IFC pledges support for Nepali private sector

Kathmandu, Aug. 1

The International Finance Corporation (IFC) has reaffirmed its commitment to collaborate with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) for the advancement of Nepali private sector.

In a meeting with the FNCCI's President, Chandra Prasad Dhakal, on Tuesday in Kathmandu, IFC's Vice President for Economics and Private Sector Development, Susan M. Lund, expressed her desire to enhance collaborations with the private sector in Nepal.

The IFC is a member organisation of the World Bank Group, and the largest global development institution focused exclusively on the private sector in developing countries.

The meeting held at the FNCCI secretariat aimed to foster collaboration and discuss ways to navigate the present economic challenges and boost development opportunities for the Small and Medium Enterprises (SMEs) in Nepal.

During the meeting, Dhakal emphasised the critical role of IFC's support in overcoming the current economic crises and propelling the growth of SMEs, the FNCCI said in a statement.

The discussions encompassed essential areas such as providing access to finance, hydropower and infrastructure development, and investment promotion, among others.

President Dhakal also acknowledged that the nation encountered economic hurdles due to the lack of adequate management following the COVID-19 pandemic, impacting both the private sector and the public, who have borne the brunt of the economic slowdown.

Lund expressed her admiration for FNCCI's recent initiatives, such as the launch of a report highlighting the significant contributions of the private sector to Nepal's economy, as well as the successful organisation of a small and medium enterprise conference.

According to the statement, she lauded FNCCI's efforts in equipping SMEs with necessary skills to thrive in the competitive market landscape.

Acknowledging the crucial role of conducive business environment, both FNCCI and IFC remain determined to work hand in hand to foster an atmosphere where businesses can flourish, leading to sustainable economic growth and prosperity for all, read the statement.

Lund is on a three-day visit to Nepal to renew IFC's commitment to support private sector to help meet country’s development goals while discussing investment opportunities.

During her visit, she is scheduled to meet senior government officials and private sector leaders, IFC Nepal office informed the other day.

Nepal is a priority country for IFC, and its first investment dates back to 1975. Since July 2018, IFC has committed over USD 560 million in long-term financing in the country.

Based in Washington DC, Lund leads a large staff of economists who provide economic analysis to support IFC investments, including macroeconomic outlooks, country risk assessments, and country private sector diagnostics.

Published in The Rising Nepal daily on 2 August 2023.