Kailali is one of the five districts within Seti Zone and lies in the Far Western Development Region of Nepal. Dhangadi is the district headquarters. The district, with an area of 3,235 sq.km, is divided into 43 VDCs and 2 Municipalities. It has 142,413 households with a total population of 775,709 (Male 378,417 & Female 397,292). Literacy Rate in the district is 66% (women’s literacy rate is 57%).
The district is well served by road network. Kailali is the gateway to various hilly districts of the region such as Dadeldhura, Baitadi, Accham, etc. Due to its strategic location, the district can be considered as regional hub.
Agriculture (including livestock and poultry), food processing industries, service industries such as transportation, hotels and trading are the main economic activities of the district. Paddy, wheat, vegetables, fruits and potatoes are the main agricultural products of the district. As Kailali district and the surrounding areas are considered rice basket of the region, the district has many large and well known food processing industries in the area. Its rich forestry resources, around 64% of the area is covered by forest, also provides potential for herb collection and processing.
The district is served by 60 different branches of ‘A’ Class Commercial Banks, thirteen different branches of ‘B’ Class Development Banks and two different branches of ‘C’ Class Finance Companies. The population served per branch is 11,610 against the national average of 8,960 . This indicates the need to further expand the outreach of financial services and facilities to the unbanked population of the area.
Agriculture is one of the top activities as stated by households. If we analyse the use of credit products in Agriculture, only around 22% had agriculture credit out of which major sources of credit were relatives (33%), followed by women’s group (23%) and farmer’s groups (4%). 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.
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, Raji 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.
Value Chain Financing Innovations
Delivery Channel Innovations
Financial Literacy Initiatives