The UK-headquartered development finance institution CDC Group, Dutch development bank FMO, and Swiss Agency for Development and Cooperation (SDC) have jointly launched Nepal Invests, a platform that is slated to drive investments into the country.
The initiative undertaken by development finance institutions (DFIs) and a development partner will facilitate the entry of private capital into the country to augment its innovation efforts.
Nepal Invests will support business growth, strengthen investment and accelerate the country’s economic recovery plans from the onslaught of the COVID-19 pandemic.
The platform intends to mobilise additional supporting projects and contributions from other DFIs and development partners while engaging closely with the needs of the Nepalese private sector.
Five projects have already been identified that are central to supporting the objectives of DFIs in Nepal.
The platform will operate initially for 18 months, in what’s termed as ‘Discovery Phase’.
“CDC is an active investor in Nepal, we want to encourage more foreign direct investment into the nation,” said Srini Nagarajan, managing director and head of Asia, CDC Group.
Andrew Shaw, manager, capacity development, FMO, said that with the current initiative, the firm seeks to accelerate investments in the country and support foreign investors to focus on Nepal.
CDC Group is the UK’s first impact investor with over 70 years of experience in supporting sustainable businesses in South Asia and Africa.
The company has investments in over 1,200 businesses in emerging economies and a total portfolio value of £5.8 billion.
CDC Group Plc established its presence in Nepal last year – it appointed Rabi Rayamajhi as its country representative.
FMO last year considered a proposal to invest $10 million in Nepal-focused Dolma Fund Management’s second private equity fund.