Women-led Cooperatives Seek Investment for Production Expansion

Kathmandu. Representatives of women-led agricultural and multipurpose cooperatives explained about production while seeking 'investment' at a program in the capital today.

Saying 'Cooperatives will no longer be limited to just savings and loans', they expressed their desire to be involved in production. For this, they also urged investors to invest.

Women in leadership roles of cooperatives presented themselves strongly at the 'Seeds of Change' multi-stakeholder dialogue program organized in Lalitpur. On that occasion, managers and chairpersons of seven women's cooperatives presented their business plans to reputable banks, financial institutions, and exporters of Nepal and 'dealt' for investment partnerships worth approximately 125 million rupees.

Although established for small savings and mutual cooperation in rural areas of Nepal, the women's cooperatives are now campaigning to break the narrow scope of internal capital mobilization and connect with commercial production, they claimed.

The operators of rural women's cooperatives have now presented themselves in 'investment deals' that were previously considered to be done only by large business houses.

• What is the condition of cooperatives seeking investment?

These cooperatives appear to have significantly strengthened themselves financially in the past few years to be able to sit at the investment table with proposals. The financial condition of Samunnati Social Entrepreneur Women's Cooperative located in Keruniya, Lamahi-2, Dang, which came to Kathmandu seeking investment to increase production, is no less than that of a development bank.

This cooperative, with 810 members, has a balance sheet size exceeding 192 million rupees, with total deposits reaching 166.2 million rupees and loan investments reaching 133 million rupees.

Nilkamal Social Entrepreneur Women's Cooperative in Lamahi has 1458 members, with a balance sheet size of 81 million rupees and deposits of 49.5 million rupees.

Sakaladevi Social Entrepreneur Women's Cooperative in Nawalpur, Gandaki Province, has a balance sheet of 74.9 million rupees and total deposits of 37.1 million rupees, while Pratibha Social Entrepreneur Women's Cooperative in Machhapuchhre, Kaski, has a balance sheet of 59.9 million rupees and total deposits of 23 million rupees.

Similarly, Haripur Social Entrepreneur Women's Cooperative in Sarlahi, Madhesh Province, has a balance sheet of 71.9 million rupees and total deposits of 28 million rupees. Kamala Mai Social Entrepreneur Women's Cooperative in Sindhuli, Bagmati Province, has a balance sheet of 19.3 million rupees, and Galda Social Entrepreneur Women's Cooperative in Palpa has a balance sheet of 47.5 million rupees.

They presented their financial status and stated that rural women have built financial capacities worth millions, not just simple savings, and are now focusing on production.

• Claim of Transparency

These cooperatives have strongly argued to investors that they are fully eligible to receive investment due to their financial strength. According to the leaders of the cooperatives, the biggest basis for investing in them is the 100% women representation in the board of directors and complete transparent institutional governance.

These cooperatives regularly conduct external audits. According to them, the vast network of marginalized farmers associated with the cooperatives and their production capacity are eligible and sufficient bases for investment.

The cooperatives have not only asked for capital from investors but have also presented concrete plans to increase the production of exportable produce such as ginger, turmeric, beans, and Timur, as well as dairy products.

• Investors Positive

Dr. Maniratna Aryal, Information Officer at the Ministry of Agriculture, stated that the government is also ready to invest in cooperatives seeking to focus on production. He said that the government can provide such cooperatives with concessional loans and grants according to the procedures.

Apart from large banks and financial institutions, the exporting company 'AQUISTA NEPAL', which has been urging cooperatives to invest, has already made an advance purchase agreement worth 90 million rupees. Similarly, Heifer International Nepal has taken the responsibility of providing 'coaching' in technical support, business management, and monitoring to these cooperatives for the next one year.

Seven cooperatives had sought approximately 120 million rupees in investment from banks and commercial sectors, with varying amounts. Financial institutions appeared ready to 'deal' for the amount, stating that they are positive about the cooperatives' plans.

Although they stated their readiness to invest in the cooperatives, they did not disclose how much investment would be provided to which cooperative by which financial institution. 'Deals have been made based on documents and presentations. Now, after looking at the field, the cooperatives will receive investment,' said Pravin Gurung, a representative from Heifer International, who facilitated the program.

Global IME Bank, Sana Kisan Bikas Laghubitta Bittiya Sanstha, and RSDC Laghubitta Bittiya Sanstha, among others, showed interest in investing at the program.

'Commitments have been made to invest after studying the direct operational model,' Gurung said. Private sector commercial exporters and especially impact investors investing in agricultural enterprises have also shown interest.

According to Gurung, investing banks and financial institutions and the private sector will provide cooperatives with large-volume 'wholesale loans' and 'business promotion loans' directly. He stated that a tripartite agreement model will be adopted for investment security. Under this, the bank will provide loans to the cooperative. Farmers of the cooperative will produce, and the exporting company will directly purchase and settle the payment through the bank or cooperative's account.