SDG8 focuses on promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all by 2030, by promoting development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encouraging the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services. In addition, the goal targets achieving full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.

IFC's Overall Contribution to SDG-8 in Calendar Year 2019

501.1billion USD towards Microfinance and SME loans

60.5 million Microfinance and SME loans

2.1 million Jobs supported - 0.7 million Women

 

 

 


IFC's Contribution to individual targets of SDG-8

8.3   Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.

8.5   By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.

8.10   Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.


Examples of IFC projects contributing to SDG-8

Assessing Private Sector Contributions to Job Creation: A Bank Case Study in a Latin American Country

Increasing access to finance for small and medium enterprises (SMEs) and supporting jobs in Latin America

IFC has supported one of the largest private banks in a Latin American country (referenced in this executive summary as “the Bank”) through long-term loans that support the Bank’s lending to SMEs.

Interviews with 37 firms that obtained loans from the Bank in 2009 found that they created 509 permanent jobs between 2009 and 2012. This figure represents an annual job growth of 2.7 percent, slightly higher than the national average for the same time period; job creation was particularly high for women and youth. The study calculated that in average per US$100,000 of loans to SMEs in the sample, 5 jobs were created by the SMEs. We estimate that the Bank may have supported the creation of around 95,000 to 317,000 jobs through SMEs between 2009 and 2012, which represents up to 6 percent of formal employment in the country.

Shangri-La's Villingili Resort and Spa, Maldives

Creating jobs in a Nation of Atolls

Tourism has helped Maldives transform from one of the poorest countries in the world thirty years ago to a middle-income country today. The government planned the luxury Shangri-La’s Villingili Resort and Spa together with Shangri-La Group, a leading owner and operator of deluxe hotels and resorts in Asia, the Middle East, North America and Europe. When the government was unable to meet investment obligations to the project, IFC helped finance the $143 million investment project with a $50 million loan. In 2014, Shangri-La sustained over 1,600 jobs overall, including almost 600 direct jobs. The share of women working at Shangri-La is twice the average for the hotel industry in Maldives, a country where the culture discourages women from working in resorts. The hotel is creating stable job opportunities for Maldivians under 24, who make up ten percent of Shangri-La’s workforce.

Outcome Evaluation on PT South Pacific Viscose Line IV Project

Creating jobs in the manufacturing sector in Indonesia

PT. South Pacific Viscose (SPV) is one of the world’s largest low-cost producers of high quality viscose staple fiber, a biodegradable fiber that is traditionally used as a cotton substitute for its superior ability to absorb moisture. The Company is located in Purwakarta, Indonesia. In 2008, IFC provided financing to support SPV’s production capacity expansion (Line IV) and improvement in resource recovery and energy efficiency. The project created positive impact on employment, directly and indirectly. It created 250 additional direct employment positions and 9500 temporary jobs during the construction. Due to capacity expansion, SPV’s customers employed more workers. We estimated at least 3,000 indirect jobs would be created in the yarn manufacturing sector alone.

IFC and Fransabank Supporting Job Creation in Lebanon

Supporting jobs creation and inclusive growth in Lebanon

In 2007, IFC supported Fransabank under the Lebanon Rebuild Program with two facilities including a risk-sharing facility to support the bank’s lending to SMEs. A sample of 73 SME firms that obtained loans from Fransabank created 473 total full-time jobs, with a compound annual growth rate of 13 percent over the analyzed period.

IFC and HBL Supporting Job Creation in Pakistan

Supporting jobs creation through SME financing

IFC has a long-standing relationship with HBL which is the largest private sector commercial bank in Pakistan and operates over 1400 branches across the country. In 2007, IFC provided to HBL a subordinated loan of $50 million to strengthen the bank’s capital base and support its post-privatization expansion. Subsequently, IFC provided a $100 million guarantee facility. IFC identified a major opportunity to tap into and scale up the largely un-served small business segment, mainly by leveraging HBL’s vast branch network to acquire and serve small firms, and by analyzing the bank’s SME deposit clients and HBL’s knowledge on those customers to cross-sell lending products. Since 2011 IFC has been providing advisory services to help HBL adopt best practices in SME banking. This study shows that slmost all of the SMEs interviewed entered the HBL’s SBF program in 2009, obtaining in most cases a loan enhancement based on their previous running finance facility. These firms created 1,170 permanent full-time jobs over the period analyzed, with a commendable compounded average growth rate of 9.7 percent.

Creating Jobs in Sri Lanka: Role of Private Sector Financial Institutions

Supporting jobs creation through SME financing

The study found encouraging job creation effects. The firms surveyed had, by themselves, created 2,650 jobs, between 2009 and 2012, implying growth in jobs of 12 percent. This was higher than the rate of growth experienced by the rest of the country. Of these, almost half the new jobs created went to women. On extrapolating the sample results to CBC’s portfolio of smaller businesses that received loans in 2009, we find that they may have created between 140,000 and 340,000 jobs over three years, which represents about 1.8–4.3 percent of employment in Sri Lanka at the end of 2011.

EAP Financial Infrastructure Development Program

Improving private sector growth through expanded business and consumer access to credit

Since 2011, IFC assisted in credit bureau development in China, Vietnam, Laos, the Pacific Sub-Region, and Cambodia. This project focuses on broadening and increasing MSME access to finance in these countries. The mid-term review shows that the overall project assessment is excellent.

Mekong Enterprise Fund III L.P.

Promoting private sector investment and creating employment

Mekong Enterprise Fund III, L.P. (“MEF III” or the “Fund”), is a ten-year private equity fund with a target size of US$150 million. IFC equity investment in the Fund totals $15 million. The Fund focuses on the fast growing consumer sector in Vietnam. In 2016, the Fund’s investees created 46 new jobs and supported a total of 880 direct jobs, of which 336 were female jobs.