IFC-SEDF to Partner CII, Ministry of Panchayati Raj’s Rural Business Hub Initiative in North Eastern States

Company News

New Delhi, December 8

The International Finance Corporation’s South Asia Enterprise Development Facility (IFC-SEDF) will partner with the Confederation of Indian Industry (CII) and the Ministry of Panchayati Raj to facilitate and support rural business hubs in Northeast India. This public-private partnership will establish five rural business hubs, assisting farmers, artisans, and small entrepreneurs to increase yields, improve quality, reduce transaction costs, and enhance market access.

IFC-SEDF’s collaboration with CII and the Ministry of Panchayati Raj aims to set up rural business hub pilots that are viable, scalable, and replicable in agribusiness, poultry, fisheries, handicrafts and alternative energy. The partnership will also support capacity building in Northeast India and support market linkages for business expansion and product marketing.

Mani Shankar Aiyar, Honorable Minister of Panchayati Raj, presided over the signing of the memorandum of agreement between CII and IFC-SEDF, and said, “The rural business hubs initiative is a flagship project of the Ministry of Panchayati Raj, launched in partnership with CII, and it is heartening to see IFC come forward to partner with us in this effort. The initiative aims to foster economic growth in rural India by facilitating direct linkages between industry and rural communities.”

Sunil Kant Munjal, Past President, CII, and Chairman, CII Mission for Inclusive Growth, noted that, “The rural business hubs initiative fits in well within the CII’s focus on inclusive growth. There is a need for a better understanding of the Northeastern region and a thorough analysis of the potential it offers.”

Iyad Malas, IFC Director, South Asia, said, “This partnership is in line with IFC's focus in India on rural sector development through private sector partnerships. Our overall approach is to work on projects in agribusiness or with rural linkages, help build rural infrastructure, and provide access to rural finance and related rural services.”

Anil Sinha, General Manager, IFC-SEDF, elucidated, “Our past work and experience in conducting research, instituting a capability building expert network and providing skill development and training, establishing market linkages, etc in the North East as also in other parts of South Asia will be useful in setting up RBHs in a challenging environment. We will also bring to bear our international expertise in this area.” Mr Sinha is also the Regional Coordinator for IFC South Asia’s Technical Assistance and Advisory Services (TAAS) group. TAAS is increasingly becoming a large component of IFC’s contribution to private sector growth in developing regions.

CII launched its program Mission for Inclusive Growth this year, which aims to mainstream economically backward parts of India by drawing together socially and economically backward classes into a virtuous cycle of growth, development and empowerment through a series of focused interventions in rural and urban India.

About IFC

The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit www.ifc.org.

About IFC-SEDF

IFC's South Asia Enterprise Development Facility (IFC-SEDF) is a multi-donor funded facility managed and operated by IFC. SEDF is one of the 11 regional programs being managed by IFC worldwide. Set up with the objective of promoting the growth of SMEs in the region, IFC-SEDF is funded by IFC and the governments of Netherlands and Norway, European Commission, DFID (UK), CIDA (Canada) and ADB. IFC-SEDF provides increased access to finance and quality business development services to projects in Bangladesh, Nepal, Bhutan, North East India, Sri Lanka and Maldives. IFC-SEDF also supports value addition to firms through tailored enterprise and organisation-specific technical assistance, capacity building programs, training, research, etc., and helps create an enabling business environment.

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