Second DFI Mission concludes
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KATHMANDU: The recent conclusion of the Second Development Finance Institutions (DFI) Mission in Nepal signifies a major stride towards broadening investment opportunities in the country's financial sector.
The mission, which began on April 23 and concluded on Friday, demonstrated a strong commitment to exploring investment opportunities in Class B banks, microfinance institutions, and digital financial service providers.
During a pivotal discussion with Finance Minister Barsha Man Pun, DFI representatives received assurances of the government's steadfast commitment to facilitating foreign investments.
Minister Pun highlighted recent legal amendments aimed at simplifying investment processes, indicating a positive shift in Nepal's investment climate. "The issues related to easing investments by Development Finance Institutions are gradually being addressed by the government, which is a positive sign for mobilising local savings and attracting foreign investments. The government's recognition of DFIs as partners in development and economic growth is very encouraging for our investments," said Jörg Frieden, Chairman of the Board of the Swiss Investment Fund for Emerging Markets (SIFEM).
Organised by Invest for Impact Nepal, the DFI Mission saw participation from 14 Development Finance Institutions, Impact Investors from the United States, Europe, the United Kingdom, and Multilateral Agencies such as the International Finance Corporation (IFC).
The primary objective of the mission was to accelerate DFI investments in Nepal's financial service industry, extending beyond Class A Banks. Key engagements included meetings with significant governmental figures such as Finance Secretary Madhu Kumar Marasini, Nepal Rastra Bank Governor Maha Prasad Adhikari, and Deputy Governor Bam Bahadur Mishra.
Discussions centred around the execution of the Memorandum of Understanding signed between the Nepal Government and DFIs in October 2023, as well as addressing challenges related to easing entry and exit procedures for DFI investments. Additionally, representatives from the Nepal Bankers’ Association and DFIs jointly explored avenues for scaling up Nepal’s Financial Service Industry, while also assessing the role of DFIs in advancing sustainable financing initiatives.
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