The SMART project focuses on expanding business opportunities for microenterprises by providing access to finance, prioritizing investments in climate-resilient Resource Efficient and Cleaner Production (RECP) practices.

Through its Partner Organizations, PKSF will offer loans to MEs to implement commercially viable and environment-friendly improvements. These loans aim to enhance the productivity and competitiveness of MEs across 21 selected sub-sectors in agriculture, manufacturing, and service sectors, with potential for expansion based on environmental impact and growth potential.

Key Sub-components

Line of Credit for Climate-Resilient RECP Practices: This sub-component provides sub-loans to MEs that adopt sector-appropriate climate-resilient RECP business improvements. The selection of financed projects is guided by assessments conducted under the project, with ongoing monitoring using digital tools. Special provisions ensure women-owned MEs have access to collateral-free loans.

Line of Credit for Revenue-Generating Common Facilities: This sub-component funds the establishment and upgrade of common facilities that promote RECP and pollution reduction. These facilities, managed by MEs or communities, include businesses such as vermicompost centers, recycling centers, and storage facilities.

To ensure effective implementation, the project will adhere to the existing regulatory framework and microfinance regulations. The project also plans to pilot a digital tool for loan processing and monitoring, improving efficiency and reducing transaction costs. PKSF will closely monitor the compliance of POs with eligibility criteria to maintain the integrity of its financing program.