USAID launch $21m agricultural direct financing project

The United States Agency for International Development (USAID) and the Government of Nepal have officially launched the USAID Agricultural Direct Financing project, a $21m government-to-government (G2G) initiative aimed at advancing food security in Nepal. The announcement was made during a virtual event on Monday, which also saw the unveiling of the US government’s new five-year Global Food Security Strategy (GFSS) Nepal Country Plan 2024-2028.

The Agricultural Direct Financing project will support the federal, provincial, and municipal governments in Lumbini and Sudurpaschim provinces, helping them plan and implement agricultural development programs. The initiative aims to benefit 69,000 people across 53,000 hectares, introducing modern farming technologies to boost agricultural productivity.

The newly announced GFSS Nepal Country Plan 2024-2028 seeks to reform Nepal’s agricultural and food systems to reduce poverty, hunger, and malnutrition. It focuses on 26 districts in the Tarai and select hill regions, with an expanded emphasis on Madhesh province to better assist vulnerable communities.

Speaking at the launch event, US Ambassador to Nepal, Dean R Thompson, said, “This new GFSS Nepal Country Plan will strengthen the United States’ partnership with Nepal, the private sector, and local communities to achieve inclusive, resilient, and sustainable growth. Our new government-to-government agreement is a testament to our collective commitment to advancing food security in Nepal.”

Nepal’s Minister of Agriculture and Livestock Development, Ramnath Adhikari, described the launch as a significant milestone in the longstanding partnership between Nepal and the US. “Nepal is committed to this collaboration as we work together to enhance food security and promote sustainable development,” he added.