Janakpur, Nepal – 26 September 2023. The Global Green Growth Institute (GGGI) launched the Terai Agribusiness and Enterprise Challenge Fund (TAECF). TAECF is a grant program targeting micro- and small-scale agribusinesses in ten municipalities in the Dhanusha and Mahottari districts in the Madhesh province of Nepal. TAECF will disburse USD 1.56 million in grants over a 3-year period. In 2023, under the Incubation Program, GGGI has selected 39 micro scale enterprises and 28 small scale enterprises. These 67 enterprises, which include agri-input suppliers, cooperatives, private agriculture firms, traders, millers, and information communication technology (ICT) companies, aim at expanding their businesses by supporting farmers in growing climate-resilient crops and creating green jobs in the project districts.
Agriculture is the cornerstone of Nepal’s economy, contributing 27% of the nation’s GDP and providing livelihoods for 65% of the population. Despite its pivotal role, the agricultural sector faces challenges due to weak market linkages, resulting in restricted market access, high transaction costs, and limited value addition to agricultural products. While agribusinesses play a crucial role in connecting smallholder farmers with inputs and markets, the lack of access to finance hinders investments in agricultural production. In this regard, the TAECF aims to bolster the agriculture sector by providing grants to micro- and small-scale enterprises to expand and broaden their products and services, and delivery channels in the agriculture value chains.
“We are grateful to GGGI for empowering agri-enterprises through grants and emphasizing self-sufficiency in agriculture by supporting their productivity, strengthening the agricultural value chain, uplifting marginalized communities, and promoting sustainable farming practices in Madhesh province,” said Honorable Gobinda Prasad Neupane, Minister, Ministry of Land Management, Agriculture and Cooperatives of Madhesh. “I recognize the need to expand this program to other districts of Madhesh province,” emphasized Minister Neupane.
At the event, GGGI formally requested the honorable minister, mayors from project municipalities, and KOICA to present the signed agreements to all grantees. The agreements were for grant amounts of USD 4,000 and USD 20,000 to the micro-scale and small-scale grantees respectively. GGGI provides 70% of the total amount proposed by grantees, and the remaining 30% is to be provided as their co-contribution. Acting as a partner bank for GGGI’s TAECF, Laxmi Bank may decide to provide financial support in the form of loans to the grantees approved by GGGI
“Gratitude is extended to GGGI and all partnering organizations for their invaluable support in identifying worthy enterprises for the Challenge Fund grant,” said Ms. Yoonhee Chung, Deputy Director, KOICA. “We congratulate all recipients, urging them to harness these funds to the fullest extent while aligning with the shared goals of GGGI and KOICA for a prosperous and sustainable future,” Ms. Chung added.
“Through the Challenge Fund, GGGI is fostering climate-smart agriculture in Madhesh Province, Nepal, offering a vital opportunity for agribusinesses. This initiative not only generates income and jobs but also empowers women, returning migrants, and youth while addressing the pressing issue of climate change,” said Dr. Lasse Ringius, Country Representative, GGGI.
“Women make up a significant portion of the agricultural workforce and play a crucial role in food production, security, and economic growth. With about 42% of grantees of the TAECF being women-led ventures, we’re not just building resilient agribusiness, but a future of equality and prosperity,” added Dr. Ringius.
Following the award ceremony, the selected grantees will work closely with GGGI and government partners to implement climate-smart agriculture activities in the region. GGGI will offer consistent oversight and technical assistance throughout the implementation process. Drawing from the insights and experiences gained through the Incubation Program, GGGI will formulate a set of guidelines and a program framework for the Acceleration Program jn 2024.
Background of the Initiative
TAECF is a major component of GGGI’s Climate Smart Agriculture project funded by KOICA. The objective of the TAECF is to support micro- and small-scale enterprises to expand and broaden their products and services, and delivery channels, particularly in the agriculture value chains. As GGGI gears up for the implementation of the TAECF, it is expected to support 1,340 direct beneficiaries with full time job creation over three years. The indirect beneficiaries are expected to be 6,432 family members of selected agribusiness. More information on the TAECF can be found here
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