A UK-funded programme that has helped mobilise over Rs830 million (£5.37 million) in private investment and connect more than 156,203 smallholder farmers—62 percent of them women—to markets across Nepal officially wrapped up on Wednesday.

The Commercial Agriculture for Smallholders and Agribusiness (CASA) programme, implemented by NIRAS and Swisscontact, has worked since 2019 to tackle a long-standing issue in Nepal’s agriculture sector: transforming smallholder-based supply chains into commercially viable business opportunities.

Although agriculture employs more than 60 percent of Nepal’s population, the sector remains severely underfinanced.

UN-ESCAP says banks meet only 20 percent of the estimated $3.6 billion financing gap. Against this backdrop, CASA aimed to demonstrate how targeted support to agribusinesses could overcome key investment and market inclusion barriers.

During the programme, 37 agribusinesses operating in high-potential value chains became more investment-ready and better integrated with farmers. CASA has helped establish what works and why.

Addressing the closeout event of the CASA programme, British Ambassador to Nepal Rob Fenn said, “There’s a clear need for financial support to reach medium-sized businesses, particularly in agribusiness, as that’s where quality jobs are created to retain young people in Nepal or encourage their return.”

According to him, the British Embassy’s new programme, Nepal in Business, draws on the lessons from CASA and is set to put those insights into practice.”

“Traditional lending models don’t work for agri-SMEs,” said Manish Bikram Shah, CASA Nepal Country Manager at Swisscontact. “With just 3.9 percent of total Private Equity and Venture Capital (PEVC) investments since 2012, Nepal’s agribusiness sector remains critically underfinanced despite its economic importance. What these businesses need is flexible capital, strategic support, and access to markets. That’s where the development sector must step in to unlock their potential.”

“CASA has been on a learning journey, piloting innovative solutions to move the needle on investment in inclusive business in Nepal,” added Steve Morris, CASA Team Leader at NIRAS. “Others need to pick up the baton and scale what has been proven to work.”

CASA’s efforts spanned from climate-smart training packages for smallholders and energy audits to export certification, investor matchmaking, and governance reform. In a statement, CASA said many small and medium enterprises in the dairy and vegetable sectors—as well as an herbal product exporter and a fish feed manufacturer—are not only increasing their profits but also expanding the number of farmers they work with.

One of the programme’s key takeaways is that investment models must be adapted to the realities of agriculture.

Rigid loan structures often fail in environments where cash flow is seasonal and businesses are family-run. CASA demonstrated that flexible repayment terms, blended finance, and risk-sharing equity—rather than fixed monthly loans—can better fuel agribusiness growth.