IFC's $56M Boost for Gender and Climate Finance in Nepal through Global IME Bank

The International Finance Corporation (IFC) is investing $56 million in Global IME Bank Limited (GIBL), Nepal's largest commercial bank. The goal is to make the small and medium enterprise (SME) finance market more competitive, while also making sure more people have access to financial services, creating jobs, and helping the country achieve its climate-related objectives.

This investment is a big deal for Nepal's financial sector. It will help GIBL assist small and medium-sized businesses (SMEs), aiding them in recovering from the effects of COVID-19. The focus is on women-owned SMEs and those in rural areas.

Half of the money from the investment will be split equally between projects that help the environment (like clean transportation and solar projects) and those supporting women in business. The other half will be used exclusively to lend to small businesses in Nepal.

This marks the first time a development financial institution is providing special funding for gender-related initiatives to a bank in Nepal. Small businesses are crucial to Nepal's economy, contributing 22 percent to the GDP and employing almost two million people. Despite this, many of these businesses struggle to get financial support. The investment aims to address this issue and contribute to Nepal's climate goals.