Washington, April 28 2003—The International
Finance Corporation, the private sector arm of the World Bank Group, signed
a Memorandum of Understanding with Minera Yanacocha, to mark the launch
of the second stage of its joint small and medium enterprise (SME) linkage
program. The program will help local businesses benefit from investments
in the mining industry in the Cajamarca Department of northern Peru. IFC
is contributing up to $1.5 million to the program, which is linked to its
investment in the Minera Yanacocha SA gold mine.
The SME linkage program aims to develop a diversified and sustainable economic
base beyond the operations of the mine. It targets several key areas, including
supply chain development, capacity building, and access to finance. The
program has received significant support both from Minera Yanacocha and
from the community because of its anticipated developmental impact. Partner
organizations such as Swisscontact, TechnoServe, and Aid to Artisans, among
others, are responsible for implementing the various elements of the program
in their areas of expertise. An IFC program coordinator based in Cajamarca
has been hired to provide on-site implementation.
Various technical assistance and training programs have already started.
Local SME suppliers of goods and services are participating in a total
quality management training program focused on international standards
in safety, environmental, and business practices. This will allow the SMEs
to improve their chances of winning more of the supplier contracts awarded
by Minera Yanacocha. Currently, 16 enterprises out of a targeted
34 are receiving training.
A training program for construction tradesmen started in November 2002,
and 24 individuals have already been trained in modern construction technology.
These tradesmen will now be prepared to respond to the increased
demand of the construction sector, as a result of the economic activity
of Minera Yanacocha.
Another training program is providing assistance to local agribusinesses
in areas such as quality assurance, manufacturing practices, pricing structures,
and technological know-how. Similarly, local artisans in the ceramic and
textile sectors are receiving technical training to upgrade their design
skills and production capacity as well as to link their products to both
domestic and international markets.
The program will also contribute to the development of new financial products
and services for the local small business market. It is expected to facilitate
the access of those businesses to working and investment capital. The
program is intended to open markets for local producers and subcontractors
and reduce the need to source similar goods and services from other parts
of Peru. All components of the program are being delivered in close
cooperation with the mine to help ensure maximum impact and to complement
Minera Yanacocha’s substantial investments in social and environmental
Peter Woicke, Executive Vice President of IFC, notes that “while gold
mining plays a central role in the economic growth of the region, this
program should help small businesses find ways to contribute to a diversified
and sustainable economic base beyond the mining operations of Minera Yanacocha.”
IFC’s mission 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. Since its founding in 1956
through 2002, IFC has committed more than $34 billion of its own funds
and arranged $21 billion in syndications for 2,825 companies in 140 developing
countries. IFC’s worldwide committed portfolio as of FY02 was $15.1
billion for its own account and $6.5 billion held for participants in loan