Transcript Country profile(brief) based on HDI 2004

Savings and Credit Cooperatives
for Economic Empowerment of
Women
Yagya Ghale
CMF, Kathmandu, Nepal
Background
 Nepal is a Himalayan Kingdom
 Total Area
147,181 Sq. Km
 Geographically divided into three regions Moutain
35%
 Hill
42%
 Terai (plains) 23%
Conti..









Population
2,31,51,423
Male
1,15,63,921 (49.9%)
Female
1,15,87,502 (50.1%)
People live in rural areas
85.8 %
Literacy rate
54%
Engaged in agriculture
>65%
Population growth rate
2.25%
Agriculture growth rate
2.3%
Agriculture Contribution to GDP
39.3%
Cultural Heritage
 About 102 caste/ethnic groups of people
 About 91 languages/dialects in use
 Nepali is a national language
 Nepali and English used as official
language
 Wood and stone carving, and pagoda
type of architects are famous in the world
Status of Women and
Cooperatives
Status
 Women Population
1,15,87,502 (50.1%)
 Women literacy rate
26%
 Landholding by women
8.1%
 Women ownership of both house and land
4%
 Women have limited access and control to resources
Women Cooperatives




Total Cooperatives
Women cooperatives
Total Savings and Credit Cooperatives
Women Savings and Credit Cooperatives
6,484
557 (8.5%)
532
280 (52.6%)
Center For Micro-Finance (CMF)
Nepal
Sustainable Micro-finance for Poverty Alleviation
and Women’s Empowerment
Estd. July 21, 2000
Vision: To improve access to sustainable micro
finance services for the poorest families
Mission: To strengthen institutional capacity of
micro finance institutions in the country
Objectives







Provide micro-finance training, technical
assistance and consultancy services
Undertake research studies, publications and
arrange seminars/workshops
Promote awareness and commitment to "microfinance best practices"
Collaborate with national and international
organizations
Develop as a micro-finance resource center
Assist in formulation of legal framework to
create conducive environment for micro-finance
Create awareness in gender dimensions of
micro-finance
Programs and Services

Technical assistance

MF training programs

Study tours and internships

Networking and communication

Research and documentation
Projects implemented by CMF







Strengthening of micro-finance sector in
Nepal/FORD FOUNDATION
Impact assessment of savings and credit ooperatives
in the hilly districts/FORD FOUNDATION
Strengthening of Women Savings and Credit
Cooperative Project ( MJII)/CANADIAN
COOPERATIVE ASSOCIATION (CCA)
Pilot testing of micro-insurance services to poor
clients of MFIs/CGAP
Strengthening of Community-based Self-Help
Cooperative Ltd.(CSCL) /GTZ
ASIA-ITC (IT Support)/PLANET FINANCE
TRCP/ KMTNC
Working areas
Coverage of CMF
Coverage of CMF
Training
support
MJ II
Morang, Banke
NBS / CARE
Dolkha, Kavre, Kathmandu, Lalitpur,
Bhaktpur, Dhading, Chitwan, Banke,
Morang, Shiraha, Saptari, Sunsari,
Tanahu, Kaski, Nawalparasi, Sarlahi,
Makawanpur, Rauthat, Parsa,
Dhanusha, Rupendehi, Ilam
GTZ /
NGOFP
Parbat, Kapivastu
GTZ /
ISFP
Dadeldhuda, Doti,
Achham, Darchula
Micro-insurance
Dhading, Kavre, Nawalparasi
IMPACT
Training
support
Ilam, Dolkha, Tanahu, Kavre
Morang, Banke
,NBS/CARE
CCA’s Support for Poverty
Reduction
“Strengthening of Women Savings and Credit
Cooperatives Project” for economic
empowerment to the poor women
Goal

To increase the effectiveness and impact of
savings and credit cooperatives in reducing
poverty
Purpose

To improve the social and economic well being
of at least 15,000 poor-rural women
Target Beneficiaries

15,000 poor rural women members of 50
community based Women Savings and
Credit Cooperatives (SCCs) benefited
Major activities

Capacity Building of 30 Women Savings and
Credit Cooperatives

Consolidation and Institutionalization of 200
Women’s Savings and Credit Groups
Acheivements

Improved Financial Services through SCCs

Social Intermediation

System Building

Consolidation and Institutionalization of
SCGs
Summary Table of the
Achievements
SN
Indicators
Unit
Achievement
Sept 2002
Sept 2004
5,684
10,526
7,055
13,116
2,125
8,532
1
2
Household covered
No of members
No
No
3
No
4
No of loans provided
to members
Outstanding loan
NRs
16,517,057
51,944,717
5
6
7
Total savings balance
Share
Reserves
NRs
NRs
NRs
13,101,486
2,064,379
2,438,188
39,133,716
6,194,269
4,902,235
8
Assets
NRs
21,419,099
58,206,508
Challenges faced
Internal

Institutionalization of small groups of young
women with limited financial and human
resources

Securing sustainability

SCCs generally did not have the required
financial or managerial resources

Institutional constraints of SCCs
External

Ongoing Maoist insurgency

Political instability of the country

Legal constraints
Steps taken to overcome the
challenges

Started a process to consolidate and
institutionalize the small women groups

Provided training and technical assistance

Used institutional assessment tool and
monitoring database

Recruited highly qualified and experienced
staff
Lessons Learned

No Maoist interference due to communitybased, locally-owned and managed
Savings and Credit Cooperatives (SCCs)

Women owned and managed SCCs are
highly effective in the field of savings and
credit mobilization activities.

SCCs have been proven as a good forum to
the poor rural women for active
participation in community development.
Conti…

Need to build awareness of gender
issues among board and general
members

MF intervention is effective for targeted
women

Women tend to be more responsible in
terms of money management

Need to sustain the impact of microfinance services

Local government and line agencies are
cooperative with women SCCs.
Remaining challenges

Strengthen the institutional capacity of
the SCCs for sustainability

Need to deliver of better services to the
poor women to reduce poverty level
How to overcome the challenges?

Project extension for three years has been
expected from CCA

Scaling up the institutional capacity to the
financial self-sufficiency

Delivery of better MF services to 25,000
poor women

Comprising each SCC with average 500
members
Activities foreseen in the extended
phase of the project

New product with market research

Expansion of geographical coverage

Advance level of TA/training and exposure visits

Enhance networking and linkages

Micro insurance

BDS (Business Development Service) linkages

Study on Social Impact of the project

Documentation and dissemination of experiences
Project activities