Rio de Janeiro, Brazil, June 12, 2008—IFC,
a member of the World Bank Group, and Tribanco, a Brazilian microfinance
bank, have sponsored a meeting for senior executives from top private sector
firms to discuss ways to increase economic opportunities for communities
in the developing countries where they operate. The meeting focused on
support for entrepreneurs at the base of the economic pyramid. Other partners
for the event include the Harvard Kennedy School's CSR Initiative and the
International Business Leaders Forum.
Discussions highlighted systemic challenges
that companies face, including building entrepreneurs’ skills and capacity
and improving their chances to access financing.
“Even though our bank has made exciting
strides in the past three years, reaching more than 3 million lower-income
credit card customers, we see many opportunities to help more clients access
Brazil’s financial system. To tap these opportunities, we must find ways
to incorporate local entrepreneurs into our value chain. To co-host
this event with IFC in Brazil gave us an opportunity to share our own strategy
on how to serve the base of the pyramid consumer and to learn from other
successful models in Brazil and other countries, ” said Juscelino Martins,
Chairman of Tribanco.
"At Unilever, we have different programs
that work directly with entrepreneurs both in Brazil and other developing
and emerging countries. We have set up a locally run system of distribution
that allows local small business owners to become part of our distribution
chain, allowing them to generate some income and create jobs. We are however
always looking for ways to make our interactions more sustainable and easily
adaptable to other countries'. said Mr. Kees Kruythoff, CEO of Unilever
Brazil.
“IFC has a strategic priority to extend
our business to companies that operate in the poorest parts of the world
and to reach people at the base of the pyramid,” said Rachel Kyte, IFC
Vice President for Business Advisory Services. “We do this by working
with financial institutions and investing in companies that support lower-income
people and entrepreneurs. We also work with large companies whose supply
chains benefit poor people.”
Participants included multinationals such
as Coca-Cola, Nestlé, SABMiller, Starbucks, Newmont Ghana, and Unilever.
The three IFC clients in Brazil sharing their experiences were—Tribanco,
a microfinance provider to small retail shops; Ruralfone, a low cost cell
phone operator in the northeast; and Cemar, an electric company in the
northeastern state of Maranhao. Kyte noted that there was consensus among
all companies that they only succeed when the communities where they operate
also benefit.
About IFC
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people should
have the opportunity to escape poverty and improve their lives. In FY07,
IFC committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
For more information about IFC’s partners,
please visit:
International Business Leaders Forum, www.iblf.org
CSR Initiative at Harvard’s Kennedy School,
www.hks.harvard.edu/m-rcbg/CSRI
Tribanco, www.tribanco.com.br
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