Outcome NPL_D_1.1

By 2027, more people, especially women, youth, the most marginalized and poor, increasingly benefit from and contribute to inclusive, resilient, and sustainable socio-economic transformation at federal, provincial, and local levels (UNSDCF Outcome 1)

Significant progress has been made towards this outcome. Women from excluded groups in four provinces achieved measurable gains in economic security, decision making power and visibility as economic actors, while also influencing market system, social norms and policy environments. They have expanded income opportunities, entered the formal economy, accessed local resources and strengthened their roles in household and community decisions, directly contributing to Nepal’s ambition to graduate from least developed country Status by 2026. In 2025, an additional 2,106 women from excluded groups, particularly in rural areas, started or expanded income-generating opportunities, entering more formalized economic activities across climate-resilient agriculture and non-farm sectors including crafts and tourism. Women reported monthly income increases ranging from NPR 5,000–75,000 (USD 42 – 564), with some collective enterprises generating seasonal revenues exceeding NPR 300,000 (USD 2,500). A woman from Dhangadhi shared that her monthly income doubled to NPR 16,000 (USD 110) after receiving training, raw materials, and business and market linkages support. These economic gains shifted household power dynamics: rural women reported greater control over income, higher savings through cooperatives, and stronger roles in household decisions. Many also described improved recognition and respect within their families. Engagements with men, religious leaders, family and community members and political representatives led to positive shifts in attitudes and practices, fostering male support for women’s economic roles, shared care responsibilities and improved access to family resources. At the collective and community level, women strengthened their voice and agency through group formation, networking platforms, and market-system dialogues. Informal businesses, women’s groups and cooperatives moved from invisibility to recognition and formalization, engaging directly with market actors, cooperatives, financial institutions, and local governments for resources and services. Women’s groups and cooperative formalized buyer seller relationships, improved access to financial services and raised priority issues-including care responsibilities and climate risks- contributing to more gender responsive market practices and local government support. At the institutional level, the endorsement of the Medium, Small and Micro Enterprise (MSME) Policy marked a critical milestone in embedding women’s entrepreneurship, labour rights, and inclusion within Nepal’s economic policy framework. Engagement with financial institutions expanded women’s access to credit, with 111 women securing loans through cooperatives and banks. Collaboration with NMB Bank led to tailored financial and business literacy training for women in Sudurpaschim and Karnali, improving access to formal finance. At the local level, 32 governments in Madhesh, Karnali, and Sudurpaschim endorsed GESI Comprehensive Implementation Plans (CIPs) and allocated USD 52,600 in directly gender responsive programmes using Gender Responsive Budgeting (GRB) tools. UN Women played a catalytic role in achieving this outcome through a systems-based approach to women’s economic empowerment. With funding from the Government of Finland, the European Union and Mult-Partner Trust Fund (Sweden and Norway), it delivered tailored support, including skills training, seed funding, coaching, access to finance, and market linkages across interventions including two key joint programmes – Empowered Women and Prosperous Nepal; and Rural Women’s Economic Empowerment. Simultaneously, it influenced national systems through policy engagement, capacity building, and technical support, including advocacy for endorsing the MSME Policy to institutionalize gender-responsive frameworks. At the local level, it supported governments to implement GESI CIPs and apply GRB tools. UN Women also engaged banks and fintech companies through the Women’s Empowerment Principles, fostering inclusive markets and expanding women’s access to formal financial services. These results affirm the original Theory of Change: strengthening rights holders’ capacities alongside institutional shifts and inclusive mechanisms leads to sustainable socio-economic transformation. If sustained, these gains will support gender-responsive and disaster and climate resilient economic systems, for women, youth, and marginalized groups.

By 2027, more people, especially women, youth, the most marginalized and poor, increasingly benefit from and contribute to inclusive, resilient, and sustainable socio-economic transformation at federal, provincial, and local levels (UNSDCF Outcome 1)

Some progress was made towards this outcome. Women from vulnerable and excluded groups have expanded income opportunities, integrated in the formal economy, secured local governments resources and increased their decision-making roles in families and communities. -In 2024, additional 706 people from excluded groups (701 women, 3 men and 2 non-binary), started and/or expanded their micro-scale business and increased income generation opportunities. These women are now engaged in diverse income generating opportunities in the climate resilient agriculture and livestock value chain, food processing, small scale garment, handicraft and off-farm businesses. With their newfound income, women are demonstrating their confidence and financial independence in household decision-making as well as in community level participation. As shown by the testimonials from the field, they were able to expand their income significantly. Ms. Pradipta Bhujel, a member of Nashika Self-Help Group (SHG) in Banepa-13, reported that she was able to earn approximately NPR 40,000 through her floriculture and vegetable business. In addition, a total of three women led collective businesses have been established in three municipalities, enabling 51 women members from the community to earn income. With collectivization and social networks, they have been able to tap more opportunities in business scaling as well as for personal growth, such as leadership, social networking. In addition, 56 women including those from vulnerable background (including those from marginalized ethnic groups and women with disabilities) are now using digital banking services in support of running their businesses. Women’s economic empowerment has been further enabled by the private sector, with 39 companies internalizing Women Empowerment Principles (WEPs) and committing towards gender equitable workplace and marketplace. This is further accompanied by mainstreaming unpaid care work in 16th National Plan for the first time, creating policy space to expand care services. Further, gender responsive budgeting (GRB) has been institutionalized by the 23 local level governments enabling women’s access to local government resources. These governments are now allocating targeted resources for women’s economic empowerment. For example, Laxmipur Patari municipality provided public land to women farmer’s group to set up collection centre. Birgunj municipality distributed sewing machine and other logistics to set up small scale garment production centre for women training graduates supported by UN Women. Narayan municipality from Dailekh district allocated NPR 450,000 (USD 3,250) for the vegetable farmer’s producers. These are few examples on how UN Women interventions supported unlocking local government resources and increased women’s access to productive resources. The robust mix of interventions focused on economic empowerment enhanced the income opportunities for women from excluded groups. UN Women provided technical, financial and coordination support to its programme partners namely Women Human Rights Nepal, Didi Bahini, Community Action Center Nepal and Justice and Rights Institute Nepal, to implement interventions focused on market-oriented skill training, business development support, seed fund and equipment support for business startup and market linkage coupled by family and community dialogue and developing soft skills, such as negotiation and leadership to address the barriers they face based on the deeply rooted social norms. These interventions were completed with financial contribution from the Government of Finland, European Union and Multi-Partner Trust Fund (Sweden and Norway). Based on the progress made, the original strategy and theory of change for this outcome is largely still applicable and hence, it remains unchanged. If as expected this strategy is successful, then by 2027, more than 3,400 women including those from marginalized groups will increase their income and contribute to inclusive, resilient, and sustainable socio-economic transformation in Nepal.

By 2027, more people, especially women, youth, the most marginalized and poor, increasingly benefit from and contribute to inclusive, resilient, and sustainable socio-economic transformation at federal, provincial, and local levels (UNSDCF Outcome 1)

There has been notable progress on this outcome in the first year of SN 2023-27 implementation. Firstly, a total of 300 women led Micro, Small and Medium Enterprises (MSMEs) have started digital financial transactions benefitting their business to transact digitally. This has helped them to access digital financial services to expand their business. In addition, Merchant Management System, the digital payment system of Nepal Clearing House Limited has been engendered by introducing gender field in the system and making it mandatory for the banking institutions to enter gender details while passing information of merchants. To this end, UN Women provided with technical and financial support in partnership with UNCDF. This is strategic interventions to capture gender information of MSMEs using digital payment system and inform the larger policy instruments to close gender digital divide. Secondly, the agenda of gender equality and women’s empowerment (GEWE) and the invisibility and barriers of unpaid care and domestic work has been captured in the guidance note of the 16 th National Periodic Plan as a result of UN Women’s ongoing advocacy and assessment of barriers of women to the economic transformation. It was also supplemented by the memorandum of women led MSMEs submitted to the government capturing the voices and representation of women from all provinces demanding the solutions and recommendations to women led business. This was facilitated by Federation of Women Entrepreneurs Association of Nepal with technical and financial support from UN Women. Thirdly, private sectors have started advocating for and promoting GEWE agenda in Nepal. In 2023, nine companies have applied for the Women’s Economic Empowerment Principles (WEPs) signatories established by UN Women. Among them, three have been approved and published in WEPS portal. This was facilitated by UN Women engaging key private sector actors including the Global Compact Nepal, Stock Exchange Nepal and International Finance Corporation to promote gender equality through Ring the Bell event 2023 on the theme “DigitAll: Innovation and Technology for Gender Equality”.