Cost-Effective, Sustainable Sector Development

IFC-SEDF in Bangladesh designed an innovative, sustainable and scaleable implementation model that moves effectively from market entry to pilot programming and stimulates sustainable market up-take. The program focused on direct interaction with pilot businesses in target sectors to learn what works and what does not work, in order to stimulate system-wide change.

For example, in the ready-made garments (RMG) sector, SEDF co-financed technical assistance to pilot firms for productivity improvement services. SEDF also co-financed pilot trade shows through the RMG Association, and funded technical training institutes and consulting firms for curricula and service development.

Since SEDF exited, the trade association, consulting firms and training institutes continue to offer services to increasing numbers of RMG firms. From 2003 to 2005, the program directly supported technical assistance and training to 136 enterprises, 20 service providers, 11 apparel buying houses and 3,017 individuals.

Assisted firms and service providers report increased sales over US $114 million and increased assets over US $35 million. Assisted firms created 16,239 new jobs. One firm increased its outreach from 46,000 to 75,000 small-scale farmers. The total program cost was US$6.08 million for a “leverage value” of total program costs to sales increases in assisted clients of 1:19.

Sector Development and Business Services (SDBS) is a program of the International Finance Corporation (IFC)’s South Asia Enterprise Development Facility (SEDF), based in Bangladesh covering Nepal, Bhutan and North East India, funded by IFC, DFID, EC, NORAD, CIDA, the Netherlands government and ADB. The SCBS mission is to increase economic opportunity for the poor by enhancing sustainable microenterprise competitiveness.

For more information, contact Deepak P. Adhikary at dAdhikary@ifc.org or see www.bdsknowledge.org and www.sedf.org