ALGIERS/WASHINGTON, D.C., August, 24, 2004—
The North Africa Enterprise Development (NAED), a regional small and
medium enterprise business development facility managed by the International
Finance Corporation, today signed a memorandum of understanding in Algiers
to develop a network of small manufacturing and retail units for BKL Industries.
Building linkages between large companies and small enterprises through
subcontracting, supply-chain management, and spin-off programs has become
a pillar of NAED’s technical assistance program.
BKL Industries is a leading local private company in the PVC joinery manufacturing
sector. The partnership between IFC, the private sector arm of the World
Bank Group, and BKL aims to launch 30 small manufacturing units by December
2005. These units will manufacture and distribute BKL-customized PVC windows
and doors to meet the burgeoning demand for housing by-products in Algeria:
the country has a housing shortage of nearly 1.1 million units.
NAED will help BKL design and implement its small enterprise manufacturing
and distribution network; bolster the managerial capacity of small entrepreneurs
managing the units; and mobilize up to $3 million in financing from domestic
banks and agencies to support the start-ups of the small manufacturing
units. Each unit will employ up to four people, and will also get technical
assistance and credit facilities from BKL.
Sami Haddad, IFC director for Middle East and North Africa, noted: “NAED’s
technical assistance to BKL underlines the thrust of our operations in
Algeria: generating private sector job creation, and providing business
management training and access to finance for small entrepreneurs. In addition,
this partnership with BKL provides NAED with the opportunity to adapt to
local conditions its expertise in developing small enterprise linkages,
which can be replicated with other corporate clients in Algeria.”
Aside from servicing the local construction market, BKL’s establishment
of a manufacturing and distribution network of small enterprises supports
its medium-term strategy of securing a strategic alliance with an international
company that makes complementary products.
Sammy Boukaila, general manager of BKL, said, “Teaming up with IFC will
enhance BKL’s chances of becoming a structured group with extended outreach
to untapped markets in Algeria.” “Creating the first such network –
a quasi franchise - in Algeria requires expertise. NAED will help select
and train small entrepreneurs on management best practices and quality
standards, which will strengthen our brand name,” he added.
BKL Industries, established in 1990, specializes in PVC extrusion
and manufacturing of windows, doors and isolators glazing. BKL has an annual
turnover of $50 million and 343 staff, who are employed in its two industrial
units and engineering office of housing joinery. BKL also exports products
to France, Spain, Germany, Russia, Lebanon and Iraq.
is the first small business development facility in the Middle East and
North Africa region and is managed from IFC’s headquarters in Cairo, with
IFC offices in Algiers and Rabat as well. It is a five-year $20 million
technical assistance program for small businesses, cofunded by IFC and
donor countries, including Belgium, France, Italy, and Switzerland. NAED’s
key objective is to foster job creation in Egypt, Algeria, and Morocco
by supporting the development of small businesses -- the bedrock of all
those countries’ economies.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY03, IFC has committed more than $37
billion of its own funds and arranged $22 billion in syndications for 2,990
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY03 was $16.8 billion for its own account and $6.6 billion held
for participants in loan syndications.