NAMDP - Nepal Agricultural Markets Development Program


This market systems development project seeks to stimulate job creation and increase income, including for women and disadvantaged groups, through a successful transformation of agricultural markets in Province 1 of Nepal. Leveraging Swiss expertise in market systems and geographical focus in the province, it will align with the provincial government’s priorities and strengthen its potential to effectively regulate, nurture and stimulate markets’ productivity and competitiveness.

Country/region Topic Period Budget
Nepal
Employment & economic development
Business support & economic inclusion
Tradepolicy & market system
SME development
01.07.2020 - 30.11.2024
CHF  9’540’000
Background Demand for agricultural products has been increasing in Nepal due to a growing population and rapid urbanisation, but domestic supply has not risen at the same pace and has been unable to compete with lower-priced imported agro-products. Though growth in the traditional agriculture sub-sectors remains flat, two thirds of the population are still engaged in agriculture, according to the International Labour Organization. Subsistence farming prevails and does not suffice to uplift the economic status of the Nepalese people. The estimated poverty headcount ratio at USD 3.20 per person per day was 41% of the population in 2018, with a large proportion of the poor living in rural areas, according to the World Bank. With 500’000 youths entering the labour market every year, many are forced to migrate overseas to respond to the scarcity of productive jobs in Nepal. The lack of productive jobs also reinforces existing gender differences in employment patterns, with most of the women working as part of informal arrangements and being insufficiently recognised for their labour. The country has yet to launch a transformation of its agriculture sector to be more competitive and absorb the growing workforce, in an inclusive way. This will require shifting investment, labour and other productive resources from lower to higher productivity activities, with a focus on value-addition and processing of high quality products, to realise the productivity potential of the many men and women left behind. 
Objectives Women and men, including from disadvantaged groups, find employment and increase income.
Target groups This phase aims to primarily benefit women and men, including from disadvantaged groups, through employment creation and increased income in Province 1.  Women represent 40% of the people who will benefit from new employment opportunities and 30% of the farmers who will increase their incomes. Disadvantaged groups (DAGs) represent 20% of the people who will find employment and 25% of the farmers who will benefit from increased incomes. As defined by SDC Nepal, DAGs represent parts of the population that are(i) socially discriminated/ excluded due to caste/ethnicity/ gender/ religion/ location, and also (ii) economically poor. 
Medium-term outcomes

Outcome 1:    Agribusinesses, particularly Small & Medium Enterprises, increase trade value of agricultural produce in key value chains

Outcome 2:    Agriculture and Non-Agriculture Service Providers offer innovative products and services

Outcome 3:    Sub-national and national governments provide a more enabling environment for businesses growth (especially SMEs), in particular in agriculture

Results

Expected results:  

Output 1.1:    Agribusinesses, particularly SMEs, have the opportunity to improve product quality and expand their networks

Output 1.2:    Water User Associations, farmer cooperatives and associations have the capacity and opportunity to improve product quality and expand their networks

Output 2.1:    Agricultural Service Providers have the capacity to deliver innovative products/services

Output 2.2:    Non-Agricultural Service Providers have the capacity to deliver innovative products/services

Output 3.1:    Province 1 and Federal government are able to address policy bottlenecks, to support Agriculture Commercialisation

Output 3.2:    Province 1 and Local governments have the capacity to collaborate more effectively with the private sector & other actors


Results from previous phases:  

-    35,000 farmers managed to participate in commodity markets and 13’000 farming households benefitted from increase annual nominal income on an average of NPR 10,000 (CHF 100). Out of these out of which 44% were women led production units and 45% Disadvantaged Groups households;

-    750 jobs (Full-time Equivalent) were created on-farm and in the value chains. This result is expected to spill-over with 1200 new jobs created by the end of 2020; 

-    Out of 37 investments made by the project to address market failures, the private sector co-invested 57% and 30 partners scaled up initial pilot interventions, using their own funds; 

-    The first phase successfully managed to unleash some of the productivity constraints for farmers, resulting in increased income. However, it did not achieve to catalyse change in the wider market systems.


Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Private sector
Swiss Non-profit Organisation
  • Foreign private sector North
  • Swisscontact


Other partners
Swisscontact in consortium with the Centre for Environmental and Agricultural Policy Research, Extension and Development (CEAPRED) is the international Technical Assistance service provider which has been mandated for the first phase through a competitive tender process. Swisscontact in consortium with CEAPRED will continue the implementation of the mandate for the second phase of the project.
Coordination with other projects and actors

Synergies with Swiss projects mainly, Small Irrigation Project (SIP) and the State Support Programme (SSP).

Coordination with major donors’ projects, especially the World Bank, ADB and DFID.

Budget Current phase Swiss budget CHF    9’540’000 Swiss disbursement to date CHF    5’167’000
Project phases Phase 2 01.07.2020 - 30.11.2024   (Current phase) Phase 1 01.01.2014 - 30.11.2020   (Completed)