Savings and Credit Cooperatives for Economic Empowerment of

Women

Yagya GhaleCMF, 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% Women literacy rate 26% Landholding by women 8.1% Landholding by women 8.1% Women ownership of both house and land 4%Women ownership of both house and land 4% Women have limited access and control to resourcesWomen have limited access and control to resources

Women Cooperatives Total Cooperatives 6,484Total Cooperatives 6,484 Women cooperatives 557 (8.5%)Women cooperatives 557 (8.5%) Total Savings and Credit Cooperatives 532 Total Savings and Credit Cooperatives 532 Women Savings and Credit Cooperatives 280 (52.6%)Women Savings and Credit Cooperatives 280 (52.6%)

Center For Micro-Finance (CMF) Nepal

Sustainable Micro-finance for Poverty Alleviation Sustainable Micro-finance for Poverty Alleviation and Women’s Empowerment and Women’s Empowerment

Estd. July 21, 2000 Estd. July 21, 2000

Vision:Vision: To improve access to sustainable micro To improve access to sustainable micro

finance services for the poorest familiesfinance services for the poorest families

Mission:Mission: To strengthen institutional capacity of To strengthen institutional capacity of

micro finance institutions in the country micro finance institutions in the country

Objectives Provide micro-finance training, technical Provide micro-finance training, technical

assistance and consultancy servicesassistance and consultancy services Undertake research studies, publications and Undertake research studies, publications and

arrange seminars/workshops arrange seminars/workshops Promote awareness and commitment to "micro-Promote awareness and commitment to "micro-

finance best practices"finance best practices" Collaborate with national and international Collaborate with national and international

organizationsorganizations Develop as a micro-finance resource center Develop as a micro-finance resource center Assist in formulation of legal framework to Assist in formulation of legal framework to

create conducive environment for micro-finance create conducive environment for micro-finance Create awareness in gender dimensions of Create awareness in gender dimensions of

micro-financemicro-finance

Programs and Services

Technical assistanceTechnical assistance

MF training programsMF training programs

Study tours and internshipsStudy tours and internships

Networking and communicationNetworking and communication

Research and documentationResearch and documentation

Projects implemented by CMF Strengthening of micro-finance sector in Strengthening of micro-finance sector in

Nepal/FORD FOUNDATIONNepal/FORD FOUNDATION Impact assessment of savings and credit ooperatives Impact assessment of savings and credit ooperatives

in the hilly districts/FORD FOUNDATIONin the hilly districts/FORD FOUNDATION Strengthening of Women Savings and Credit Strengthening of Women Savings and Credit

Cooperative Project ( MJII)/CANADIAN Cooperative Project ( MJII)/CANADIAN COOPERATIVE ASSOCIATION (CCA)COOPERATIVE ASSOCIATION (CCA)

Pilot testing of micro-insurance services to poor Pilot testing of micro-insurance services to poor clients of MFIs/CGAPclients of MFIs/CGAP

Strengthening of Community-based Self-Help Strengthening of Community-based Self-Help Cooperative Ltd.(CSCL) /GTZCooperative Ltd.(CSCL) /GTZ

ASIA-ITC (IT Support)/PLANET FINANCEASIA-ITC (IT Support)/PLANET FINANCE TRCP/ KMTNCTRCP/ 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, KapivastuGTZ / 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 Strengthening of Women Savings and Credit Cooperatives Project” for economic Cooperatives Project” for economic empowerment to the poor womenempowerment 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 Capacity Building of 30 Women Savings and Credit CooperativesCredit Cooperatives

Consolidation and Institutionalization of 200 Consolidation and Institutionalization of 200 Women’s Savings and Credit GroupsWomen’s Savings and Credit Groups

Acheivements

Improved Financial Services through SCCsImproved Financial Services through SCCs

Social IntermediationSocial Intermediation

System BuildingSystem Building

Consolidation and Institutionalization of Consolidation and Institutionalization of SCGsSCGs

Summary Table of the Achievements

SN Indicators Unit Achievement

Sept 2002 Sept 2004

1 Household covered No 5,684 10,526

2 No of members No 7,055 13,116

3 No of loans provided to members

No 2,125 8,532

4 Outstanding loan NRs 16,517,057 51,944,717

5 Total savings balance NRs 13,101,486 39,133,716

6 Share NRs 2,064,379 6,194,269

7 Reserves NRs 2,438,188 4,902,235

8 Assets NRs 21,419,099 58,206,508

Challenges faced

InternalInternal Institutionalization of small groups of young Institutionalization of small groups of young

women with limited financial and human women with limited financial and human resourcesresources

Securing sustainabilitySecuring sustainability SCCs generally did not have the required financial SCCs generally did not have the required financial

or managerial resources or managerial resources Institutional constraints of SCCsInstitutional constraints of SCCs

ExternalExternal Ongoing Maoist insurgencyOngoing Maoist insurgency Political instability of the countryPolitical instability of the country Legal constraintsLegal constraints

Steps taken to overcome the challenges

Started a process to consolidate and Started a process to consolidate and institutionalize the small women groups institutionalize the small women groups

Provided training and technical assistance Provided training and technical assistance

Used institutional assessment tool and Used institutional assessment tool and monitoring database monitoring database

Recruited highly qualified and experienced Recruited highly qualified and experienced staffstaff

Lessons Learned

No Maoist interference due to community-No Maoist interference due to community-based, locally-owned and managed based, locally-owned and managed Savings and Credit Cooperatives (SCCs)Savings and Credit Cooperatives (SCCs)

Women owned and managed SCCs are Women owned and managed SCCs are highly effective in the field of savings and highly effective in the field of savings and credit mobilization activities.credit mobilization activities.

SCCs have been proven as a good forum to SCCs have been proven as a good forum to the poor rural women for active the poor rural women for active participation in community development.participation in community development.

Conti…Conti…

Need to build awareness of gender Need to build awareness of gender issues among board and general issues among board and general members members

MF intervention is effective for targeted MF intervention is effective for targeted womenwomen

Women tend to be more responsible in Women tend to be more responsible in terms of money managementterms of money management

Need to sustain the impact of micro-Need to sustain the impact of micro-finance servicesfinance services

Local government and line agencies are Local government and line agencies are cooperative with women SCCs.cooperative with women SCCs.

Remaining challenges

Strengthen the institutional capacity of Strengthen the institutional capacity of the SCCs for sustainabilitythe SCCs for sustainability

Need to deliver of better services to the Need to deliver of better services to the poor women to reduce poverty levelpoor women to reduce poverty level

How to overcome the challenges? Project extension for three years has been Project extension for three years has been

expected from CCAexpected from CCA

Scaling up the institutional capacity to the Scaling up the institutional capacity to the financial self-sufficiency financial self-sufficiency

Delivery of better MF services to 25,000 Delivery of better MF services to 25,000 poor womenpoor women

Comprising each SCC with average 500 Comprising each SCC with average 500 membersmembers

Activities foreseen in the extended phase of the project

New product with market researchNew product with market research

Expansion of geographical coverageExpansion of geographical coverage

Advance level of TA/training and exposure visitsAdvance level of TA/training and exposure visits

Enhance networking and linkagesEnhance networking and linkages

Micro insuranceMicro insurance

BDS (Business Development Service) linkagesBDS (Business Development Service) linkages

Study on Social Impact of the project Study on Social Impact of the project

Documentation and dissemination of experiencesDocumentation and dissemination of experiences

Project activities