Sonika Manandhar’s Impact at One Young World 2023
Sonika Manandhar, CTO and co-founder of Aloi, has been making significant strides in fostering financial trust and accessibility for green micro-entrepreneurs. Aloi, which she co-founded with Tiffany Tong, is a social enterprise that aims to bridge the gap between informal credit histories and formal financial services. By providing a platform that tracks loan utilization and income, Aloi enables micro-entrepreneurs to build credible financial profiles. This data is then utilized by Aloi’s commercial partners to extend formal loans to these individuals. Additionally, Aloi is committed to enhancing financial literacy among micro-entrepreneurs, ensuring they can effectively manage and utilize loans. The ultimate goal for Aloi is to become a last-mile digital bank in Nepal, providing accessible financial services to underserved communities.
Photo credit: One Young World
In 2020, Sonika’s innovative work with Aloi was recognized when she won One Young World’s LEAD2030 Challenge with Standard Chartered Bank. This accolade was instrumental in Aloi’s early success, as it facilitated a crucial partnership with Standard Chartered’s Nepal branch. This connection marked Aloi’s first collaboration with a commercial bank, establishing a strong foundation for further partnerships within the financial sector in Nepal.
Aloi’s impact has been substantial. Currently, the platform boasts 2,300 active users, the majority of whom are women. These users have collectively secured $800,000 in formal loans. Beyond just financial services, Aloi provides comprehensive training in financial and digital literacy, as well as business management. This training aims to reduce the vulnerability of micro-entrepreneurs to predatory lending practices. Aloi has established partnerships with six commercial banks in Nepal, further solidifying its presence in the financial sector.
A significant portion of Aloi’s users, 70%, are involved in sustainable agriculture (Krishala), while the remaining 30% are active in the electric vehicle sector(Bijulipower). Aloi currently supports 135 electric vehicles, showcasing its commitment to sustainable and green initiatives. Looking ahead, Aloi plans to work with 3,000 farmers in the coffee and dairy sectors in 2024. These farmers will receive training in climate-smart agricultural practices and support in accessing scale-up financing. Sonika is also exploring opportunities to expand Aloi’s operations to Indonesia, aiming to replicate their success in new markets.
Reflecting on her experience with One Young World, Sonika highlights the pivotal role it played in Aloi’s growth.
“I went to One Young World as a Standard Chartered Ventures LEAD2030 Winner, and because of it we got connected with Standard Chartered bank in Nepal. That’s how we got our first commercial bank contract for Aloi and that’s still ongoing,” she notes.
One Young World: Empowering Young Leaders
One Young World is a global platform dedicated to empowering young leaders to create a fair and sustainable future. The organization’s community is truly global, encompassing young leaders, corporate partners, and supporters from every country and industry. This diverse community includes activists, humanitarians, world leaders, business leaders, thought leaders, entrepreneurs, politicians, and innovators, all working together towards common goals.
With the largest corporate footprint of any organization in the third sector, One Young World partners with over 190 global businesses, NGOs, and educational institutions. Leading companies from various sectors integrate One Young World into their global talent development, retention, and attraction strategies. Each year, many of these companies deepen their involvement, underscoring their growing commitment to empowering young people.
The organization’s mission aligns closely with the work of leaders like Sonika Manandhar, who are driving change and fostering innovation in their communities. By providing a platform for young leaders to connect, collaborate, and amplify their impact, One Young World continues to play a crucial role in shaping a more equitable and sustainable world.
Reference: https://www.oneyoungworld.com/ambassador-projects/aloi
References: a. 300 kg average coffee production in Nepal per farm (https://kathmandupost.com/money/2019/12/22/coffee-sector-performing-below-potential-due-to-archaic-ways ) x 11.82 kg CO2e mitigated per kg of coffee (i) / 1000 kg = 3.55 tCO2e mitigated per farm i. 15.33 kg CO2e per kg of coffee produced using traditional methods – 3.51 kg of CO2e per kg of coffee produced sustainably (https://old.risingnepaldaily.com/opinion/climate-friendlycoffee ) = 11.82 kg CO2e mitigated per kg of coffee b. $204 social cost of carbon (https://www.instituteforenergyresearch.org/regulation/epa-ups-estimates-for-the-social-cost-of-carbon/# ) c. 21,900 tCO2 mitigated over operational life cycle / 2,000 low-carbon vehicles introduced (https://www.ccacoalition.org/content/three-wheels-united# ) = 10.95 tCO2 mitigated per vehicle d. $4,726.60 PPP annual GDP per capita of Nepal (https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?contextual=region&locations=NP ) x 30% increase in GDP from financial inclusion efforts in frontier economies (https://www.lazardassetmanagement.com/uk/en_uk/references/fundamental-focus/financial-inclusion) = $1,417.98 PPP
