Saturday, February 10, 2024

FNCCI, CNI to collaborate with BVMW to attract investment from Germany

Kathmandu, Feb. 8

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI) signed separate Memorandums of Understanding (MoUs) with the German Association for Small and Medium-Sized Businesses (BVMW) on Wednesday to explore the possibility of German companies investing in Nepal or collaborating with Nepali businesses.

The MOUs were signed by FNCCI President Chandra Prasad Dhakal, President of CNI, Rajesh Kumar Agrawal and Christoph Ahlhaus, Executive Chairman of BVMW, on behalf of their respective organizations.

The MOU signing ceremony was held at the Embassy of Germany in Kathmandu in the presence of German Ambassador to Nepal, Dr. Thomas Prinz.

Dhakal said that there needs to be collaboration between FNCCI and BVMW to promote trade relations between Nepal and Germany. He added that both the organisations need to explore ways to increase exports from Nepal to Germany because Germany has been a trusted export destination for Nepal for many decades, according to a statement issued by the FNCCI.

He also mentioned that SMEs will be affected by Nepal's graduation to a developing country status the most as Nepal will lose the facility of duty-free access for exports to Europe. He stressed that SMEs, particularly run by women, need to be supported. He added FNCCI and BVMW should collaborate for the promotion and development of SMEs.

Likewise, CNI informed that Agrawal underscored the potential of the MoU to strengthen ties between the SME sector of Nepal and Germany. He highlighted the promise it holds for Nepal's SMEs, envisioning a future where collaboration between Nepali and German SMEs leads to mutual growth and prosperity.

Ambassador Prinz expressed his optimism about the pivotal role the MoUs will play in facilitating the exchange of business opportunities and investments, particularly in sectors such as AI and IT. He emphasized the significance of this partnership in transcending borders and fostering cooperation between SMEs of both nations.

Shubhashish Thapaliya, Nepal's representative for BVMW, said that the MoU aims to enhance trade relations, attract investments, and explore avenues for joint ventures beneficial to both nations.

The major objectives of the MOU are to enhance cooperation between FNCCI and CNI and BVMW and establish a practical framework to cooperate in investment promotion. The MOU also speaks about strengthening institutional relations and capacity building through mutual cooperation.

As per the MOU, both FNCCI and BVMW will have a regular exchange of information on investment policies, rules, regulations, procedures, incentives and opportunities. There will also be an exchange of general updates on statistics and data related to Nepal and Germany with a view to making them accessible to both organizations. 

 Published in The Rising Nepal daily on 9 February 2024.      

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