Project Background

Rural Enterprises and Remittances (RER) – SAMRIDDHI is a seven years’ project signed between the Government of Nepal (GON) and International Fund for Agricultural Development (IFAD) on 10 December 2015 covering 16 hills and Terai districts. It aims at providing sustainable sources of income to poor households, migrant families and returnees in the Eastern and Central Regions of Nepal, by supporting the creation and expansion of family, micro, small and medium rural enterprises, both in the farming and off-farming sectors. Ministry of Industry (MOI) is the Executing Agency. Agro Enterprise Center (AEC) under Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Helvetas Nepal, selected financial institutions and the business development service providers extending services to the rural areas are the key implementing partners. The Project comprises three inter-linked components encompassing the full set of interventions required to support RMSEs’ profitable and sustainable growth:

  • Component 1: Promotion of RMSEs aims at (i) strengthening micro and small entrepreneurs, migrants and their families with sustainable access to adapted Business Development Services (BDS), i.e. non-financial services in support to enterprise creation and/or expansion; and (ii) vocational training and apprenticeship to poor households to build their skills and to secure gainful wage employment in RMSEs. Activities will be driven by an assessment of markets, business opportunities and available services and by an inventory and classification of existing RMSEs through a validation process.
  • Component 2: Productive Investment builds on results of component 1 and aims at (i) facilitating RMSEs/migrants/remittance recipient households’ access to financial services at an affordable cost by sustainable financial institutions; and (ii) mobilizing migrants’ resources and skills for creating assets and promoting profitable rural enterprises. It will develop innovative financial instruments designed to offset major constraints faced by RMSEs in accessing investment loans at an affordable cost and to stimulate migrants’ savings and investment in profitable business development.
  • Component 3: Institutional Support and Project Management aims at promoting a favorable policy and institutional environment supporting the development of RMSEs at a national scale and the contribution of migration to sustainable development.

Working Districts of RERP/SAMRIDDHI

Implementation Arrangements

The MOI is overall responsible for coordination and oversight. A Project Management Office (PMO), to be located in Itahari, is responsible for day-to-day implementation of project activities with support from two Corridor Teams providing technical and management support to Enterprise Service Centers (ESCs) and migration-related activities at the district level. Technical partners – Helvetas Nepal and PROCASUR (RoutAsia) will support to implement of vocational training and knowledge management aspects. Besides, selected financial institutions and business development service providers’ are expected to support the implementation. A Project Steering Committee headed by MOI Secretary at the national level will provide oversight and guidance.

Expected Results

The development objective is that viable RMSEs, in both farming and off-farming sectors, provide sustainable sources of income to poor households, migrant families and returnees. Main indicators are: (i) 60,000 RER supported rural entrepreneurs expand their existing business or create a new one; (ii) 30,000 rural youth access job placement services; (iii) 30,000 RER-supported enterprises are still in business after 3 years, of which 33% owned by women/30% owned by migrant returnees; and (iv) 21,000 RER supported vocational trainees and apprentices, of which 33% of women, are in gainful employment over at least 6 months.

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