The manufacturing sector plays a vital role in creating opportunity and reducing poverty in developing countries. IFC’s manufacturing clients tend to create or maintain more employment (including indirectly, through third-party distribution channels) than those in any other sector.
We have increased our activities in the sector, which includes construction materials, energy-efficient machinery, chemicals, and equipment for solar and wind power. We invest in companies that are developing new products and markets, and restructuring and modernizing to become internationally competitive.
We focus on manufacturing clients that are—or can be—strong players in their local markets. In middle-income countries, we increasingly support local second-tier companies and cross-border investments. As these industries represent some of the most carbon-intensive sectors, we are helping clients develop and undertake investments that help reduce carbon emissions and energy consumption.
In FY12, our new commitments in the manufacturing sector totaled slightly more than $1 billion, or nearly 7 percent of commitments for IFC’s own account.