The World Bank has approved $34.5 million in financing to support Bhutan's efforts to enhance value addition and employment in its agriculture, livestock, and forestry sectors. This initiative is expected to benefit approximately 42,000 people, with a significant focus on women, who make up 65 percent of the beneficiaries.
The project, named "Accelerate Bhutan’s Job Transformation through Renewable Natural Resource Value Chains," aims to modernize Bhutan's Renewable Natural Resource sector by transitioning from subsistence-based activities to a market-oriented system. It is projected to create 12,000 full-time jobs by improving market access and trade opportunities. The project will also work on strengthening sustainable agricultural production, providing organizational support and grants, and enhancing market exploration capacity.
Cecile Fruman, Acting World Bank Country Director for Bhutan, stated that the project would "help unlock Bhutan’s green economic potential by transforming rural livelihoods through climate-smart practices, better market access, and value chain development." She emphasized that connecting small producers with markets and fostering innovations could lead to sustainable job creation while maintaining environmental sustainability.
Investment will focus on high-potential value chains such as dairy, citrus, potato, and emerging forest-based industries. Smallholder farmers will be encouraged to adopt climate-smart practices and access improved post-harvest technologies. The project aims to assist women in the rural workforce by providing labor-saving equipment to ease workloads and promote their participation in formal value chains.
Joachim Vandercasteelen, World Bank Economist and Task Team Leader of the project, highlighted that the initiative would "foster productive partnerships between producers and market actors through matching grants and targeted business development support." He noted that special attention would be given to women- and youth-led enterprises involved in reallocating jobs from farming towards services like processing and marketing.
The project's long-term goals include reducing food loss, increasing climate-smart agriculture adoption, promoting value addition, supporting carbon mitigation efforts over a 20-year period with an estimated reduction of 221,087 tons of CO₂ equivalent.
The financing package comprises $29.8 million from IDA financing and a $4.7 million PROGREEN grant. The World Bank has been supporting Bhutan since 1981; this new project reinforces their commitment to inclusive development aligned with climate resilience.