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Nepal

18

Projects Includes planned, ongoing and closed projects

US$ 851.7 million

Total Project Cost

US$ 353.84 million

Total IFAD financing

987,603

Households impacted


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The Context

Nepal is a landlocked country with a rich diversity of ethnicities and cultures. The country’s topography and ecology are highly varied, ranging from fertile plains in the south to mountains in the north. Nepal’s landmass falls under three ecological zones – the Terai (plains), the hills and the mountains.

Agriculture is central to the national economy. Nearly 80 per cent of households (3.4 million) and 66 per cent of the national labour force depend principally on the sector for their livelihoods. But urban-rural disparities are high, and over 80 per cent of Nepal’s poor people live in rural areas. 

GDP in Nepal has grown more slowly than in any other country in South Asia– 5.4 per cent in 2014, with an annual average of 4.43 per cent between 2006 and 2014. As of 2014 the country had the lowest per capita GDP in South Asia (US$426 in constant 2005 US dollars), and the highest level of poverty, 25.2 per cent of the population, based on the international poverty line of US$1.25 per day. This is unchanged from the 2011 poverty rate.   

The country’s agriculture sector is a mix of crop and livestock farming. Although more than 70 per cent of the workforce is involved in agriculture, the sector generates only around one third of the country’s GDP. 

Nepal has strong potential for development. Its agricultural biodiversity means it can produce a wide range of crops (cereals, pulses, oilseed crops, fruits, vegetables and other cash crops) at different locations throughout the country.

More than half of all Nepalese households have a family member who has migrated for work. An estimated 2 million people are working abroad (the majority men), and their remittances make up 20 per cent of GDP. The women left behind are taking on increasing responsibility for both household and farm management.

The Strategy

Nepal was one of the first countries to benefit from IFAD loans, beginning in 1978. 

IFAD's strategy in Nepal, based on its country strategic opportunities programme for 2013-2018, supports the development policies and programmes of the government and other partners. This is especially the case relative to peacebuilding, reconciliation, reconstruction and economic recovery following a 10-year civil war that broke out in 1996. 

IFAD's investments reinforce these efforts by addressing poverty, inequality and social marginalization, which have been at the heart of conflict in the country.

In particular, we focus our investments on the hill and mountain areas, where poverty levels are high and access to infrastructure, services and markets is extremely limited. 

Key activities include:

  • providing rural infrastructure and services;
  • targeting the most marginalized ethnic and social groups;
  • improving income-generating opportunities for poor rural households;
  • supporting good governance and peace-building;
  • promoting community cohesion and resilience.

Country Facts

More than 80 per cent of Nepal’s people live in rural areas and depend on subsistence farming for their livelihoods.

Although more than 70 per cent of the country’s workforce is involved in agriculture, the sector generates only around one third of GDP.

Since 1978, IFAD has invested US$261.8 million to finance 16 projects and programmes related to agricultural development in Nepal, benefiting 797,353 households.


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Country documents

COSOP 2013

Type: Country Strategic Opportunities Programme

Projects and Programmes

PLANNED Under design after concept note approval

APPROVED Approved by the Executive Board or IFAD President

SIGNED Financing agreements signed

ONGOING Under implementation

CLOSED Completed/closed projects

No matching projects were found
No matching projects were found

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Related news

Productivity and incomes of small-scale farmers increased through IFAD and Nepal partnership – new report.

December 2019 - NEWS

Rural development projects financed and supported by IFAD have contributed to increased agricultural productivity and incomes of smallholder farmers in Nepal, according to a new report presented today.

IFAD and Nepal to review progress in reducing rural poverty

December 2019 - NEWS
The Independent Office of Evaluation of IFAD and the Government of Nepal are holding a one-day workshop to share the findings of an independent evaluation of IFAD’s operations in Nepal over the last seven years (2013-2019).

IFAD and Nepal invest US$68.1 million to improve incomes and food and nutrition security for rural smallholders

June 2018 - NEWS
IFAD and Nepal have signed a financing agreement to significantly improve incomes and food and nutrition security for 35,000 rural farming households in 10 districts in State 6.

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Related stories

Recipes for Change: Dhindo – corn flour purée with nettle leaf curry and pickled tomatoes – Nepal

March 2020 - STORY
Climate change is contributing to increasing temperatures and droughts in Nepal, where corn and tomatoes are a staple food.

Mobilizing inclusive remittances for rural development

November 2019 - STORY
It has long been recognized that the money remitted by migrants is used to supplement the receiving family’s income and is therefore largely spent on consumption. Only a small amount of remittances is invested in productive assets, much less saved.

Nepal’s ‘poorest of the poor’ reap the benefits of innovative leasehold project

October 2008 - STORY
In the Middle Hills district of Nepal, an IFAD-funded project has helped reverse environmental degradation and bring people out of poverty. As a result of the project’s impressive impact, the government adopted a leasehold forest policy in 2002 and integrated the approach in its poverty strategy. 

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Related publications

Investing in rural people in Nepal

December 2019

Nepal was one of the first countries to benefit from IFAD loans, beginning in 1978.

Impact assessment: High-Value Agriculture Project in Hill and Mountain Areas

December 2018
The High-Value Agriculture Project in Hill and Mountain Areas (HVAP) integrated farmers living in the remote hill and mountain areas of Mid-Western Nepal into the local economy of goats and high-valued crops such as apples and Sichuan pepper (timur). 

Grant Results Sheet - ICRISAT: Sustainable Management of Cropbased Production Systems for Raising Agricultural Productivity in Rainfed Asia

June 2018
The programme aimed to intensify the cropping systems with grain legumes to improve the productivity and sustainability of rainfed agriculture while diversifying smallholder farmers’ income-generating opportunities. 

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