ARTICLES

Nepal looks at alternative investments

Ahead of the Nepal Investment Summit, some new ideas to attract FDI In the run-up to the third Nepal Investment Summit this weekend, there have been seminars, conferences and workshops where the discourse has revolved around the economy and the investment climate. The consensus that Nepal needs foreign direct investments (FDI) to grow was repeated, and the familiar litany of reasons about why it has not been able to was discussed. Policy advocates and regulators have understood that the lack of urgency is compounded by procedural inconsistencies, on top of the already deficient investment environment in the country. It is […]

A Background Policy Paper on Green Financing in Nepal

Executive Summary Despite the impacts of COVID-19 on human health and economy, green finance is gaining increasing momentum around the world, including in the Asia & Pacific region, as a strategy to move countries towards a low-carbon economy cost effectively. In this context, Nepal has a unique opportunity to capitalize on this wave of green finance by resolving the barriers, innovating financial tools and technology and establishing effective partnerships globally, regionally and locally moving forward. In Nepal, the current development of green finance is largely regulatory driven. At the same time, several Banks and Financial Institutions (BFIs) are also raising […]

Understanding Private Equity and Venture Capital

Deepak Sharma Investment Director, Business Oxygen (BO2)             Understanding: Private Equity and Venture Capital (PEVC) is gaining a lot of interest in Nepal and the number of PEVC firms has been growing. PEVC firms provide equity capital, also termed risk capital, to companies that are looking for capital to expand their businesses. Banks provide debts by collecting deposits from people, in the same analogy, PEVC firms provide equity investment to the companies from a pool of funds created from a limited number of investors. Banks provide debt to both entities and individuals while PEVCs provide […]

Alternative investments to attract FDI

In the past few weeks as Nepal faces trying times with falling growth and high inflation, Kathmandu has witnessed numerous seminars, conferences and workshops with the discourse revolving around the economy and investments. The consensus that Nepal needs foreign direct investments (FDI) to grow was once again repeated, and the familiar litany of reasons about why it has not been able to. Policy advocates and regulators have understood that the lack of urgency is compounded by procedural inconsistencies and added to the already deficient investment environment in the country.

Green is the colour of money and nature

In March, the World Bank approved a $150 million ‘Finance for Growth’ credit line to strengthen Nepal’s financial sector for green, resilient, and inclusive development. However, critics say lack of money has never been the issue for the country to make a transition to renewable energy, it is the dearth of political will. The Finance for Growth loan package kicks off a new climate agenda for Nepal by promoting climate finance resilience policies in banking, insurance, and capital markets, which lay the groundwork for the adoption of green loan incentives and new insurance and capital market products that are tailored […]

Nepal’s potential for blended finance: A country-level study

Southern Voice is a network of 50+ think tanks from Africa, Asia and Latin America. Since its inception in 2012, it has served as an open platform. It provides structured inputs from the Global South into the debates on the 2030 Agenda, and the SDGs, with a view to addressing the ‘knowledge asymmetry’ and ‘participation deficit’ that usually afflict such global discussions.   Download Article PDF

FOREIGN EQUITY INVESTMENTS FOR NEPAL’S PROSPERITY

Foreign equity investments in Nepal have been both in green field investing and brown. A green-field investment is where a parent company creates its subsidiary from the ground in a different country, whereas a brownfield investing is where an entity purchases existing facilities to begin new production in another country. Joint venture investments in banks would be an example of green-field investing and investments in hotels, hydropower, cement etc. would be examples of brown-field investing. In the past decade, the concept of Private Equity (PE) investing in Nepal would be considered a bit of both as it includes many approaches […]

Financing climate adaptation

November has been scintillating with COP26 deliberations in Glasgow and around the world in various side lines discussing, once again, how to arrest global warming. This time, with net zero pledges. Nepal has been a willing and obedient participant in these conferences through the years and has repeatedly endorsed all actions and commitments. As one of the most vulnerable nations affected by global warming, Nepal has clearly impressed the need for financial support to address this. It now needs to plan to implement climate smart measures and provide the “how” to the “why” billions of dollars are required. The most […]

‘नेपालमा ग्रीन फाइनान्सिङको उच्च सम्भावना’

काठमाडौं (अस) । सरोकारवालाहरूले नेपालमा ग्रीन एसएमई फाइनान्सिङको क्षेत्रमा उच्च सम्भावना भएको बताएका छन् । नेपाल इकोनोमीक फोरमले मंगलवार आयोजना गरेको ‘ग्रीन एसएमई फाइनान्सिङ इन नेपाल’ विषयक छलफल कार्यक्रमा सरोकारवालाहरूले यस्तो बताएका हुन् । नेपालमा ग्रीन एसएमई वित्तीय विकासका लागि क्षमता तथा यससम्बन्धी नीति निर्माणमा पनि काम गर्नुपर्ने उनीहरूको भनाइ छ । यसका लागि सरकारले नियमावली बनाउनु प्रशंसायोग्य रहेको उनीहरूले बताए । तर, उक्त नियमावलली कार्यान्वयन गर्न असफल भएको बिजनेश अक्सिजन प्राइभेट लिमिटेडका अध्यक्ष तथा प्रमुख कार्यकारी अधिकृत सिद्धान्त राज पाण्डे बताए । यस्ता नीतिहरू कार्यान्वयन गर्न सरकारले सबैसँग सहकार्य गर्नुपर्ने उनको भनाइ छ । ग्रीन फाइनान्सको लक्ष्य कार्बन उत्सर्जन […]

Private equity: A force for SME growth

Further reforms can help the market grow and attract more investments and best practices. In just half a decade, since the private equity market first broke ground in Nepal, it has provided welcome support to local entrepreneurs. With better access to capital, small businesses can now dream bigger. Private equity funds bring more than money to the table. They help build or grow dynamic, job-creating companies that can be potential game changers, spurring the development of the business ecosystem. For Nepal, this can help stimulate its economy, especially in the face of a global pandemic. Our research shows that 17 […]