MEDEP Phase IV

MEDEP’s constant effort and technical support led the Government to replicate the MEDEP model in the name of Micro Enterprise Development for Poverty Alleviation (MEDPA) across Nepal's all 75 districts. By fiscal year (2012/13), the government has replicated this model into 45 districts and expanding to 5 more districts in 2013/14. The Cabinet has recently (on July 17, 2013) endorsed MEDPA operational guidelines which lays out a plan for overtaking MEDEP and expanding throughout the country and eventually, the government will contribute 33% of the total budget 4.1 billion Nepali Rupees from the core fund of the government with a commitment of 67% from the donors and development partners (AusAID/UNDP). Accordingly, in the fourth phase of MEDEP expansion (August 2013 - July 2018), government’s MEDPA programme will gradually take over MEDEP and expand it into a nationwide programme across all 75 districts. MEDEP facilitated the approval of a number of national level policy and guidelines to create an enabling environment for micro-enterprise development. In 2013, the GoN endorsed MEDPA Five Years Strategic Plan (2070/71 – 2074/75) and MEDEP IV Phase (2013/14 – 2017/18) document With these resources, government has targeted to create 73,000 of new micro-entrepreneurs while also providing scale up support for the 40,000 existing micro entrepreneurs. The GoN revised and finalised the Industrial Act in which micro-enterprise perspectives are included, and is drafting its Regulations. Other noteworthy policy level initiations are: developing of MEDPA Operational Guideline that includes, majorly, five components: Sub-contractual Guideline, CFC guideline, MEDF Guideline, Fiduciary Risk Guideline, and M&E Guideline.  

As the Government is internalizing MEDEP model into its own Micro Enterprise Development for Poverty Alleviation (MEDPA) Programme and implementing across Nepal's all 75 districts, MEDEP's role has been changed. Eventually, during the fourth phase (August 2013 - July 2018), government’s MEDPA programme will gradually take over MEDEP’s role of creating and sustaining entrepreneurs and MEDEP will more focus towards capacity building of government line agencies and private organizations for the sustainable delivery of micro enterprise Development services. Therefore, over the fourth phase (August 2013-July 2018) period, MEDEP's role will be changed with more specific focus on developing conducive environment and building institutional capacity of the Ministry of Industry and other partners for the sustainable delivery of MED services thereby contributing for reducing poverty through transferring entrepreneurship development knowledge and skills; creating, promoting, and sustaining micro-enterprises, and generating self-employment and employment opportunities to the rural poor.

With purpose to institutionalize MEDEP model through local governance along with the locally available resources, MEDEP developed draft of ten District Enterprise Development Strategic Plans (DEDSPs) for Terhathum, Sunsari, Udayapur, Sindhuli, Ramechhap, Kavre, Nawalparasi, Pyuthan, Surkhet and Baitadi in cost-sharing basis with DDCs in 2013. Apart from this, a total of NRs. 2,308,000.00 is recorded as the contribution of VDCs for micro-enterprise development (MED). This budget is US $ 24,042 (at the rate of US$ 96) against the expected budget of US $ 86,000 in 2013.




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