Agency:

The International Finance Corporation (IFC) – a member of the World Bank Group – is the largest global development institution focused exclusively on the private sector in developing countries.

Context:

Bhutan is a landlocked mountainous country with agriculture as the primary contributor to the national economy, employing 56% of the population and contributing 19.2% to GDP in 2021. As a result, agribusiness is a priority sector in the country. IFC program seeks to support the Royal Government of Bhutan to enhance sustainable agriculture in Bhutan through private sector participation.

Objective:

The project objective is to identify funding opportunities for Agri Value Chains in Bhutan, as part of an ongoing effort to map supply side constraint in the country.

Intervention:

FinValue is responsible for evaluating the Agri-finance capabilities of financial institutions using a digital lens. This involves conducting primary research through consultations with regulators, financial institutions, and other entities providing digital financial services. Review includes understanding Digital Financial Services guidelines and payment trends for various options, the status of Digital Public Infrastructure, Key players and their geographical reach, and enablers and constraints in the market.

Outcome:

The recommendations from the diagnostic will be help IFC engage with banks and MFIs in Bhutan to develop commercially viable value chain financing models, client-centric agri financing solutions, credit scoring systems and risk frameworks, and smart agri finance products.