Why Manufacturing Matters: A Value Chain Reaction Manufacturing lies at the core of the global economy. Manufacturers bolster demand for raw materials, energy and technology, and they develop relationships and partnerships with suppliers around the world. Their influence ripples up the value chain, encouraging technological and social changes. Very often, a worker’s first expe- The jobs that manufacturers cre- and that manufacture a wide array rience with the formal economy is ate and the products they produce of products, including chemicals, on a factory floor. Through manu- help move countries out of poverty construction materials, automotive facturing jobs, people may get their and into the global markets. Today, parts, textiles and more. Our in- first opportunities to acquire insur- manufactured products account vestments help manufacturers cre- ance, access financial services, and for 70 percent of merchandise ex- ate safer working environments, learn about sustainability concepts. ports. improve food and water safety, The manufacturing sector employs reduce greenhouse gas emissions, IFC’s engagement with manu- a large number of women and hires boost recycling and renewables facturing focuses on developing employees at every phase of the use, create better pricing, and fos- production complexity, product skills spectrum, helping foster and ter innovation via new technolo- complexity and value chain com- build a more dynamic, diverse and gies. IFC is invested in increasing plexity to help countries develop sophisticated workforce. shared prosperity and reducing and expand their economies. At poverty while supporting the Sus- IFC, we invest in and advise com- tainable Development Goals. panies that produce base materials “ Manufactured goods remains the most important sector for developing economies overall. World Trade Organization, 2018 IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. Our Approach We bring together public and pri- vate stakeholders and internation- We are invested in private sector manufacturing in Albania, Argenti- IFC’s approach with manufacturers al partners to build consensus and na, Bangladesh, Bosnia and Herze- is focused on jobs, productivity and help countries produce more com- govina, Brazil, Bulgaria, Cameroon, sustainability. We help countries in- plex products using more complex China, Cote D’Ivoire, Czech Repub- novate their manufacturing sectors processes and more complex value lic, Democratic Republic of Congo, as a means to develop more efficient chains. Egypt, Ethiopia, Georgia, Ghana, and complex economies. We do this Guatemala, Haiti, India, Indonesia, Sustainability is a key part of our by leveraging funding opportunities, Jordan, Kazakhstan, Kenya, Kosovo, work. IFC helps manufacturers facilitating technology transfers, ar- Liberia, Mali, Mexico, Mozambique, modernize and become more en- ranging skills training initiatives and Myanmar, Nigeria, North Mace- ergy efficient. We finance projects offering strategic guidance. donia, Pakistan, Papua New Guin- that improve environmental, health ea, Russian Federation, Senegal, IFC provides loans and underwrites and safety performance. IFC has South Africa, Sri Lanka, Tajikistan, investments on our own and in been an active investor in renew- Tanzania, Thailand, Tunisia, Turkey, partnership with other investment ables and has financed solar pho- Ukraine, Uzbekistan, Venezuela, organizations and financial institu- tovoltaic technology, for example, West Bank and Gaza, and Yemen. tions. Equally important to our core since 1989. approach is our advisory services. We help companies identify invest- Our approach is designed to en- courage an industry-wide shift to Contacts ment opportunities, reduce risks, Sabine Schlorke, safe, sustainable and profitable innovate solutions, enter new mar- Manager, Global production in emerging market kets and improve environmental, sschlorke@ifc.org economies. social, labor and corporate gover- Olaf Schmidt, Manager, nance standards. Clients value IFC as a long-term IFC Manufacturing Sub-Saharan Africa, oschmidt@ifc.org partner with global expertise. We Portfolio MEDIA INQUIRIES: work with partners to mobilize We currently have $3.9 billion Aliza Marcus funding that is not easily or readily committed in investment in 180 amarcus@ifc.org available elsewhere. manufacturing projects around the world, including in many of the poorest countries. Web: www.ifc.org/manufacturing LinkedIn: www.linkedin/showcase/ifc-manufacturing Twitter: #IFCmanufacturing NOVEMBER 2019