U.S.-Nepal ICT Collaboration: Unlocking Digital Opportunities in Nepal’s Tech Decade
24th July 2025, Kathmandu
Explore how the recent U.S.-Nepal ICT Commercial Opportunities Webinar, led by AmCham Nepal and the U.S. Embassy, is forging stronger ties, promoting investment, and unlocking immense potential in cybersecurity, AI, data centers, and digital innovation for both nations.
U.S.-Nepal ICT Collaboration
New Era of Digital Partnership
The global digital landscape is rapidly reshaping economies, and Nepal is emerging as a dynamic and promising player in this transformative shift. A recent landmark U.S.-Nepal ICT Commercial Opportunities Webinar, spearheaded by AmCham Nepal in close collaboration with the U.S. Department of State (Department of Commerce) and the U.S. Embassy in Kathmandu, marked a pivotal moment in fostering bilateral commercial diplomacy. This significant virtual event, held on July 22, 2025, successfully connected nearly 100 CEOs and professionals from leading ICT companies across Nepal and the United States.
It underscored a shared vision: to unlock mutual opportunities in critical areas such as cybersecurity, artificial intelligence, data centers, and broader digital innovation. The successful convening, amplified by the invaluable contributions of esteemed partners like the Confederation of Nepalese Industries (CNI), FNCCI, and the Nepal Association for Software and IT Services Companies (NAS-IT), signifies a strategic push towards a robust and interconnected digital future for both nations.
The Nexus of Opportunity: Why U.S.-Nepal ICT Collaboration Matters
Nepal stands at the cusp of a profound digital transformation, making it an increasingly attractive destination for U.S. technology companies seeking growth and strategic partnerships. This growing appeal is underpinned by several strategic factors:
Nepal’s Ambitious “Digital Decade” Vision:
The Government of Nepal has boldly declared the period of 2024-2034 as the “IT Decade.” This ambitious initiative aims to position Nepal as a regional ICT hub, with significant targets including generating 3 million ICT-related jobs and achieving a staggering NPR 3 trillion (approximately USD 22.5 billion) in IT service exports within ten years. This visionary framework, complemented by the ongoing implementation of the Digital Nepal Framework 2.0, provides a clear roadmap for digital advancement and highlights the government’s strong commitment to fostering a thriving tech ecosystem. Such a clear policy direction creates an environment ripe for foreign investment and collaboration, inviting international partners to be part of Nepal’s digital journey.
Strategic Location and Emerging Talent Pool:
Nestled between two of the world’s largest economies, Nepal offers a unique geographical advantage for businesses looking to expand their reach in South Asia. More importantly, the country boasts a young, vibrant, and increasingly tech-savvy population. With a significant portion of its demographic under 30 years old and internet penetration soaring (expected to reach 79% by the end of 2025, with mobile connectivity at 124%), Nepal possesses a formidable and cost-effective pool of talent eager to innovate and contribute to the global digital economy. This combination of strategic location and burgeoning human capital makes Nepal an ideal partner for U.S. firms seeking to diversify their global footprint and leverage skilled resources. Many Nepali ICT firms, with their track record of serving U.S. clients, demonstrate this proven competence in cross-border collaboration.
Game-Changing Policy Reforms and Investment Environment:
A significant catalyst for enhanced U.S.-Nepal ICT engagement is Nepal’s new IT/ICT ordinance, issued on January 10, 2025 (also referred to as the 2025 IT/ICT ordinance). This progressive legislation introduces several “game-changing” reforms designed to ease investment barriers and encourage foreign entry. Key provisions include:
Up to 100% Foreign Direct Investment (FDI) in ICT: This critical reform removes previous restrictions, allowing full foreign ownership in Nepali ICT firms, thereby significantly reducing complexity and increasing attractiveness for U.S. investors.
ICT Firm Expansion Abroad with Regulatory Approval: Nepali IT/ICT companies can now establish branches or liaison offices overseas with streamlined regulatory approval from the Ministry of Communications and Information Technology and Nepal Rastra Bank. This empowers Nepali firms to scale globally, often in partnership with international entities, and facilitate better client support.
Investment from Non-Resident Nepalese (NRNs) and Global Venture Funds: The ordinance actively facilitates capital inflow from the global Nepali diaspora and international venture funds, further boosting the sector’s financial liquidity and innovation capacity.
Tax Incentives and Special Economic Zone (SEZ) Investment Benefits: These incentives sweeten the deal for investors, offering tax breaks (e.g., potential 0% corporate tax for 15 years on IT exports) and simplified licensing within designated economic zones. Furthermore, the government is actively preparing to amend approximately 120 laws related to the economy and industrial development to create a more conducive and predictable regulatory environment.
This forward-thinking legal foundation significantly enhances investor confidence and signals Nepal’s readiness to integrate more deeply into the global digital economy.
Key Pillars of Collaboration: Sectoral Opportunities
The recent U.S.-Nepal ICT Commercial Opportunities Webinar highlighted several high-potential areas where U.S. expertise and technology can synergize with Nepal’s burgeoning digital needs, leading to mutually beneficial outcomes:
1. Cybersecurity:
As Nepal rapidly digitizes its public and private sectors, the demand for robust cybersecurity solutions is paramount. The increasing prevalence of cyber threats and data breaches underscores the critical need for advanced security measures. The Nepali cybersecurity market is projected to reach $54.60 million by 2029, with a 13.13% annual growth rate, and a projected demand for 1 million new cybersecurity professionals by 2025. U.S. cybersecurity firms are exceptionally well-positioned to offer:
Security software and audits: Protecting sensitive data and critical national infrastructure across sectors like banking, healthcare, and telecommunications.
Infrastructure protection: Safeguarding essential systems and networks.
Compliance with international standards: Ensuring adherence to global best practices in data protection and cyber resilience, aligning with Nepal’s evolving legal framework (e.g., Electronic Transaction Act, Data Protection Act). A dedicated budget for cybersecurity workforce development and national incident response is also being advocated.
2. Artificial Intelligence (AI):
Nepal is actively exploring the integration of AI across various sectors, as evidenced by its draft National AI Policy 2025. This creates fertile ground for U.S. companies specializing in:
AI-driven solutions for public services: Enhancing efficiency, transparency, and citizen-centric governance.
AI applications in industry: Optimizing processes, improving analytics, and fostering innovation in diverse sectors like agriculture (automated irrigation, pest management), healthcare, and tourism.
AI training and development: Building local capacity and integrating AI curricula in academic and vocational institutions to cultivate a sustainable AI workforce.
3. Data Centers and Cloud Computing:
The burgeoning digital economy and government institutions in Nepal are driving a surging demand for modern data infrastructure. While cloud adoption is still in its early stages, it presents immense opportunities for U.S. providers of:
Cloud hosting services: Scalable and reliable solutions for businesses and government data, addressing the rising reliance on technology across sectors.
Software-as-a-Service (SaaS): Delivering a wide array of accessible software applications.
Disaster recovery platforms: Ensuring business continuity and data resilience in an increasingly connected world.
Localized data compliance tools: Addressing specific regulatory requirements for data storage and processing within Nepal. A recent $29 million investment by IFC and Standard Chartered Bank Nepal Limited in WorldLink Communications for fiber networks and state-of-the-art data centers (including Nepal’s first EDGE-certified facility) highlights the significant momentum in this area.
4. Digital Innovation (Broader Scope):
Beyond core infrastructure, the webinar underscored opportunities in several innovative digital domains:
EdTech and E-Learning Platforms: With a strong emphasis on digital education and a large youth population, the market is expanding for Learning Management Systems (LMS), online certification platforms, and virtual classroom technologies to cater to Nepal’s students and professionals.
Fintech and Digital Payments: Nepal has witnessed a rapid surge in digital transactions, fueled by mobile wallets and banking. The recent integration of India’s UPI with Nepal’s National Payments Interface (NPI) further highlights this growth. Opportunities abound for U.S. fintech companies in developing mobile wallets, remittance tools, KYC/AML compliance software, and cross-border payment systems. The Nepal Rastra Bank’s establishment of a Digital Finance Innovation Hub in March 2025 further signals a commitment to fostering fintech innovation.
Green ICT and Sustainability: As Nepal prioritizes sustainable development, there’s a growing appetite for eco-friendly ICT solutions. This includes energy-efficient data centers, solar-powered devices, and low-power networks suitable for rural areas, aligning with global efforts to reduce environmental impact.
Pathways to Partnership: Facilitating Bilateral Investment and Growth
The U.S.-Nepal ICT Commercial Opportunities Webinar was not just a discussion forum; it was a launchpad for practical engagement. Key highlights demonstrated the tangible pathways available:
U.S. Agency Support:
U.S. government agencies are actively committed to facilitating commercial ties:
International Trade Administration (ITA) / U.S. Commercial Service: These agencies offer crucial market intelligence, partner matching services, and support for trade events, helping U.S. businesses navigate the Nepali market. The Nepal Country Commercial Guide provides valuable insights.
EXIM Bank: The Export-Import Bank of the United States provides export credit insurance, loan guarantees, and direct loans to support U.S. companies’ exports, making it easier for them to do business in Nepal.
SelectUSA: This U.S. Department of Commerce program promotes inbound investment to the United States. It presented pathways for Nepali tech investors to access the U.S. market, encouraging participation in its global summits and offering services like information on the U.S. regulatory landscape, federal incentives, and introductions to economic development organizations. This reciprocal flow of investment strengthens overall bilateral economic ties.
Nepali Private Sector Readiness:
Nepali industry associations play a vital role in fostering an enabling environment and preparing local companies for international collaboration:
Confederation of Nepalese Industries (CNI): CNI’s recent high-level dialogues with government officials underscore the private sector’s crucial role in shaping Nepal’s economic future, advocating for economic diplomacy, FDI attraction, and comprehensive policy reforms. Their vision includes expanding Nepal’s economy to USD 100 billion.
FNCCI: The Federation of Nepalese Chambers of Commerce & Industry focuses on creating a favorable business environment, with a strong emphasis on digital trade and supporting local businesses to meet international standards.
Nepal Association for Software and IT Services Companies (NAS-IT): NAS-IT is instrumental in developing Nepal’s IT industry, with initiatives like “Tech Peak Nepal: Orlando 2025” and virtual sessions on U.S. company registration, showcasing Nepali companies’ readiness for global markets, and connecting them with international opportunities.
Successful American Partnerships in Action:
AmCham Nepal members showcased compelling examples of how American partnerships have already yielded significant impact. Dileep Agrawal, Managing Director of WorldLink Communications, a leading Nepali ISP, highlighted how American technology and partnerships have been crucial in scaling local innovation, particularly in expanding high-quality internet services to rural Nepal. Similarly, AmCham members like Cedar Gate Technologies employ over 800 professionals in Nepal, developing healthcare analytics for U.S. clients, and SecurityPal, led by CEO Pukar Hamal, is redefining Nepal’s global image by supporting global firms like OpenAI and Snap Inc. These examples underscore the immense potential of American partnerships in propelling local innovation to both rural and global impact, with nearly 80% of Nepal’s ICT service exports currently tied to U.S. clients.
Beyond the Webinar: The Road Ahead
The U.S.-Nepal ICT Commercial Opportunities Webinar is indeed “just the beginning.” It has laid a robust foundation for continued engagement and collaboration. Sustained efforts in knowledge exchange, policy dialogue, and direct business matchmaking will be crucial to translate these opportunities into tangible economic transformation for both nations. By building meaningful partnerships, the U.S. and Nepal can unlock mutual prosperity, further integrate Nepal into the global digital economy, and contribute to its vision of becoming a prominent regional ICT hub. This ongoing commercial diplomacy, championed by organizations like AmCham Nepal, is paving the way for a vibrant, interconnected, and economically robust future for both the United States and Nepal.
“This strategic alliance, fostered through bilateral meetings, conferences, and seminars, is crucial for the betterment of both nations. It provides a vital platform for the exchange of knowledge, skills, and expertise, directly contributing to our shared digital future,” stated Chiranjibi Adhikari, CEO of One Cover Private Limited.
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