The Rural Enterprises and Remittances Project (RERP) "SAMRIDDHI" is a seven-year project jointly initiated by Government of Nepal|Ministry of Industry, Commerce and Supplies and the International Fund for Agricultural Development (IFAD). The Government of Nepal is lead agency for the execution of RER Project.
The project aims at reducing poverty with employment-focused and inclusive economic development by providing sustainable sources of income to poor households, migrant families. And returnees through creation of micro, small, and rural medium-sized enterprises as a means of developing local businesses and creating jobs and specifically includes returning migrants among those it supports.
Agro Enterprise Centre (AEC) of Federation of Nepalese Chamber of Commerce and industries (FNCCI), HELVETAS (an International Non-Governmental Organization) and selected financial institutions working within the project area are implementing partners.
RERP is being implemented from December 2015 to December 2022 with a total funding of approximately USD 23.23 million which includes grants from IFAD, contribution from Government of Nepal, and expected contribution from private sector and project beneficiaries.
The Project covers 16 districts namely— Morang, Sunsari, Saptari, Siraha, Bhojpur, Dhankuta, Khotang, Terhathum, Udayapur, Bara, Dhanusa, Mahotari, Rautahat, Sarlahi, Okhaldhunga and Sindhuli of the State 1,2 and 3 under the recently adopted new federal structure.The geographic area follows a road corridor approach linking districts along the main roads running south to north to facilitate the connection of hill districts to larger markets in Terai.
The Project targets a total of about 179,660 primary beneficiaries comprising around 60,000 enterprises and 30,000 unemployed youths. And aims to provide sustainable sources of income to poor households, migrant families and returnees by supporting range of credible economic opportunities that includes decent employment, local micro-enterprises promotion and micro-enterprises linked to high value farm & off farm supply chains having good growth potential following corridor approach.
In addition,it enables those beneficiaries still choose to migrate or who are returning to be better able to gain the full benefits of migration as a transformative step in their families' economic livelihoods.
RERP was classified as a problem project since its first Supervision Mission in December 2017 which concluded that problems in the project were the results of significant issues in the original design as well as in operational aspects. With continued low performance of the project, the September 2019 mission decided to restructure the project and was approved by the IFAD President on 10 March 2020 in response to the request from the Government of Nepal.The restructuring decision cancellation amount was equivalent to 49.8% of the original IFAD financing USD 68.15 million.
2. Goal and Development Objectives
Reducing poverty and achieve sustainable peace through employment focused,equitable and inclusive economic development.
2.2 Development Objective:
Viable rural micro, small and medium enterprises (RMSEs), both the farming and off- farming sectors, provide sustainable sources of income to rural poor households of migrant families and returnees.
3. Project Components
The project is organized into 3 components, summarized in the table below;
RMSE and Jobs Promotion
10,000 people on Supply chain
(Direct beneficiaries 40,000 people)
outreach of 30,000 people on Decent Jobs promotion
Outreach 1, 000
1.1 Supply chain development
Creating RMSE and job opportunities for producers, including smallholders, and other enterprises in competitive agricultural and non-agricultural clusters.
1.2 RMSE development (CCI strengthening)
Building sustainable business services to create opportunities for local RMSEs
1.3 Decent jobs
Through TVET, jobs placement and apprenticeships
1.4 Social mentoring
Mentoring households and groups to address common social risks using the Gender Action Learning System(GALS) from sub-component 1.1
50,000(+10,000 from Supply chain)
on mobilizing migrant resources and skills
2.1 Financial Inclusion
Financial & business education; improved supply of financial services via strengthening of co-ops,partnerships with Financial Institutions and risk sharing instruments
2.2 Mobilizing migrant resources and skills
Develop sustainable migrant services, especially at local level, via migrant resource centers, info desks and online services
3.1 Knowledge Management and M&E
To provide evidence-based continuous learning and improvement, support scaling-up of best practices in the project and by other actors
3.2 Project Management
For institutional support in overall
4. Key Performance Indicators
- 10% of reduction in the prevalence of child malnutrition, as compared to baseline
- At least 33 % of target entrepreneurs, vocational trainees and apprentices are women
- 30,000 rural youth access job placement services
- 30,000 RER/SAMRIDDHI-supported enterprises (20,300 new and 9,700 existing) are still in business after 3 years (RIMS), of which 33% owned by women/30% owned by migrant returnees
- 21,000 RER/SAMRIDDHI-supported vocational trainees and apprentices, of which 33% of women, are in gainful employment over at least 6 months