Washington, D.C., December 21, 2009—A new study by IFC, a member of the World Bank Group, and Nordic business consultancy Capacent shows that suppliers in emerging markets are interested in solutions for supply chain financing to help them find affordable financing.  

The Global Supply Chain Financing Market Study, carried out between May and November 2009, analyzes the need and interest in supply chain financing, focusing on Bangladesh, Brazil, Guatemala, Indonesia, Romania, Turkey, and Vietnam.  The study includes proposals for how IFC might create a platform for emerging markets.

Suppliers in emerging markets, especially small and midsize enterprises, find it more difficult to obtain financing because of the global financial crisis and the trend toward increased use of open account trading and pressure from major customers to increase payment terms.  

“We have been implementing supply chain financing with our clients over the past few years, and have seen great benefits for both buyers and suppliers,” said Peter Stenbrink, Partner at Capacent Sweden.  “It is exciting to work with IFC in developing a program that could help bring supply chain financing to many emerging markets.”

Supply chain financing helps suppliers find financing at attractive rates, freeing up liquidity by introducing a platform that allows suppliers to sell their invoices to financiers after the invoices have been approved by buyers.  This solution, which reduces invoice risk by providing transparency of buyer approval of the invoice, has grown in use, especially in developed markets.  IFC is committed to working to bring supply chain financing to suppliers in developing markets.  

“The study has given us excellent insights into the needs in the market, and how IFC could play a role in supporting emerging-market suppliers,” said Rogers LeBaron, Senior Advisor at IFC. He noted that IFC will continue working with Capacent to develop supply chain financing solutions in further detail.

IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by working to implement new financing solution for enterprises in emerging markets.

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 $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.

About Capacent
Capacent is the leading Nordic business consultancy with more than 500 employees and offices in Denmark, Sweden, Iceland, Finland, and Norway. The company builds value to its customer base by combining expertise in research, consulting, and people. Capacent in Sweden focuses on management consulting services with a financial edge. Its philosophy is based on creating measurable value for clients by delivering sustainable results and using consultants with broad and relevant experience. For more information, visit www.capacent.se.