Women farmers in Nepal will have access to vocational training and financial loans to improve business success.

Develop Women Savings & Credit Cooperative, Nepal

Updates from the Field:

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Index of Updates from the Field

March 2008 Update

By Katherine Zavala - Program Coordinator, IDEX, March 06, 2008 05:55 PM

In January 2008 Yael Falicov, IDEX’s Director of Programs, visited three savings and credit cooperatives affiliated with WACN in rural Nepal.

To date, WACN has helped developed 35 cooperatives with over $2.5 million dollars of capital in circulation. WACN works with each cooperative for five years. In the first two years, WACN staff helps women start their own savings and credit groups in each village, brings them together and gets them legally registered as a cooperative. For the next three years, WACN staff provides follow-up support as needed, and typically by the sixth year the cooperative is functioning completely independently, without any need for outside funds.

Each cooperative has approximately 200 members and includes groups in 9 communities. The local women administer the cooperative themselves, and provide training to the members on financial literacy and income-generating skills. Each member has a savings account that accumulates with 10% interest, and can be withdrawn after a certain number of years. They also qualify to receive one-year loans that are used for agriculture, livestock, opening small stores, building fishponds and other income-generating activities.

A typical example is Sabitri Timilsina, a middle-aged woman who doesn't have enough land to grow food. She eventually built up enough loan capital to buy 4 buffalo, and now sells 80 pints of buffalo milk per day. She makes even more money selling the manure, and has enough left over to run her own mini-biogas plant. This innovation, built with training and technical support from WACN, converts the methane from the manure into fuel, which is piped into her home to power a gas burner.

The structure of the cooperative empowers women financially, but also allows them to come together around many other issues. One cooperative in Kavre grew so powerful that the leaders took over the local 'forest users group' - the committee of locals who work with the government to manage the forest. When a group of wealthy landowners appropriated the forest for their own use, the women rose up in protest. The leaders of the cooperative were arrested, but they convinced the police of their cause and were immediately released, at which point they marched to the local government office to protest. They filed two lawsuits and eventually prevailed, saving the forest from destruction.

December 2007 Update

By Katherine Zavala - Coordinator of Programs, December 13, 2007 06:28 PM

Training on Incense Production
Incense production is an attractive income-generating activity for women because they can produce it inside their homes, and they can profit from the production with a relatively modest investment of labor. This year, WACN provided a five-day training on business planning to enable cooperative members to prepare a business plan to establish a microenterprise producing incense sticks for sale in local communities.

Twenty-one women participated in this workshop, facilitated by staff members from the Business Development Resource Center, Nepal.
�   Areas of training included:
�   How to identify the local target market
�   How to deliver this product to local communities
�   How to provide good service quality to customers
�   How to manage a well-run microenterprise
�   Risks involved in managing a microenterprise

During the training participants were divided into three groups in which they created a business plan together to present to the other groups.

October 2007 Update

By Katherine Zavala - Programs Coordinator, October 11, 2007 08:27 PM

WACN has authorized microcredit loans to two cooperatives in the Makwanpur district, Nepal. After meetings and discussion with the women members of the Village Development Committees (VDCs) NRs.70,000 (US$1,030) was provided to Shree Nari Chetana Milijuli Saving and Credit Cooperative Ltd. of Hatia VDC and NRs.30,000 (US$440) was provided to Nari Chetana Agarbatti Cooperative Ltd. of Chucchakhola VDC.

The fund is being mobilized as loans to its members for a variety of income generation activities. Most of the loan is disbursed for the following income-generating projects:
�   Goat raising
�   Buffalo raising
�   Agricultural activities
�   Incense making
�   Small petty goods

The increased income will allow the women to improve the nutrition and health of their families.

June 2007 Update

By Katherine Zavala - Asia Program Director, IDEX, June 20, 2007 04:44 PM

The informal women’s group of Hatia Village Development Committee (VDC) has been registered as “Nari Chetana Milijuli Saving and Credit Cooperative Ltd.” at the District Cooperative Office in Makwanpur district of Nepal. At present, 92 women are shareholders of the cooperative. The informal savings groups of women have now been legalized and are now established as a local legal entity.

After registration, the cooperative was provided with materials (stationary) support as required to maintain proper and transparent accounting system of the cooperative.

May 2007 Update

By Katherine Zavala - Asia Program Director, IDEX, May 18, 2007 01:30 PM

WACN has facilitated a three-day training on Saving and Credit Mobilization that was held at the training hall of the Community Forest Hall Building from 28th -30th Chaitra 2063 (11th -13th April 2007) for the first group and from 1st -3rd Baishak 2064 (14th -16th April 2007) for the second group. All together 64 participants participated in both trainings.

The main objective of this training was to impart knowledge about the groups’ concepts and to develop the habit of savings for effective mobilization. In the training participants were taught about the advantages of group savings and the value of team-work. They also discussed topics such as types of saving, saving mobilization, process of group formation, loan disbursement and repayment method, roles and responsibility of management body etc. This training helped the participants to conduct group meetings and to collect savings in the cooperatives office.

December 2006 Progress Report

By Katherine Zavala - Asia Program Director, IDEX, December 22, 2006 09:39 AM

WACN, Makwanpur District of Nepal

Background
This project is being implemented in Chucchakhola VDC, Hatuda municipality by Women Awareness Center Nepal (WACN) since 2004. The aim is to strengthen the cooperative, increase management capacity of the members, and ultimately improve the economic position of the shareholders.

The Shree Nari Chetna Agarbatti Utpadak Cooperative Limited consists of 176 shareholders who, in addition to partaking in coop management, have participated in income generation activities (incense stick production, embroidery, food processing) and sustainable agriculture practices. The members have $2,505 in savings in total. From those funds, $4,400 in loans has been issued so far to more than 40 members. The loan is used for agriculture purposes, livestock purchases, small trade, and emergencies.

Activities conducted by WACN
1.   Institution building
2.   Training on incense production
3.   Creation of a revolving credit fund
4.   Training on sustainable agriculture

A) Cooperative Growth and Finances

Institutional Growth
WACN’s experience with women's cooperative in other parts of the country has shown that women, once trained, can employ their new skills in running the cooperatives efficiently and effectively, and that they will attract more women. More members translates into greater savings and loans.

Year 4 corresponds to anticipated growth in membership for the period May 2006 � April 2007.

Priorities of coop membership
�   Improve operating mechanisms for organized, effective management
�   Make a good name for the coop and earn goodwill of the people
�   Provide training focused on the skills and human resource development since most women are from rural areas and not highly educated

Revolving Fund
Women are interested in running income-generating activities individually or in groups so that they become financially independent. Priority is given to proposals for loans that are directly or indirectly related to agriculture or livestock rearing (goat and buffalo raising). Apart from incense production, vegetable growing/selling, sewing and knitting are other income generating activities that women indicate interest in starting.

Cumulative since 4/29/04
Cooperative registration date - 29 April 2004
Savings rate per member, per month - $0.68 to $1.25
Interest on savings - 10%
Interest on loan - 15%
Number of shareholders - 176 (36 new members in one year)
Total credit received from outside sources (IDEX)- $690
Women who received loan   - 40
Total share amount - $425
Savings collected - $2,505
Child savings - $100
Total loan disbursement to date   $4,442
# Of members who have withdrawn their savings - 17 members

B) Income-Generating Training
Agriculture
Training was provided on sustainable soil management to control the use of harmful pesticides and chemical fertilizers and encourage women to adopt sustainable soil management. Areas of training:
�   Farm yard manure
�   Composting
�   Agro-forestry � grasses control erosion/ for cattle)
�   Organic pesticide (cattle urine, herbs)
�   Vegetable production, legume production

Training on incense production
Nepalese are generally very religious and it is customary among Hindus to starts their day by worshiping and praying to gods using incense. As such, there is considerable demand for incense. Incense production is an attractive income-generating activity for women because they can produce it inside their homes and they can profit from the production with relatively modest investment of labor.
�   22 women from this cooperative are running the incense production activity.
�   The executive committee purchases raw material and distribute to members who make the sticks at home.
�   Almost all the incense is locally consumed.
�   The cost of production per Kg is $2.75 and the selling price is $5/Kg. The required raw material is locally available (local herbs), but the perfume oil has to be purchased from Katmandu or the nearest city.
�   No outside workers or middlemen are involved in the whole process.

WACN Update April 2006

By Balu Iyer - Asia Program Director, IDEX, April 07, 2006 10:56 AM

Activities carried out

Training on capacity-building

Cooperative Education Training:
3-day cooperative management training for 30 women. The issues addressed were rules and services associated with participation, cooperative concepts and principles, savings mobilization, and credit management.

Bookkeeping:
The training was organized for leaders of the cooperative to members maintain transparent and accurate accounting systems. The training was very practical and dealt with the importance of accounting, record keeping and procedures

Savings mobilization and credit training:
The topics covered were types of saving, saving mobilization, process of group formation, loan disbursement and repayment method, roles and responsibilities of management body etc. 58 women attended the training.

Income generating activities

One of the focus activities of the cooperative is incense production, which requires small amounts of capital. The cost of production per Kg is $2.6 and the selling price is $5.3 per Kg. The raw material is locally available (local herbs) and only perfume oil has to be purchased from Kathmandu or the nearest city. No outside workers or middlemen are involved in the process allowing the women to maximize their profits.

Cooperative members have taken loans for income generating activities such as incense production, chicken rearing, tailoring, and vegetable cultivation. Many of them earned measurable increases in income and promptly repaid the loans.

The cooperative has started a child saving program to help families save for their children's education.

Some members of the cooperative have taken loans for farming and horticulture using the sustainable practices taught by WACN.

Attachments:

WACN Complete Update April 2006