USAID and Nepal: Partnering for Progress and Localization in Development

In January 2024, the United States and Nepal celebrated a significant milestone – 73 years of bilateral relations. Since 1951, Nepal has received substantial development assistance from the United States Agency for International Development (USAID), making it the oldest development partner to support Nepal’s growth and prosperity. Over the decades, USAID’s role in Nepal has evolved from system strengthening to fostering genuine partnerships and local empowerment.

Nepal’s journey of development has been marked by political shifts, infrastructure advancements, and progress in healthcare and education. As the country evolves, so does its government, presenting new challenges and opportunities for collaboration. USAID has adapted its approach to align with Nepal’s priorities, emphasizing partnership and local ownership.

Priority areas

The priority areas of USAID in Nepal reflect the country’s development agenda. USAID focuses on three main things to help Nepal grow: supporting federalism, inclusivity, and building stronger institutions and resilience. From agriculture and tourism to education, health, and IT. USAID supports initiatives that resonate with Nepal’s aspirations for sustainable growth and prosperity. Even amidst the challenges posed by the COVID-19 pandemic, the focus remains committed to addressing critical needs and building resilience.

Ensuring inclusivity and reaching vulnerable populations are central to USAID’s mission in Nepal. By partnering with local institutions and communities, USAID strives to overcome barriers and deliver impactful interventions where they are needed most. Gender equality and climate change emerge as critical challenges, requiring collective action and innovative solutions.

Role of USAID in Nepal

  • Inclusive Economic Growth: USAID works to stimulate economic growth by promoting the competitiveness of local businesses in new sectors and improving agricultural practices.
  • Improving Health and Education: USAID invests in improving healthcare services, expanding access to education, and enhancing the quality of education and healthcare facilities by working directly with the government.
  • Building Infrastructure: USAID supports infrastructure development projects such as road construction, water supply systems, and energy infrastructure to improve connectivity and access to basic services.
  • Addressing Environmental Challenges: USAID supports initiatives aimed at mitigating the impact of climate change, promoting sustainable natural resource management, and conserving biodiversity.
  • Responding to Humanitarian Cases: USAID provides humanitarian assistance in times of crisis, including natural disasters and conflicts, by delivering emergency relief and support to affected communities.
  • Promoting Democratic and Federal Systems: USAID works to strengthen democratic principles, protect and promote fundamental freedoms, and further Nepal’s transition to federalism. USAID helps people get involved in decisions and makes sure the government works well and is accountable.

How to raise funds from USAID

Localization in Development

Working in Nepal’s development landscape presents its own set of challenges. Localization and prioritization are key principles guiding USAID’s engagement. In FY 2022, USAID direct local funding (percentage) to Nepal was 1.2%, up from 0.1% in FY 2021. By empowering local leadership and fostering dialogue, USAID aims to navigate complexities and drive positive change at the grassroots level. USAID/Nepal has set an ambitious target for 40% of its funding to directly support local partners or the government by 2025. To achieve this, the mission conducted a strategic portfolio review to assess risks and needs related to localization. Each technical office identified opportunities and barriers to localization, developing plans to mitigate challenges. An adaptive management plan was created, focusing on actions necessary for successful localization, subject to continual revision. Co-creation sessions engaged staff to define roles and approaches for localization. Additionally, a design team consulted with 67 NGOs and 11 Government of Nepal representatives to draft a $25 million support contract aimed at strengthening local partner capacity, facilitating G2G awards, and providing comprehensive services from pre-award to implementation stages.

As Nepal moves forward, USAID stands ready to support its aspirations for progress and prosperity. The journey towards development is a shared responsibility, requiring collective effort and commitment from all stakeholders. Through partnership, collaboration, and a shared vision for inclusive development, USAID and Nepal embark on a journey of transformation, where every voice is heard, and every community is empowered to thrive.

The partnership between USAID and Nepal exemplifies the power of collaboration and localization in driving sustainable development and positive change. Together, they forge a path towards a brighter future, where the potential of every Nepali is realized, and no one is left behind.

How can a Nepali NGO build a partnership with USAID?

Building a partnership with USAID is beneficial for Nepali NGOs to enhance their capacity and expand their impact. Here are some steps that Nepali NGOs can take to build partnerships with USAID.

Understand USAID priorities: NGOs should familiarize themselves with USAID’s strategic priorities, focus areas, and funding opportunities. USAID publishes information about its programs, initiatives, and funding opportunities at https://grants.gov/. NGOs should align their goals and activities with USAID’s priorities to demonstrate relevance and potential for collaboration.

Networking and Engagement: NGOs can engage with USAID through networking events, workshops, conferences, and seminars. These platforms provide opportunities to meet USAID staff, learn about their programs and initiatives, and explore potential areas of collaboration. Building relationships with USAID officials and other development stakeholders can help NGOs gain insights into funding opportunities and partnership requirements.

Develop Strong Proposals: The proposals should be strong and competitive and articulate the NGO’s objectives, activities, expected outcomes, and sustainability plans. Proposals should demonstrate how the NGO’s work aligns with USAID’s priorities and how collaboration with USAID can contribute to achieving shared goals. NGOs should also ensure that their proposals adhere to USAID’s guidelines and requirements.

Demonstrate Capacity and Track Record: NGOs should demonstrate their organizational capacity, track record, and ability to effectively implement development projects. NGOs can showcase their past achievements, successful interventions, partnerships, and impact stories to illustrate their credibility and effectiveness as development partners. Building a strong reputation for accountability, transparency, and results can enhance NGOs’ credibility and attractiveness to USAID.

Seek Subgrants and Partnerships: NGOs can explore opportunities to receive subgrants or become implementing partners of USAID-funded projects. USAID often collaborates with local NGOs to implement its programs and initiatives, particularly in areas where local expertise and knowledge are critical. Click here at https://www.usaid.gov/nepal/partnership-opportunities to learn about the partnership opportunities for Nepal. NGOs can leverage their local knowledge, networks, and understanding of community dynamics to design and implement contextually relevant interventions.

Build Partnerships with Other Stakeholders: NGOs can strengthen their partnership prospects with USAID by collaborating with other stakeholders, including government agencies, international organizations, academia, private sector entities, and community-based organizations. Building strategic alliances and partnerships can enhance NGOs’ credibility, leverage resources, and create synergies for achieving common development objectives.


About the author

Amrita Tamang

Amrita is a graduate student in International Relations and Diplomacy with a keen interest to work in the field of the humanitarian and development sectors. She has years of experience and knowledge in proposal writing, report writing, and data analysis. She now uses her acquired skills to contribute to research in the development sector.

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