The International Finance Corporation (IFC), the private sector lending division of the World Bank Group, has announced a significant investment of $55 million in Siddhartha Bank. This investment aims to enhance financial inclusivity for Nepal’s small and medium-sized enterprises (SMEs), particularly women-owned and underserved rural enterprises.
With this largest-ever investment in any financial institution in Nepal, IFC aims to address the substantial gap in SME financing, which currently amounts to $3.6 billion in Nepal. This gap has proven to be a major impediment to the growth and development of SMEs, impacting approximately 44% of such businesses in the country.
In such a context, this substantial capital injection will empower SMEs in the country to secure vital funding for growth, innovation, and operational enhancements. Furthermore, its emphasis on women-led businesses and rural SMEs extends a critical lifeline to these marginalized enterprises, which bear a disproportionate burden of limited financial access. Ultimately, considering that SMEs are the bedrock of Nepal’s economy, this investment is poised to ignite economic vibrancy, drive employment opportunities, and contribute to inclusive economic growth in the country.
