Investment in Nepal: Unlocking the Door to Prosperity

The two days long Nepal Investment Summit concluded with great aspiration last week on March 29 & 30 in the capital. More than 735 foreign delegates from 40 different countries 300 plus companies across the globe participated in the summit, which opens the door of investment to the country of Himalayas. The first-day session was kicked off with the prodigious inauguration speech by Prime Minster Oli. Nepal almost a virgin land for investment in every sector which are equally profitable and prosperous. The government is more committed to providing environment conducive business and protection of foreign investment. The event was successfully organized by the Government of Nepal and Investment Board Nepal aims to attract more foreign investors in the country.

Image Source: Nepal Investment Board

Now, Next

The wrap-up session of the summit concluded with 15 memorandums of understanding (MoUs) and draw application for 17 projects to invest in Nepal. The major notable deal signed on the Hydropower, Solar energy, Tourism, and Infrastructure. Companies from India and China are more fascinated to invest in the Hydropower sectors. This clearly shows that Nepal has an ample opportunity in the power segments and the whole world is looking after it. The potential in agriculture to education, health care to technologies are the next major sectors to invest here in Nepal. One way is open and potential message has been delivered to the world, Nepal is the next land of investment.

Government shows identical commitment to the investors and looking to move forward. Though it’s decent promises, there need lots of preparation and vigorous business environment to move forward. Some political and minority hindrance must settle down first and more serious on foreign investment protection. One-tap or fast track application procedure to be launched for foreign companies to work out on the company’s registration procedure to other formalities to doing business in Nepal. Policy and regulation are to be very concise. The government should make an appropriate decision mainly on revenue and tax generation from foreign investors. The country GDP and economic growth will subsequently mark more important for a least developed country like Nepal when there will be more Foreign Investment. So, this might be more challenges for Nepal, but it’s not impossible. Major political parties, Bureaucrats, private sectors and multiple chambers of commerce plays an enormous role. They must be in the same ground for coordination and collaboration with foreign investors to move into the next hype.

Lesson to be Learned

It clearly shows out that Nepal Investment Board and Government of Nepal are not doing their minimal homework which missed out to attract the companies from the United States and European Union (EU) Nations. Nepal and the US have more than 70 years of diplomatic relations and US remain the major Foreign Donor and project under Millennium Challenge Corporation (MCC) of worth $500 million are consecutively implemented here in Nepal. Foreign Ministry of Nepal, Nepalese Embassies and Consulates are failed to appeal to participate and bring more investment and companies in Nepal. This raises the question mark among the Nepalese diplomats.  The government should learn about the appropriate step before moving forward. Multiples meetings are needed to carry out among the diplomats, private sectors, concern business persons and all who are directly or indirectly involved in it. This is just an alert for the Government to be more serious and sensible when conducting substantial summit.

Youth for Tomorrow

According to Nepal’s National Youth Policy data 2015, shows approximately 20.8 percent of the total population of the country falls in the age group 16-25 while 40.68 percent of the population lies in the age group 16-40. This phenomenon accounts for the largest segment of the population of any country defined as ‘youth bulge’. This provides a very unique opportunity for Nepal to supply adequate youth power in job markets when more investment is done here. Easy access and low labor forces are next benefits for any companies who are willing to start a business. Every year more than 16 thousand young graduates from different universities across Nepal are ready to enter the workforce. There are multiple benefits that foreign companies can easily take from Nepal. But in the same way, the government should equally emphasize and introduced on On-Hand training, vocational and practical programs to the young graduates so that they can easily cope up with new technologies and innovation. Education, teaching and learning method must be revised as per world demand on the workforce.

Government is working on putting Nepal a middle-income country by 2030. We have only around 10 years left to achieve this target. To meet out these guidelines Nepal has very supportive youth empowerment that can play continuous support if government and investment only create opportunity in job workforce.

Prosperous Nepal and Happy Nepali

Last year in Nepali New Year the Prime Minister Oli addressed the outline plans from gorgeous Rara to take Nepal into a new destination. With aimed to promote Nepal from its current status of underdeveloped country 2022 along with the achievement of 17 sustainable goals. Now the time is ready to welcome investors to the country and start to work simultaneously. Nepal with adequate resources, tourism destination and great hospitality has created ample space for any country to make investment destination. This is one new chapter with an aim to rise in economic growth and per capita income to make Prosperous Nepal and Happy Nepali.

Nepal is in the right conditions and creating a footprint to focus on accelerating economic and social development. The development, infrastructures, and systems are not built overnight. Nepal is in the development frontier. So, lots of dedication, motivation, and vision are required. If everything is going per the situation, support from all sectors then the prerequisites for reaching the economic phosphorous and growth by 7 percent and are possible.

Change is never a finite process; the summit is a good beginning and we are with hope and confidence that Political commitment and Leadership let Nepal in new era of beginning. The eager of economic transformation is waiting.