Transforming Local Communities into Enterprises for Economic Security in Nepal (Final Narrative Report)

Author: ANSAB
Publisher: ANSAB
Language: English
Date of Publication: July 2010
Number of Pages: 59
Price: Free
This Final Narrative Report presents the lessons learned, major activities, achievements, indicators of success as well as organizational and management challenges of the 3-year project “Transforming Local Communities into Enterprises for Economic Security in Nepal” funded by the Ford Foundation. ANSAB (Asia Network for Sustainable Agriculture and Bioresources), in partnership with local communities and 8 district based NGOs, implemented the project in nine districts of Nepal Himalaya (see Annex 2 and 3). Community enterprises were developed in several promising value chains, including lokta (Daphne spp.), yarshagumba (Cordyceps sinensis), wintergreen (Gaultheria fragrantissimia), bio-briquette, soap-nut (Sapindus mukorossi), allo (Girardinia diversifolia), and timber. A total of 31 field staff and 6 central office staff were involved.
The target project clients are now organized into 917 economic entities and 166 CFUGs (see Annex 4, 5, 6, 7 for details). Special attention was paid to disadvantaged groups (DAG)  through the creation of Community Forest User Group (CFUG) subgroups and micro-enterprises for the sustainable collection, cultivation, primary processing and collective marketing of natural products. These entities were then linked with community enterprises owned and managed jointly by CFUGs and individual entrepreneurs for value-added processing. These community enterprises were in turn linked with larger national enterprises, which consolidate, manufacture and market the end products with quality assurances and certifications (organic, FSC, wildlife friendly).
The cash expenditure of the project reached US $866,306, of which US $400,000 was received from the Foundation, US $205,253 was leveraged from the communities themselves, and the remaining US $261,053 was leveraged from 20 other organizations for specific activities (see Annex 8 for details). The enterprises developed have already generated a return on investment (ROI) of 189% within the project period, with targeted communities earning a total additional income of US $1,640,866 and setting aside US $225,315 in community funds for continuous investment in enterprise activities. This ratio is poised to increase over the years as enterprises continue to generate income from the initial investment.