Govt and World Bank launch USD 80 million Rural Enterprise and Economic Development Project

The project aims to boost Nepal’s agriculture sector by strengthening rural market linkages and promoting entrepreneurship while creating jobs to support post-Covid-19 recovery. (Photo: World Bank)

NL Today

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Kathmandu: The government and the World Bank have jointly launched ‘The Rural Enterprise and Economic Development (REED) Project’.

The project aims to boost Nepal’s agriculture sector by strengthening rural market linkages and promoting entrepreneurship while creating jobs to support post-Covid-19 recovery, the World Bank in a statement.

The project was jointly launched today by Minister of Agriculture and Livestock Development Mahindra Ray Yadav and World Bank Country Director for Maldives, Nepal, and Sri Lanka Faris Hadad-Zervos.

The project is financed with an $80 million credit from the World Bank and is expected to leverage additional funding from producers, financial institutions and local governments in the next four years.

“In the context of Nepal’s agriculture sector transformation and Covid-19, ensuring market linkages of the produce of smallholder farmers, farmer groups, and cooperatives is critical to accelerating recovery of the sector and the economy from the pandemic’s impacts,” stated Minister Yadav.

“This project will help to increase the income of smallholder producers and farmers, promote agriculture entrepreneurship, and create jobs in rural Nepal.”

The REED project will be implemented in selected municipalities in five economic corridors covering Provinces 1, 2, Bagmati, Gandaki, Lumbini and Sudurpaschim to foster sustainable linkages for rural entrepreneurs.

The project is aligned with the government’s Agriculture Development Strategy 2015-2035, and will work with provincial and local governments, intermediary organizations, and small and medium enterprises, especially those that are women-led to strengthen the agriculture sector and entrepreneurship ecosystem.

The project is financed with an $80 million credit from the World Bank and is expected to leverage additional funding from producers, financial institutions and local governments in the next four years.

The project will also help improve production through investments in municipal agriculture centers and value chain infrastructures to ensure the availability of inputs for farming as recovery actions from Covid-19.

The project will use labor-intensive Cash for Work mechanism in infrastructure works and is expected to create short-term jobs for over 5,700 people including women to support economic recovery from Covid-19.

“The project supports Nepal’s green, resilient, and inclusive development and provides an opportunity for the government and the private sector to work together to build the ‘Nepal’ brand in the agriculture sector,” stated World Bank Country Director for Maldives, Nepal and Sri Lanka Zervos.

“In doing so, the project can stimulate many niche sectors such as coffee, tea, fruit, and medicinal products, among others, to help them grow and to support a resilient recovery from the pandemic.”

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