IFC Contributes to Development of Small Enterprises, Indigenous Crafters in Remote Russia
In Moscow:
Nezhdana Bukova
Phone: 7 (495) 411-7555
E-mail: nbukova@ifc.org
Moscow, Russia, July 1, 2009—IFC,
a member of the World Bank Group, has successfully concluded its Russia
Far East Business Development Project, which extended the developmental
impact of IFC investments in the local mining industry to the remote Magadan
region.
The multi-faceted project concentrated on assisting small and medium enterprises
and the large indigenous community in Magadan, located in Russia’s far
northeast. The project created a self-sustainable microfinance fund, which
has provided more than $2 million in microfinancing to 281 clients locally.
It also helped increase market access for local firms, with 15 contracts
totaling $3 million signed with target mining companies, while project
advisory services facilitated a $6 million increase in revenues for its
small and medium enterprise clients.
“The most important thing is that IFC is leaving behind is a structure
for SME support-–the microfinance fund,” said Sergey Grebenyuk, Head
of the Special Economic Zone of the Magadan Regional Administration. “That’s
a very valuable contribution to Magadan’s further development.” He also
noted that IFC has brought to the region a new work culture, which is important
not only to project clients, but also to local governmental officials.
With funding from the Canadian International Development Agency,
the project helped build local business capacity and supported the local
indigenous population by:
- Improving the business practices of
local SMEs involved in the mining supply chain and providing training to
improve the management skills and efficiency of entrepreneurs in the larger
business community
- Offering consultations on basic business
development to Magadan’s large indigenous population, including seminars
on developing and marketing traditional handcrafts as self-sustaining businesses
- Raising awareness among local government
officials of how reducing administrative barriers can improve the business
environment
- Working with local banks to increase
access to financing for SMEs by introducing alternative financing products
catering to smaller businesses
Alexander Avdonin, Chair of the Magadan Union of Tribes and Indigenous
People, said: “The project’s biggest achievement is that the expertise,
tailored work, and training provided to us by IFC has managed to change
our thinking, making us business-oriented.”
About IFC
IFC, a member of the World Bank Group creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
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