The Rural Enterprise and Economic Development Project, worth USD 80 million, has been inaugurated.

0

It was with the assistance of the World Bank that the Rural Enterprise and Economic Development (REED) Project was started by the government of India.

The initiative was officially launched on Thursday by the Minister for Agriculture and Livestock Development, Mahindra Ray Yadav, and the World Bank’s Country Director for the Maldives, Nepal, and Sri Lanka, Faris Hadad-Zervos, during a special ceremony held at the Ministry. The project intends to promote Nepal’s agriculture sector by rural links and encouraging entrepreneurship, while also providing jobs to aid in the country’s recovery following the COVID-19 disaster.

The REED project will be funded in part by a USD 80 million loan from a multilateral lending organization. In the following four years, it is projected to further support from producers, financial institutions, and local governments.

Minister Yadav stated that the project will assist in increasing the income of smallholder producers and farmers, promoting agricultural entrepreneurship, and creating jobs in rural Nepal, among other things. “In the context of Nepal’s agriculture sector transformation and COVID-19, securing linkages for the produce of smallholder farmers, farmer groups, and cooperatives is crucial to accelerating the sector’s and the country’s recovery from the pandemic’s effects,” he explained. ”

According to a news release from the World Bank, the REED initiative will be implemented in chosen municipalities along five economic corridors, which will include Provinces 1, 2, Bagmati, Gandaki, Lumbini, and Sudurpashchim, in order to promote sustainable links for rural entrepreneurs. To achieve its goals, the project will collaborate with provincial and municipal governments, intermediate organizations, small and medium-sized firms (SMEs), particularly those run by women, to enhance the agriculture sector as well as the entrepreneurial ecosystem.

Additionally, the project will aid in the improvement of production by making investments in municipal agriculture centers and value chain infrastructures in order to secure the availability of inputs for as part of the recovery efforts from COVID-19. The project will make extensive use of the labor-intensive Cash for Work mechanism in infrastructure construction, and it is estimated to generate over 5,700 short-term jobs, much of which will be for women, to aid in the recovery of the economy following COVID-19.

In an interview with the World Bank’s Country Director Faris, he said the project has the potential to stimulate many niche sectors, such as the coffee and tea industries, as well as the fruit and medicinal product industries, among others, to help them grow and support a recovery from the pandemic. The project agreement for REED was signed by the government and the World Bank in December 2020.

Leave A Reply

Your email address will not be published.