3rd November 2023, Kathmandu
In a landmark move, the Government of Nepal has forged a strategic partnership by signing a Memorandum of Understanding (Nepal Government Signs) with six distinguished Development Finance Institutions (DFIs) in London, signaling a significant step towards attracting foreign investment into Nepal.
The MoU was officially inked by His Excellency Gyan Chandra Acharya, Ambassador of Nepal to the United Kingdom, and Jörg Frieden, Chairman of the Board of Directors of SIFEM AG. This historic agreement underscores Nepal’s commitment to enhancing economic growth through international collaboration.
Notable DFIs, including British International Investment (BII), BIO – the Belgian Investment Company for Developing Countries, FMO – the Dutch entrepreneurial development bank, Finnfund, Proparco, and SIFEM (Swiss Investment Fund for Emerging Markets), have joined hands to channel transformative investments into Nepal.
Speaking at a high-level investment conference, Finance Minister Dr. Prakash Sharan Mahat underscored the vital role of foreign investment in driving sustainable development. He emphasized the legal provisions that enable capital mobilization through international financial markets and called upon British investors to participate in Nepal’s renewable energy sector, emphasizing the collective effort to combat climate change.
Nepal Government Signs DFIs
This MoU reflects a concerted endeavor to foster a conducive investment environment, with a specific focus on revising and modernizing regulatory frameworks. The conference, hosted in London to commemorate the centenary of the Nepal-UK friendship treaty signed in 1923, witnessed participation from key Nepalese stakeholders, including the Ministry of Finance, Ministry of Energy, Water Resources and Irrigation, Nepal Rastra Bank, Investment Board Nepal, FNCCI, Independent Power Producers’ Association, Nepal (IPPAN), Invest for Impact Nepal, and an array of global participants—from European DFIs to British financiers, investors, insurance companies, and even the Nepali diaspora.
This partnership holds immense promise for Nepal’s socio-economic development and marks a pivotal moment in the nation’s pursuit of prosperity through international investment. Stay tuned for updates on the positive impact of these collaborative endeavors.