To improve financing for Bhutan’s rural and agricultural sectors, the Bhutan Country Investment Roundtable was held in the capital yesterday. The event brought together over 25 representatives from financial institutions, microfinance organisations, civil society, and agribusinesses. Organised by the Bhutan Development Bank Limited and the Food and Agriculture Organisation of the United Nations, the meeting focused on addressing urgent challenges in rural finance and exploring innovative solutions to stimulate agribusiness growth.
During the meeting, participants discussed the need for targeted financial inclusion strategies and identified barriers like limited access to digital financial services.
The meeting also highlighted the lack of infrastructure and financial literacy in rural parts, which has severely limited access to finance for rural businesses.
In addition, an assessment of Digital Financial Services or DFS in Bhutan revealed that while 80 per cent of adults have savings accounts, only 31 per cent use mobile payment systems. It also highlighted that the country’s mountainous terrain and unreliable telecommunications infrastructure further limit DFS reach in rural areas.
“The existing structure of policies here are good. However, it seems we have to focus on one or two of the major policies. For example, if we want to open the market for products coming from far-flung areas, we need a financing mechanism to support those products to come to Thimphu and Phuntshogling market to get a higher price,” said Prasun Kumar Das, Secretary General, Asia-Pacific Rural and Agricultural Credit Association.
The roundtable discussions also pointed several persistent issues hindering agribusiness development in the country, including an underdeveloped digital finance system and limited private sector participation.
“When it comes to access to finance perspective, we have many financial challenges, both macro and micro level individual business economic challenges. The challenge we face on a micro level, we do not have a full-fledged agri-business ecosystem. In Bhutan, it is not fully matured,” said Tshering D. Dorji, Financial Inclusion and Literacy Project Officer, Royal Monetary Authority of Bhutan.
Despite these challenges, the roundtable identified opportunities such as expanding mobile financial services, advancing government-led digital initiatives, and improving financial literacy, particularly for women and the elderly. Participants also stressed the need to strengthen agent networks and enhance physical access to financial services in remote areas.
“Building on the international best practices, focusing on what the neighbouring countries have done. The kind of issues Bhutan is grappling with today, some countries have already faced the same things and found solutions. However, we are not advocating for copying those solutions but rather adapting those solutions in the Bhutanese context,” said Aziz R. Arya, Programme and Policy Officer from FAO’s Regional Office for Asia and the Pacific.
The event also launched a five-day rural finance training programme starting today to equip financial institutes and agribusinesses with the tools to improve the country’s financial ecosystem.
Karma Samten Wangda
Edited by Sonam Pem
