Germany funds community projects in Nepal with €86,330 grant

KATHMANDU: The Embassy of the Federal Republic of Germany in Nepal has signed cooperation agreements with several Nepali organizations to implement four community-level development initiatives across the country under its Small Grant Development Project 2026, committing a total funding of €86,330 aimed at improving livelihoods, women’s empowerment, and refugee welfare.

The embassy announced that the grants will support projects in Siraha, Pokhara and Itahari, while also strengthening humanitarian services for refugees in Nepal. The initiatives focus primarily on economic empowerment of marginalized communities, skills development, and social protection programs.

Focus on Marginalized Women in Madhesh

One of the projects will be implemented by Anurodh Nepal in Lahan Municipality of Siraha district, targeting Madheshi and Dalit women who face significant economic and social barriers.

The project aims to train women in eco-friendly craft production using bamboo and banana fiber, while also providing entrepreneurship and cooperative management skills. The initiative is designed to help participants establish a women-led cooperative enterprise, enabling sustainable livelihood opportunities and economic independence.

Germany has committed up to €13,860 for the program, which also includes awareness activities aimed at reducing gender-based violence and strengthening women’s financial autonomy.

Livelihood Support for Caregivers in Pokhara

Another major component of the funding will support women caregivers in disadvantaged settlements in Pokhara Metropolitan City through a project implemented by Nucleus for Empowerment through Skill Transfer (NEST) Pokhara.

The initiative targets women who care for family members with disabilities, mental illness, or other vulnerabilities in wards 2 and 8 of the city.

The program will establish cooperative-managed livelihood enterprises, introduce skill-development training, and provide production equipment such as sewing machines and beekeeping kits to enable income-generating activities.

The German embassy will provide up to €24,300 to implement the project.

E-Rickshaw Program for Vulnerable Families

In eastern Nepal, the organization Lakshyadeep will implement the “GreenRide to Prosperity” project in Ward No. 15 of Itahari Sub-Metropolitan City, particularly targeting marginalized households from Tharu, Risidev, Bishwakarma and Shah communities.

The program will train selected individuals in e-rickshaw driving, assist them in obtaining driving licenses, and provide electric rickshaws to economically vulnerable families to create sustainable employment.

Germany has allocated up to €24,270 for the initiative, which aims to improve household income and access to economic opportunities for disadvantaged communities.

Refugee Support Program

The fourth project will be implemented by The Lutheran World Federation Nepal, focusing on improving the living conditions of newly arrived refugees in Nepal.

The initiative will enhance water, sanitation and hygiene (WASH) facilities, while also strengthening health services, psychosocial support, and livelihood resilience among refugee communities.

The German government has committed up to €23,900 for the program.

Germany–Nepal Development Partnership

German Ambassador to Nepal, Udo Eugen Volz, said the new grants reflect the longstanding partnership between the two countries and complement larger bilateral development cooperation programs.

According to the embassy, the small-scale grant scheme is designed to support grassroots initiatives that address local needs while promoting inclusive development and long-term community resilience.

“These projects are rooted in local communities and built for long-term impact,” Ambassador Volz said, noting that the grants specifically target support for marginalized groups across Nepal.

The Small Grant Development Project is part of Germany’s broader development engagement in Nepal, which includes cooperation in governance, climate action, sustainable development, and social inclusion programs.