Investor Presentaiton
Small Farmer Agriculture Cooperative in Nepal provided significant help to
farmers to access finance, develop their business & improve their livelihoods
AContext
Women-led Small Farmers Agro Cooperative
Limited
• Est. in 2004, -2000 members
• Provides financial & non-financial services
to its farmers
Affiliated with 2 institutions
NACCFL1: Market access, capacity
building & networking
SFDB2 Financial services
What did the cooperative do?
Adopted strict criteria for membership
•
Entry fee requirement & must be a community member
Ability to save a certain amount monthly
Strict screening of loan applications at each org. tier before approving
low interest rate loans
Market linkage with NACCFL¹ provides tailored support e.g.
•
Connecting farmers to buyers e.g. via a marketing dept. that helps
connect to farmers to marketers in different cities in Nepal
Technical & skills based training e.g. business plan development
SFDB² formed with group investments from co-op, GoN³, other
commercial banks helps fulfill credit needs
•
Mobilizes capital, savings & loans from comm. banks, donors, GoN³
Key successes
Access to micro loans which helped diversify rural livelihoods,
increase incomes & business development
Won national award amongst 350 co-ops in the country
Proper management of financial resources
100% loan repayment
Nepal
Developed sustainable culture of savings & loans investment
Efficient governance system
Structured in a 3 tiered hierarchal organization
Promotes democracy, consensus & cohesion within the group
Learnings for Plateau State
Ensure strict criteria to become member of co-op
E.g. using financial buy-in & ability to save monthly criteria creates
sense of responsibility & ownership
Target most deserving farmers by doing surveys in community
Form partnerships with financial & non-financial organizations, DFIs
To support co-ops grow, help farmers scale up and mobilize financial
resources
Hierarchal organizational structure for efficient decision making
Ensures proper screening (e.g. loan approvals & other big decisions)
Control of membership: ensure any break of contract will result in
restricted access to benefits in the future
1. Nepal Agricultural Cooperative Central Federation Limited and umbrella organization, 2. Small Farmers Development Bank, 3. Government of Nepal
Source: BCG Analysis
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