DN 2020 Annual Report now available here.
SUMMER 2021 UPDATE
Chairman’s Update
An update on the pandemic situation in Nepal, specifically in Sunsari where Development Nepal works:
Sunsari has experienced waves of lockdowns; in partial-lockdown scenarios, markets have been open to trade but livelihoods have been severely affected by lockdown limitations. Sunsari is one of three districts reporting the highest caseloads at the end of July, and hospitals have been overwhelmed with needs for intensive care treatment. It is important to note the virtually non-existent health infrastructure to manage Covid-19 cases.
Our local Nepali team are healthy and well, and all operations are being undertaken in a Covid safe manner. Savings and loan administration via community visits have been substantially scaled back.
This restricted activity has substantially impacted upon Co-operative savings deposits made and loan repayments for the past financial year. Whilst reduced loan interest rates were implemented, there is a very real probability of the need to provide more targeted loan rescheduling and bad debt write-offs later in 2021.
The recently established Agricultural Shop, providing Co-operative members access to fertilizer at reasonable cost, has also seen much lower activity.
Please reach out directly to us should you have a specific question at info@developmentnepal.org
As ever we thank you for your continued interest and support which is invaluable to the work we do through our local Nepali team.
Christopher Kelly, Chairman
What is the Situation in Nepal?
Nepal is hugely vulnerable to the surge in cases over its border with India where many migrant workers rely on trade and job opportunity. Covid-19 outbreaks have reached as far into the Himalaya as Everest Base Camp. Border towns are unable to deal with patient volumes in spite of military efforts to build isolation centers for returning migrant workers.
Testing is underreported and only 19% of the population has had the vaccination administered in comparison to more than half of India's eligible population receiving at least one dose. The health system can barely accommodate a few thousand patients, compared to an overall population of approximately 30 million people.
Mass public events, including festivals, political gatherings and weddings, have allowed cases to spread, along with some public complacency and slow government action. It appears that the delay in testing at reduced number of border entry points came too late to be effective in slowing the spread of cases.
Is Nepal in lockdown?
The latest lockdown in the Kathmandu valley started on April 29 and was lifted in early September, paving the way for schools to be reopened. Some easing measures have been put in place with a view to boost the economy ahead of Nepali New Year in coming weeks. Sunsari continues to experience periodic lockdown in the wake of transmission increasing by overcrowding in market areas following some earlier easing measures.
What is the effect of the pandemic?
With many sources of income having dried up for the duration of the pandemic, and schools experiencing closures in long periods of lockdown, many children have entered the workforce for the first time to support their families, commonly making far less than the minimum wage of 13,450 rupees per month (£80.71), or 517 rupees per day (£3.10). Many adult workers have not received income for over 12 months and in urban areas are unable to meet rent payments.
What is expected in the immediate future?
Sunsari has been named as 1 of 22 districts listed as the Red Zone for Covid-19 where the general public has been urged to follow extra caution and to stay at home. The local municipality office is providing testing once per week for each of the 11 Wards. Schools have not reopened yet.
Agricultural activity has not been impacted as greatly as last year - although seeds and fertilizer are available, prices have risen providing another challenge for the poorest communities whom Development Nepal supports.
All Development Nepal savings and loans transactions have been conducted from the local office rather than in the field - repayment of loans and commitment to saving has understandably become less consistent.
Ram, Development Nepal’s Programme Manager in Sunsari describes the phenomenal year of growth in 2018:
enabling more than 1,600 people to participate in the UB Co-operative
over 1,000 micro-loans distributed - opening up opportunity to more lenders
enabling small businesses to grow with good micro-credit repayment terms
thanks to Trustees, donors and supporters of UB Co-operative!