Foreign investors commit Rs 30.09 billion capital injection in Nepal

KATHMANDU: In a significant boost to Nepal’s economic landscape, foreign investors have pledged a total capital injection of Rs 30.09 billion during the initial nine months of the current fiscal year. This surge in investment underscores growing confidence in Nepal’s potential as an emerging market.

According to data compiled by the Department of Industry (DoI), the investment commitment witnessed a nominal increase between mid-July 2023 and mid-March 2024 compared to the same period last year.

In the corresponding timeframe of the previous fiscal year, Nepal garnered foreign direct investment (FDI) totaling Rs 28.11 billion, reflecting a steady upward trajectory in investor interest.

The DoI’s records indicate the approval of investments from 269 foreign firms by the conclusion of the third quarter. Notably, the past month alone saw the department granting permission to 16 foreign firms to commence operations within Nepal’s borders, highlighting a continued influx of foreign capital.

A groundbreaking development emerges with the total FDI pledged by foreign investors reaching an impressive Rs 480 billion, involving 6,128 foreign firms.

This substantial commitment signifies a vote of confidence in Nepal’s economic prospects and underscores its appeal as an investment destination.

Breaking down the approved FDI, 253 ventures fall within the category of small industries, signaling diversified investment interests. Additionally, 13 ventures are classified as medium industries, with three categorized as large industries, indicative of a broad spectrum of investment opportunities within Nepal’s burgeoning economy.

Of the total FDI commitments, a notable 122 firms express intentions to invest in Nepal’s thriving tourism sector, constituting the largest proportion at 45 percent. This underscores the sector’s resilience and attractiveness to foreign investors, paving the way for sustainable growth and development in tourism-related ventures.

Furthermore, 93 firms have pledged investments in service-related businesses, underscoring the growing importance of the service sector in Nepal’s economic landscape.

Additionally, nine firms are set to invest in information technology, six in infrastructure projects, five in agriculture, and two in mining ventures, reflecting a diverse portfolio of investment interests.

These promising developments position Nepal as a burgeoning investment destination, poised to capitalize on its strategic location, abundant natural resources, and growing infrastructure.

The influx of foreign capital is expected to stimulate economic growth, create employment opportunities, and foster socio-economic development across various sectors, solidifying Nepal’s position on the global investment map.