Supporting Micro, Small, and Medium-Sized Enterprise Development and Access to Finance

proposed

The technical assistance will support the preparation of a comprehensive diagnostic study on the current micro, small, and medium-sized enterprise (MSME) landscape in Nepal to identify various policy and institutional constraints, regulatory bottlenecks in providing finance to MSMEs, other impediments to access to finance, credit supply, and demand gaps. It will also identify adequacy of financing instruments and options, and institutions to support capital market development and financial inclusion. The TA outputs will be used as an upstream tool to design a follow-on MSME finance sector development program to address pressing issues in the MSME sector and recommend policy actions. A feature of this TA will include capacity building components to bolster technical and adaptive capacities of regulators, financial institutions, and MSMEs./The TA supports strategic focus areas on private sector development (primary), climate action, resilience and empowerment, and digital transformation. The TA supports OP1, OP2, and OP6.