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)

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 (701 women, 3 men and 2 non-binary) women and people from excluded groups, 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 three women led collective business 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 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 form 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”.