NRNA plans to include a million Nepalis in Development Fund

Kathmandu, Apr. 23

The Non Resident Nepali Association (NRNA) has said that it would connect about a million Nepalis abroad to its newly announced NRN Nepal Development Fund.

"We want to create a largest investor network for Nepal that will not only invest in the priority areas of the country but also provide good return to the investors," NRNA President Kumar Pant said at the weekly 'Artha Sambad' organised by the Nepalese Association of Financial Journalists (NAFIJ) on Friday.

The NRNA has received proposals of about 170 projects that want investment from the fund. According to Pant, an expert committee is studying the proposals and the projects would be chosen on the basis of the experts' recommendation.

He said that the investment would be made in the areas like agriculture, infrastructure and tourism – that are accorded priority by the government.

Stating that the current Rs. 10 billion fund could be increased up to Rs. 100 billion in a few years to come, he maintained that the return to the investors wouldn't be given from the interest of the money of the fund deposited in a bank account but from the return of its investment in infrastructure projects.

The NRNA had announced the establishment of the fund at a programme organised at the Ministry of Finance earlier this week. The company is already registered with the Company Registrar's Office.

Nepal Government will invest Rs. 500 million (5 per cent) equity in the fund, promoters will have 15 per cent shares, and the rest -- 80 per cent -- would be raised from the NRNs across the world through an Initial Public Offering (IPO).

NRNs in countries other than the SAARC members can buy the IPO.

The NRN had announced to establish the fund at the Nepal Investment Summit in 2019, a month before the announcement of lockdown due to the COVID-19 pandemic.

"The pandemic delayed the registration and preparation of the fund. However, we have competed all necessary procedures, soon it will exhibit results," said Pant.

Speaking about the investment promotion for Nepal, he said that the NRNs were playing the role of the goodwill ambassador in that regard.

"We have proposed the Nepali missions abroad to organise roadshows to attract foreign investment to Nepal. We need to increase the promotional campaigns and inform the investors about the improved investment climate in Nepal," he said. "While war-trodden countries like Rwanda can shorten the business registration process to about 20 minutes and attract a large amount of investment, why not Nepal that has so many potentials?" he questioned.

 Published in The Rising Nepal daily on 24 April 2021.