ITC GreenToCompete Hub Nepal has launched a new partnership with the NMB Bank Limited to scale up access to green finance for small agricultural businesses. This new financing approach, the first of its kind in Nepal, will support sustainable agriculture. The partnership aims to bridge the gap in access to finance so that farmers and agribusinesses can grow.
A vital sector that’s underfinanced
About 60% of Nepalis work in agriculture, which contributes 26% to the national GDP. High-value crops like cardamom, tea and coffee are exported to South Asia, the United States and Europe. But small agroprocessing businesses face challenges in securing financing. Commercial banks usually require real estate collateral. Hilly areas used to grow coffee and tea grow are often deemed unsuitable for financing.