CASA programme mobilises over Rs 830m in investment for Nepal’s agribusiness sector

KATHMANDU: A UK-funded programme that has mobilised over Rs 830 million (£ 5.37 million) in private investment and connected more than 156,203 smallholder farmers (62% women) to markets across Nepal officially wrapped up today, but its lessons offered valuable direction for future agri-investment efforts.

The Commercial Agriculture for Smallholders and Agribusiness (CASA) programme, implemented by NIRAS and Swisscontact since 2019, set out to turn smallholder-based supply chains into commercially viable business opportunities.

Despite employing over 60% of Nepal’s population, the agriculture sector remains critically under-financed, with banks meeting only 20% of the estimated $3.6 billion financing gap, according to UN-ESCAP. In this context, CASA demonstrated how targeted support for agribusinesses could overcome barriers to investment and market inclusion. By the close of the programme, 37 agribusinesses across high-potential value chains had become more investment-ready and better connected to farmers.

CASA’s interventions ranged from designing climate-smart training for smallholders, conducting energy audits and securing export certification to investor matchmaking and governance reform. Many small and medium enterprises in the dairy and vegetable sectors, as well as a herbal-product exporter and a fish-feed manufacturer, have increased profits and expanded the number of farmers with whom they engage.

A key finding of the programme was that investment must be tailored to agriculture’s realities. Rigid loan structures often fail where cash flow is seasonal and enterprises are family-run. CASA proved that flexible repayment terms, blended capital and risk-shared equity—not inflexible monthly loans—can fuel growth. However, CASA officials stress that real impact takes time, requiring mindset shifts, governance reform and legal guidance.

Speaking at today’s “Scaling Agribusiness Success” close-out event, British Ambassador to Nepal Rob Fenn said, “There is a clear need for financial support to reach medium-sized businesses, particularly in agribusiness, as that is where quality jobs are created to retain young people in Nepal or encourage their return. The British Embassy’s new programme, Nepal in Business (NIB), draws on the lessons from CASA and is set to put those insights into practice.”

“Traditional lending models simply do not work for agri-SMEs,” said Manish Bikram Shah, CASA Nepal Country Manager at Swisscontact. “With just 3.9% of total PEVC investments since 2012, Nepal’s agribusiness sector remains critically under-financed despite its economic significance. What these businesses need is flexible capital, strategic support and market access.”

“CASA has been on a learning journey, piloting innovative solutions to shift the dial on investment in inclusive business in Nepal. Others now need to pick up the baton and scale those that worked,” added Steve Morris, CASA Team Leader at NIRAS.

A high-level panel at the event discussed how CASA’s lessons can inform future donor programmes and national policies aimed at boosting private-sector-led growth in agriculture. As Nepal faces rising climate threats and growing food system demands, CASA leaves behind a tested model: invest in the businesses that buy from smallholder farmers, and you grow the entire chain with equitable returns.