This evaluation reaffirmed the critical role of independent, expert-led programme reviews in driving adaptive development. It ensured that Sakchyam moved forward with stronger foundations, sharper targeting, and greater resilience-building capacity across Nepal’s underserved communities.
— Nepal —
inclusivity. innovation. resilience
Bridging the Gap: Evaluating and Enhancing Nepal’s Sakchyam Financial Inclusion Programme
“Access to finance is the lifeblood of agricultural resilience. A well-structured credit guarantee scheme can bridge the gap between farmers and financial institutions, ensuring sustainable growth in the rice sector.”
— Dr. Shenggen Fan, Former Director General, IFPRI
Challenge
By 2018, the Sakchyam – Access to Finance for the Poor Programme, funded by UKaid through DFID, had completed three years of operations with a mission to improve financial inclusion across Nepal. Despite notable progress, systemic issues persisted:
- Financial Exclusion: Large segments of Nepal’s rural population remained unbanked or underserved.
- Uncovered Disaster Risks: Communities regularly affected by natural disasters lacked access to tailored financial instruments like microinsurance or emergency lending.
- Programmatic Gaps: The programme’s original design did not fully account for regional disparities, gender-based barriers, and the growing impact of climate risks.
In light of these challenges, DFID commissioned a comprehensive third-year review of Sakchyam to assess its performance and inform mid-course corrections.
Strategy
The review was led by Russell Leith, head of GG International’s Insurance Finance & Risk Division, who guided a multidisciplinary team through an in-depth, evidence-based assessment.
Key strategic activities included:
- Comprehensive Results Review: The team evaluated Sakchyam’s outputs, outcomes, and institutional partnerships against its original objectives.
- Gap Analysis: A detailed benchmarking exercise was undertaken to identify discrepancies in target achievement, product delivery, and inclusion outcomes.
- Disaster Lens Review: The assessment emphasized vulnerabilities not covered under the existing programme, particularly for disaster-prone and climate-vulnerable communities.
- Stakeholder Engagement: Consultations were held with financial institutions, community representatives, regulators, and Sakchyam beneficiaries to validate findings and co-design forward-looking solutions.
- Product Innovation Recommendations: The team proposed new financial instruments—such as weather-indexed insurance, rapid-disbursement credit lines, and women-focused savings products—to expand coverage and deepen impact.
Transformation
GG International’s review, under Russell Leith’s leadership, produced actionable insights that significantly shaped Sakchyam’s second phase:
- Expanded Financial Products: The programme adopted a roadmap for introducing disaster-responsive and gender-sensitive financial tools.
- Policy-Level Recommendations: The findings informed broader financial inclusion strategies adopted by Nepal’s financial regulators and development partners.
- Realigned Priorities: Focus shifted toward remote provinces, low-income households, and populations historically excluded from formal finance.
- Strengthened Programme Accountability: Monitoring frameworks were refined to better track inclusion metrics and regional performance.