Innovative Financing Solutions for Water-Agriculture Innovations in Nepal

Fanaian, Safa; Shrestha, Shisher; Adhikari, Aashika; Magar, K. T.; Rana, O.; Pokharel, S.; Sapkota, H. S.

Innovative Financing Solutions for Water-Agriculture Innovations in Nepal

Autores

Editor

International Water Management Institute

Descripción

This roundtable report documents a half-day consultation on innovative financing solutions for water–agriculture innovations in Nepal, hosted by the International Water Management Institute (IWMI) with support of Nepal Investment Mega Bank Limited (NIMB) under the CGIAR Scaling for Impact program. Bringing together more than 20 participants from commercial banks, cooperatives, the private sector, research organizations, and development partners, the roundtable aimed to examine constraints faced by financial institutions, identify policy and market gaps, and explore practical pathways for scaling inclusive and climate resilient water–agriculture innovations. Discussions highlighted persistent constraints, including fragmented policy implementation, high transaction costs, limited access to tailored credit, weak insurance penetration, and insufficient de-risking mechanisms. Participants emphasized the potential of blended finance instruments, loan guarantee schemes, parametric insurance, and digitally monitored loan products to reduce risks for both farmers and lenders. Well-governed cooperatives were recognized as critical intermediaries, alongside the need for capacity-building in financial literacy and clearer contractual arrangements. Technology-enabled solutions—such as solar irrigation, digital finance, and ICT-based advisory services—were seen as promising but underutilized due to affordability and institutional constraints. The report concludes with prioritized recommendations and follow-up actions to strengthen enabling policies, advance public–private–community partnerships, enhance inclusion—particularly for women and vulnerable groups—and sustain stakeholder engagement through regular deliberations on these topics.