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 GDP39.3%

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 6,484  Women cooperatives 557 (8.5%)  Total Savings and Credit Cooperatives 532  Women Savings and Credit Cooperatives 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 finance services for the poorest families Mission: To strengthen institutional capacity of micro finance institutions in the country 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 "micro- finance 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

Coverage of CMF IMPACT Training support Morang, Banke NBS / CARE Ilam, Dolkha, Tanahu, Kavre Dolkha, Kavre, Kathmandu, Lalitpur, Bhaktpur, Dhading, Chitwan, Banke, Morang, Shiraha, Saptari, Sunsari, Tanahu, Kaski, Nawalparasi, Sarlahi, Makawanpur, Rauthat, Parsa, Dhanusha, Rupendehi, Ilam MJ II Parbat, Kapivastu GTZ / NGOFP GTZ / ISFP Dadeldhuda, Doti, Achham, Darchula Micro-insurance Dhading, Kavre, Nawalparasi Training support Morang, Banke,NBS/CARE Coverage of CMF Working areas

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 SNIndicatorsUnitAchievement Sept 2002Sept Household coveredNo5,68410,526 2No of membersNo7,05513,116 3No of loans provided to members No2,1258,532 4Outstanding loanNRs16,517,05751,944,717 5Total savings balanceNRs13,101,48639,133,716 6ShareNRs2,064,3796,194,269 7ReservesNRs2,438,1884,902,235 8AssetsNRs21,419,09958,206,508

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 community- based, 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 micro- finance 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