential for scaling a Polish startup's business is enormous, and Poland is a regional leader in the gaming industry.

Secondly, we're talking about deep tech technologies, in this case artificial intelligence-based solutions that can also be used in security systems. Mapping the motion of moving objects can be used not only on the football pitch but also on the battlefield. We're exploring these possibilities together with the company.

BGK wants to help Polish companies scale their businesses internationally

What kind of investor does BGK want to be in the companies in which it invests capital?

- As a rule, we want to be a minority shareholder in the entities in which we invest and we want to play an active role in three areas.

Firstly, at the stage of verifying business plans and development projects. Secondly, at the financing stage, where we can support businesses with our debt instruments or guarantees. Finally, thirdly, we support Polish companies in their international expansion.

As a bank, we have a comprehensive understanding of all of Europe and can provide assistance, including regulatory and financing requirements. We want to fully support Polish companies in their international expansion, and to this end, we are strengthening our foreign offices, whether in Brussels, Germany, or Kyiv.

The BGK representative office in Kyiv was launched in February of this year. Will more be established?

"We want to expand our network of representative offices. Many Western countries are doing this. The Italian Development Bank currently has over 15 branches abroad, including Belgrade, Rabat, Cairo, Abidjan, and other promising destinations in Africa and Asia. Other development banks also have a strong presence abroad."

Polish technologies are in no way inferior and deserve the same support as Italian, German or French entrepreneurs.

So what directions are you aiming for?

- We analyze the markets of Central Asia, the Persian Gulf, Africa, Southeast Asia, and America, especially the USA.

We are examining the potential for expansion there for Polish companies. While it's true that these are challenging geopolitical times, investment risk has increased in many previously promising destinations, such as the Middle East, these are promising markets worth considering. The bank will undertake analyses and activities in this area, as we are a Polish development bank—a bank with a mission.

At the same time, we will act prudently, as BGK is a fully licensed and regulated bank, committed to conducting its operations safely and sustainably. This is also necessary at the current stage of the country's development.