IFC to support small and medium enterprises of Nepal

27 May, Kathmandu : The International Finance Corporation (IFC) has said it would support revitalise the private sector of Nepal which has been weakened due to the impact of COVID-19.

IFC’s country manager for Nepal, Bangladesh and Bhutan, Wendy Werner, shared this in a webinar organised Tuesday by the Society of Economic Journalists of Nepal (SEJON). The IFC is a sister organization of the World Bank and member of the World Bank Group. It is the largest global development institution focused on the private sector in developing countries. The Bank Group has set two goals for the world to achieve by 2030: end extreme poverty and promote shared prosperity in every country.

Speaking on the topic, ‘Role of Private Sector and IFC’s Upcoming Programmes in the Difficult Situation of COVID-19’, the IFC country manager said the private sector has a crucial role to play in such situation. He said the service sector of Nepal including the tourism sector has been badly affected since the beginning of COVID-19, and that this would remain for some time in future as well.

He reiterated that the small and medium enterprises would play a significant role by creating employment in the economy badly dented by the pandemic. Werner said IFC would play a supporting role on the whole in Nepal and not only as the equity investor of the private sector in Nepal.

According to him, IFC has forwarded a total package of 48 million US Dollars to fight against economic damage caused by coronavirus pandemic globally. It has been directly providing assistance to 300 organisations from this package.

IFC has been supporting the banks and micro finance companies run by the private sector in Nepal. Werner informed that this year IFC shall support the small and medium enterprises as well.

IFC’s investments in Nepal will reach 500 million US Dollars by the end of this year. It has the goal of investing 1.2 billion in the private sector of Nepal by 2023.