Dang

September 17, 2015

District Overview

Dang is one of the districts within Bheri Zone and lies in Province 5 of Nepal. The district, with an area of 2,955 sq.km, is divided into 39 VDCs and 2 Municipalities. It has 116,347 households with a total population of 553,048 (Male 261,524 & Female 291,524). Literacy Rate in the district is 58% (women’s literacy rate is 47%).[1]

The district is well served by road network. Dang is the gateway to various hilly districts of the region such as Salyan, Rukum, Rolpa etc. Due to its strategic location, the district can be considered as sub-regional hub.

Economic & Financial Landscape

Agriculture (including livestock and poultry), manufacturing (including cement production), food processing industries and trading are the main economic activities of the district. Paddy, wheat, lentil, oilseeds, vegetables and potatoes are the main agricultural products of the district. The district also has many food processing industries. Its rich forestry resources, around 65% of the area is covered by forest, also provides potential for herb collection and processing.

The district is served by 58 different branches of ‘A’ Class Commercial Banks, 40 different branches of ‘B’ Class Development Banks, and four different branches of ‘C’ Class Finance Companies. The population served per branch is 6,047 against the national average of 8,960[2]. This indicates the need to further expand the outreach of financial services and facilities to the unbanked population of the area.

Agriculture is the main income source of majority of households (around 79%). If we analyse the use of credit products in Agriculture, only around 15% had agriculture credit out of which major sources of credit were relatives (27%), followed by FIs (21%) and women’s groups (16%)[3].

Despite the presence of large number of FIs in the district, informal sector still are the dominant suppliers of the credit. This may be one of the limiting factors for the large scale commercialisation of agriculture sector. AFP Programme will work closely with FIs to increase the range of suitable financial products as well as to streamline process which will facilitate use of agriculture credit.

GESI Issues

Women suffer from gender based discrimination in education, nutrition, social and cultural norms. Women are less likely to be involved in economic activities outside home and are marginalised in major decision making. Caste based discrimination is still prevalent in district. The district also has a number of vulnerable groups such as Tharu and Badi.

A key aim of the AFP programme is to improve access to financial services and encourage formal participation in the economic sector for women and deprived segment of the districts. The AFP programme will use the GESI lens throughout the project cycle for addressing these issues.

Sakchyam’s Ongoing Interventions

Value Chain Financing Innovations

  • Wholesale Loan to Dairy Cooperatives, in the Dairy Value Chain has been launched in partnership with NMB Bank.
  • Laxmi Bank have also introduced Sakchyam Udhyami Karja, Micro Mortgage, E-Rickshaw, and Livestock Loan in the district.
  • MBL ran a pilot targeting four cooperatives under Heifer International to provide loans directly to women run enterprises involved in ‘Goat’& ‘Dairy’ VC. MBL is now scaling up this activity with Sakchyam’s support.

Delivery Channel Innovations

  • The programme has been able to reach the unbanked population of the district by establishing BLB Touch Points in partnership with Mega Bank (four BLBs), Bank of Kathmandu (one BLB), Janata Bank (eight BLBs) and Everest Bank (three BLBs).
  • So far, NUBL has introduced the use of tablets in their branches in the district.
  • Chhimek has introduced 40 tablets in the district. Similarly, Nirdhan Uthhan has introduced 10 tablets.

Outreach Expansion

  • New branches of FIs have opened to increase financial access for rural poor via partnerships with Bank of Kathmandu (one branch), NWCSC (three branches), Vijaya Laghubitta Bittiya Sanstha (VLBS) (two branches), NEFSCUN(one branch), and NIC Asia (one branch).

Financial Literacy Initiatives

  • Various programmes on Financial Literacy are being introduced through conventional channels as well as alternate delivery channels such as tablets and mobile phones. These programmes have been launched in partnership with NUBL, VLBS and RMDC.
  • NUBL is conducting tablet-based financial literacy campaigns in the district.
  • RMDC is conducting financial literacy campaigns through various activities such as school level interactions, message dissemination through mass media, through PGT and Centre Meeting Modules.
  • VLBS and NWCSC are conducting financial literacy campaigns through PGT, IVR, Centre Meeting Modules, and Mass Media.
  • Chhimek is conducting financial literacy campaigns through PGT, Centre Meeting Modules and videos.
  • Janautthan has been using flip chart, videos and financial literacy manuals for carrying out different financial Literacy activities.

Product Development

  • Migration Loan Product has been designed and implemented in the district in partnership with NWCSC. This product has now been replicated and launched in 22 other branches of NWCSC.
  • Janautthan has piloted ‘Energy Loan’ at Lalmatiya and now launched in other branches in Dang

Other Support

The programme is supporting Laxmi Bank, Machhapuchhre Bank and Sanima Bank to deploy Dedicated Assistant Relationship Managers (ARMs) to increase financial services to the rural poor.

[1] National Population Census (2011) [2] Nepal Rastra Bank (July 2018) [3] National Sample Census of Agriculture (2011-2012)