Linking SMEs to Investments

Linkage programs are designed around selected IFC investments to increase participation of local firms in the project and bring additional benefits to the surrounding communities. At the same time, these programs may reduce costs to investors and enhance their ability to be responsible corporate citizens. Linkage programs achieve these objectives by:

• improving local SMEs’ technical and business skills, thus qualifying them for contracts to sell higher-quality goods and services that generate sustainable new sources of income,
• facilitating access to finance for local suppliers,
• strengthening local supply and distribution networks,
• supporting community development projects with health, education, and infrastructure programs.

Linkage programs focus on frontier countries and regions where few alternatives exist for local enterprises. Countries covered by active projects include Mozambique, Nigeria, Chad, Zambia, Azerbaijan, Georgia, Kazakhstan, Turkey (in the poorer northeast), El Salvador, Peru, and impoverished areas of Brazil.

Since inception, our linkage programs have been implemented in 14 countries, tied to more than $1 billion in IFC investments, with about a dozen projects under active implementation and many more under development. We have leveraged our own $4.7 million in linkage technical assistance with contributions of more than $12 million from private sponsors and other sources.

See Related Links

• IFC Launches Report on Business Linkages in Developing Countries
• IFC Linkages Help Smaller Businesses and Local Communities