10012159-Scaling for Impact - SME Challenge Fund

Green Resilient Agricultural-Centred Private Sector Economic Development (GRAPE 2) works with the Government of Nepal to promote sustainable economic development. The project collaborates with Nepali and international partners to strengthen entrepreneurship, build climate resilience, and create new economic opportunities for women and youth. The project connects producer groups, entrepreneurs, cooperatives, traders, associations, policy makers, and other stakeholders. By strengthening these connections, it aims to create a vibrant entrepreneurial ecosystem that supports agriculture-centred private sector development in Nepal.

GRAPE 2 project is jointly financed by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ). It is implemented under the guidance of the Ministry of Land Management, Co-operatives, Federal Affairs & General Administration.

The Areas of Work are:

1. Driving Private Sector Development: Inclusive and resilient agricultural markets require strong local businesses. Support is therefore provided to Nepali enterprises and cooperatives at different stages of growth.

Start-ups can access incubation programs to develop and test their ideas, while emerging SMEs benefit from coaching and advisory services to strengthen their business models. More established companies are supported to build partnerships that strengthen agricultural value chains and market systems, including access to international markets, such as the EU.

The project connects entrepreneurs, producer groups, investors, and other market actors to strengthen collaboration across agricultural value chains. It promotes innovation, digital solutions, and value addition, improves access to business services, and helps small producers and entrepreneurs reach national and international markets.

2. Strengthening Climate Resilience Climate change is already affecting agriculture in Nepal. The project supports farmers, businesses, and local governments in adapting to these changes and building more resilient agricultural systems.

As a key driver of climate action, Small and medium-sized enterprises (SMEs) receive support to adopt climate-smart practices, develop green business models, and manage climate risks in agricultural value chains. Strengthening the environmental performance of businesses also helps them access new markets and financing opportunities, particularly for sustainable and biodiversity-friendly products.

GRAPE 2 works with farmers, local communities, and civil society organizations to promote sustainable farming practices, resource-efficient technologies, and circular economy solutions. Through collaboration and shared learning, the project strengthens green entrepreneurship, supports local climate governance, and scales innovative solutions that enhance climate resilience and adaptation.

3. Empowering Women and Youth Women and young people are central to inclusive economic development. Through the project, women entrepreneurs receive business development support, guidance on accessing financial services, and opportunities to connect with networks that strengthen their skills, confidence, and business growth.

Young innovators are supported through the incubation lab, which helps start-ups develop and launch new business ideas.

Media organisations, civil society groups, and community-based organisations raise awareness of women"s economic contributions and challenge restrictive gender norms. Dialogue platforms, media campaigns, and community events highlight the achievements of women and youth entrepreneurs and encourage public discussion on evolving social roles.

At the institutional level, municipalities are supported to apply gender-responsive planning and budgeting so that women"s priorities are better reflected in local economic development. Through the agri-tech fellowship, young graduates are placed in municipalities to gain work experience, while infusing fresh perspectives in local governance processes.