Interventions

What is Sakchyam Challenge Fund?

 Funded by UK aid from the British Government, the Sakchyam Challenge Fund for Sakchyam Access to Finance Programme is built upon DFID’s belief that the lasting removal of poverty requires the birth and growth of profitable businesses – it is these that offer people the chance of financial independence and well-being – through job creation and financial security. DFID also believes that the creation and growth of profitable businesses requires effective financial services.

Sakchyam Challenge Fund (SCF) works with private sector organisations wanting to invest in commercial financial services in emerging markets in the Programme’s target districts. Specifically, SCF aims to improve the access of poor and middle income groups (including Micro, Small and Medium Enterprises (MSMEs)) to services such as credit, savings, leasing, insurance, and investment capital. SCF offers vital assistance to organisations seeking to capitalise on exciting financial services business opportunities now emerging in target districts of the Far Western and Mid-West Regions of Nepal.

WHAT IS A CHALLENGE FUND

A Challenge Fund issues a challenge to the private sector and other players to come-up with innovative and new products and services aimed at poor people and communities. A Challenge Fund can help develop effective partnerships between the private sectors and civil society with public sector approval. By establishing a pot of money governed by specific objectives, it is possible to encourage increased and profitable private sector activity in chosen areas. In this way the public sector gains from the substantial and additional private sector funding channelled into its programmes. At the same time, the private sector may gain because the risk sharing taken on by the Fund makes neglected projects viable and/or profitable.

For more information on the Sakchyam Challenge Fund, please contact: info@sakchyam.com.np