Nepal offers huge investment potential

Two successful investors — former president of Non-Resident Nepali Association (NRNA) Upendra Mahato and Ncell's chief financial officer Tommi Holopainen — shared their experiences and encouraged the private sector delegation from the 20 Asia-Pacific nations to take risk, courage and find local partners to invest in Nepal. They mentioned that the time was opportune and the country offers huge potential in every sector as it has just started its journey towards economic development.

"Every sector in Nepal has huge potential," said Mahato, addressing the session 'Investment Opportunities in Nepal', during the 26th conference of the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) here in the valley today.

"There are difficulties in doing business in every country around the world," he said, adding that it is, however, easier to invest in Nepal compared to other nations.

This conference will help place Nepal in the business map of Asia and the Pacific, said Mahato, who lives in Russia but has invested in Nepal. “However, don't go for a quick-fix solution and allocate enough funds for building the capacity of local human resources for a long-term business prospective," he suggested.

Holopainen, on the occasion, shared Ncell's experience in investing in Nepal, as the company has invested over $500 million in the last four years. "We have started to repatriate dividends to our parent company," he shared.

The country has simplified the dividend repatriation process, various tax and customs tariff, and industrial policy besides forming the Investment Board as a one-window shop to make it easier for investors, said economic advisor to the prime minister Rameshwor Khanal, outlining the investment potential in Nepal.

"Hydropower, tourism, infrastructure — airports, roads, industrial corridor — agriculture, health, education, mining, and IT/BPO are some of the potential sectors that foreign investors can look at," he said, informing the delegation about the government's preparation for 50 mega projects soon.

The meeting with a slogan ‘A Vision for Shared Prosperity’ has seen private sector representatives of — who are eager to share opportunities and collaborate — the Asia-Pacific region.

The march towards prosperity will not be possible without the private sector as the locus of growth, said caretaker prime minister Dr Baburam Bhattarai addressing the session.

Nepal is indeed striving for an economic revolution and "I believe that the private sector, with its managerial, financial, and technical prowess, is the best catalyst to move the agenda forward," he said, adding that the government is committed to ensuring that investors are provided the best investment climate that yields the highest returns with minimal costs and efficient service delivery.

Chairing the session, president of Federation of Nepalese Chambers of Commerce and Industry — the organiser of the conference — Suraj Vaidya urged the visitors to make best use of their visit and forge collaborations with Nepali businesses.

Similarly, addressing the session, 'Asia in the Global Economy', finance secretary Krishna Hari Baskota also said that the government has taken various policy measures to attract foreign investment to Nepal.

 

Hydropower is key

Asia is moving forward rapidly but all Asian nations must be on the same train. However, the growth model needs change and high growth economies should leave room for lesser ones to have inclusive growth in the region. The world has become competitive and countries are moving fast but Nepal is standing still. It needs a strong leadership that keeps pushing for key programmes for growth. Hydropower development is key to attract foreign direct investment. There is no dearth of funds but lack of determination and consistency in policy are constraints. After the country has enough power, more FDI will flow into Nepal as the country offers cheap labour and energy. Nepal should join hands with India and China, and compliment their growth with more power generation.

— Dr Supachhai Panitchpakdi, UNCTAD-secretary general

Concentrated approach key

Nepal should concentrate in one area that it thinks is key without being distracted in many areas. If one tries many things, it will be difficult to achieve anything. Nepal should identify one priority industry where it wants investments. For example, it can develop itself as a tourism hub with its serene beauty and offer a global shopping experience concentrating in service and retail trade. However, the government needs to assure the security of investments and increase the domestic private sector's confidence as they can invite foreign partners. Such a conference will help Nepal get international exposure and network with prospective investors. — KK Modi, CACCI-president emeritus

International exposure key

World Chambers Federation is present in 140 countries with 15,000 members around the globe. It helps organise chambers and works parallel to the International Chamber of Commerce. After the 2008 economic crisis, the weight has shifted to the Asia-Pacific nations as the region's consumers are going to be the key. There needs to be more cooperation in the region unlike the current confrontation. CACCI helps the private sector share information and increase cooperation between them. Nepal has to take advantage of its geographic location and attend more transnational conferences to be part of the international business community. Opening up the economy to the outer world will help Nepal invite foreign investment in the long run. — Rona Yircali, World Chambers Federation-chairman

Institutional reform key

After the collapse of the USSR, Georgia was also in a poor shape as we lost our market. But in the last eight years, we have concentrated in institutional reforms and today Georgia is a more firm economy and we are expanding our businesses. Nepal can also learn and take advantage from the Georgian experience and concentrate in institutional reform that is key to success. Good will and wish of the leadership can make investments look attractive. Domestic investment is also key to attracting foreign investment. Georgians like mountains and more of them could be attracted to Nepal. Nepal, which is placed in between the two rising economies of Asia, should take advantage from the huge markets across the borders. — Jemal Inaishvili, Georgian Chamber of Commerce-board member

More information key

CACCI is important as it represents significant business people from the Asia-Pacific region. We can rely on our sister organisations and exchange information to expand our businesses, establish contacts, and promote investment and cooperation as it is a networking opportunity. There is a huge lack of information in Russia about the investment opportunities in Nepal. This conference has provided solid ground for Russians to understand Nepal. Chamber of Commerce and Industry of the Russian Federation signed a memorandum of understanding with FNCCI last year and is working in partnership with Russia-Nepal Chambers of Commerce, besides Non Resident Nepalis, to promote cooperation. The sister chambers are now facilitating and more business people are coming to Nepal to look for opportunities in hydropower, road infrastructure and cement factories. — Tatiana V Legchilina, Chamber of Commerce and Industry of the Russian Federation, International Cooperation Department-deputy director