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Capacity Building and Leadership Development in Nepal’s Cooperative Sector

Capacity building and leadership development are crucial pillars in driving sustainable progress across various sectors in Nepal, particularly in agriculture and livestock farming. In this context, the role of cooperatives, microfinance institutions, and national organizations like the Nepal Agriculture Cooperative Central Federation Ltd. (NACCFL) is indispensable.
NACCFL’s Vision for Capacity Building
NACCFL is at the forefront of Nepal's cooperative movement, with a strong commitment to fostering leadership and building institutional capacity. Through its extensive programs, NACCFL supports agriculture and livestock cooperatives, particularly empowering women and marginalized groups.
Its mission is anchored in equipping cooperative members—especially board members, directors, and employees-with the knowledge and tools necessary to manage and expand sustainable agricultural practices. By doing so, NACCFL contributes significantly to the national development goals, including poverty reduction and food security.


Training and Development Initiatives
The NACCFL Agriculture Training and Research Center offers a range of structured training programs tailored to the needs of cooperatives. These capacity-building activities are aligned with the organization’s long-term goal of promoting efficient governance, financial transparency, and entrepreneurial growth within the agriculture sector. Major training programs include:
1.    Bylaws Rewriting & Internal Procedures Development - This 3-day course helps cooperative boards and staff revise governance structures to ensure compliance and clarity in operations.

2.    Business Plan Development - Over another 3 days, leaders are trained in strategic business planning, essential for financial sustainability and project scalability.

3.    Strategic Planning and Proposal Writing – These are geared toward directors and employees, helping cooperatives plan for the future and secure funding.

4.    Cooperative Management Training for New Board Members – This is vital for orientation and institutional continuity.

5.    Motivational Leadership Training – Courses like “Positive Thinking for Cooperative Leadership Development” are designed to inspire and strengthen the resolve of cooperative leaders.

Through these initiatives, NACCFL ensures that the backbone of the agricultural sector- cooperatives functions effectively.


Women Empowerment through Cooperative Leadership
A key focus area for NACCFL is women empowerment. Women are central to agriculture and livestock farming in Nepal, yet they often lack access to leadership roles or financial resources. NACCFL directly addresses this imbalance by:
●    Offering leadership and governance training exclusively for women members.

●    Promoting female representation on boards and committees.

●    Encouraging the formation of women-led cooperatives.

This targeted capacity-building approach not only enhances gender equity but also improves overall cooperative performance. Empowered women bring diverse perspectives and responsible financial behavior, which contributes to the cooperative’s sustainability.


Agricultural Leadership for the Next Generation
Nepal’s youth often migrate for better opportunities, creating a leadership gap in rural areas. NACCFL and programs like the Agriculture Sector Development Programme (ASDP) actively work to reverse this trend by engaging youth in cooperatives. ASDP, backed by the Government of Nepal and IFAD, focuses on rural financial services, operating across 10 districts in Karnali Province.
NACCFL provides training, coaching, and mentoring to over 100 cooperatives, including youth and newly formed groups. These efforts aim to develop a skilled workforce that will continue to lead Nepal’s agricultural transformation.
Promoting Good Governance and Financial Accountability
Under the dynamic leadership of Mr. Khem Bahadur Pathak, Chairperson of NACCFL and SKBBL, the cooperative movement in Nepal is undergoing a positive transformation. His emphasis on good governance, transparency, and regulatory compliance is setting new standards for cooperatives.
Mr. Pathak’s leadership promotes:
●    Accountability among directors and staff.

●    Regular audits and monitoring.

●    A culture of knowledge-sharing and continuous improvement.

This holistic vision not only strengthens local agriculture cooperatives but also aligns them with national and global best practices.
Cooperative Development and Microfinance Integration
Microfinance is a critical component of cooperative development in Nepal. It provides rural farmers with access to credit, savings, and insurance services that are often unavailable through traditional banks. NACCFL facilitates microfinance access through capacity-building efforts that ensure cooperatives are:
●    Well-governed and transparent.

●    Capable of managing financial portfolios.

●    Skilled in credit disbursement and recovery.

Through ASDP and other national programs, performance indicators are established to measure improvements in outreach, savings mobilization, and loan delivery. This enhances the credibility and effectiveness of cooperatives as rural financial institutions.

Frequently Asked Questions (FAQs)
1. What is NACCFL, and how does it support agriculture in Nepal?
NACCFL (Nepal Agriculture Cooperative Central Federation Ltd.) is a national-level apex body that supports agricultural cooperatives through training, capacity building, and policy advocacy. It aims to strengthen cooperatives in governance, financial management, and entrepreneurship.

2. How does NACCFL empower women in agriculture?
NACCFL empowers women by providing specialized leadership and governance training, encouraging female participation in cooperative boards, and supporting the formation of women-led cooperatives. This helps women access financial services and decision-making roles.


3. What types of training does NACCFL offer for cooperative development?
NACCFL offers training in areas like bylaws rewriting, strategic planning, business plan development, proposal writing, and agro-industry management. These are targeted at cooperative leaders, employees, and new board members to build skills and governance capacity.


4. What is the Agriculture Sector Development Programme (ASDP)?
ASDP is a government-led initiative, supported by IFAD, aimed at reducing poverty and improving food security in Karnali Province. NACCFL plays a key role in ASDP by training and mentoring cooperatives to improve rural financial services and agricultural productivity.


5. How do cooperatives contribute to microfinance in Nepal?
Cooperatives act as grassroots financial institutions in rural Nepal. With capacity-building support from NACCFL, they provide microfinance services such as savings, loans, and insurance to farmers and small entrepreneurs, especially those in marginalized communities.
In conclusion, capacity building and leadership development are critical for sustainable agriculture and rural development in Nepal. Organizations like NACCFL play a transformative role in this space- empowering cooperatives, enhancing women’s leadership, strengthening microfinance, and nurturing the next generation of agricultural leaders. By investing in skills, governance, and inclusive participation, Nepal is laying the foundation for a more resilient and equitable agricultural sector.
 

References:
●    https://www.ifad.org/en/w/countries/nepal
●    https://www.skbbl.com.np/
●    FAO Capacity Development Support for NACCFL: https://www.fao.org/capacity-development/news-list/detail/en/c/469732/
●    https://myrepublica.nagariknetwork.com/news/123179/