eSewa, UK Aid Sakchyam agree to work jointly

Kathmandu, Aug 14

eSewa Fonepay Pvt. Ltd signed an official agreement with UK Aid Sakchyam - Access to Finance Programme for a partnership to design, develop and launch Cash Points – digital channels of financial service.

Subhas Sapkota, Chief Executive Officer, eSewa Fonepay and Nirmal Dahal, Team Leader of UK Aid Sakchyam signed the agreement on behalf of their respective organisations.

The Cash Points established under the partnership will provide financial services to the rural consumers through digital channels.

"The objectives of this project are to expand access to financial services and promote greater use of innovative digital financial services among populations who have none or inadequate access to full-fledged financial services," said Sapkota.

He said that the company would establish eSewa Cash Point platform which could provide efficient financial solutions to unserved and underserved customer segments in rural areas and provide a convenient digital financial service that can overcome high transaction costs and increase financial penetration rates.

Dahal said that Sakchyam was supporting the bank and financial institutions and microfinance institutions in enhancing access to finance and technology transfer.

Sakchyam Access to Finance is an UK Aid-funded programme being implemented by Louis Berger for DFID Nepal, in partnership with local and international institutions.

eSewa is Nepal's first payment gateway company having a network of over 2 million customers, 55,000 agents, 54 banks and 30,000 merchants and is licensed by Nepal Rastra Bank as a Payment Service Provider (PSP).

Published in The Rising Nepal daily on 15 August 2019. 

Finnish co-creation platform on education enters in Nepal

Kathmandu, Aug 14:

Demola, a Finland-based global innovation challenge platform, has entered Nepal through a partnership with King’s College.

A formal ceremony was organised in  the Capital to mark the launch of the platform in Nepal.

Annapurna Media Network, Young Innovations, City Planning Commission of Kathmandu Metropolitan City, Katha Nepal and M&S Next Venture Corp signed the agreement to join Demola as the Challenge Partners. 

“We see Demola as a tool capable of stitching an existing gap between Nepali education institutions and companies as well as government and non-government organisations," Narottam Aryal, President of King’s College, said.

“Being a globally recognised Finnish co-creation platform, we expect Demola’s concept to nudge forward the culture of joint problem-solving in Nepal”.

 Demola facilitates eight-week long projects where students and company experts work jointly on an innovation challenge, as set by the company as well as organisations. The collaboration will take place from problem identification phase to solution development phase.

According to the college, there are two additional elements to the Demola Project: Demola Facilitators and Universities.

While Demola Facilitators will bring about the global knowledge and insights in solving a particular problem of a company or helping in advance with the introduction of innovation; the University will try to apply the tested and proven academic theories, to help Nepali businesses and organisations reach further heights. 

Kati Bhose, Head of Cooperation, Counselor at the Finnish Embassy in Nepal, stressed on education-based research for solving modern time problems especially those faced by the industrial world. “The new changes that are surfacing in the world has not only been impacting the industries but the entire social environment,” she said, “To solve such problems , it takes a new set of thinking which is only possible by the collaboration between the universities and the industrial sector.”

Pekka Silvén, Vice President of Demola Global, said that the agreement provided ways to strengthen international networks and bring co-creation tools to Nepali companies and society.

Demola innovation challenges have already brought together over 50 universities, 750,000 students and the leading companies from around the world.

Published in The Rising Nepal daily on 15 August 2019.  

Tea export can grow triple-fold in three years

UdayaChapagain

Nepali tea is facing challenges at both the national and international fronts. The recently implemented Labour Act, non-tariff barriers at Nepal-India border while exporting the products to India and the third countries and Indian traders lobbying against Nepali tea are proving to be the Sword of Damocles which might fall anytime and damage the business of the Nepali tea traders.

Nepal produces about 22 million kg tea every year. It exported about 15.04 million kilos Tea worth Rs. 3.20 billion in 2018/19. The 80 per cent of total productionis sold in the Indian market while most of the organic tea produced in the hills goes to the European countries and other third country markets. About 300,000 kilos of organic tea is produced in Nepal.

Indian lobby and obstacles at the customs is the recent phenomenon. On the one hand, Darjeeling Tea Association (DTA) and Tea Board of India (TBI) are lobbying to persuade the central government that the tea from Nepal is substandard. On the other hand, the largest importer might impose non-tariff barriers like delaying the lab test of the tea and product clearance which will increase the cost of Nepali products and make them less competitive in the international markets.

It might come as a surprise to many that Nepal's tea business with the immediate neighbour is functioning on the generosity of the latter, and its not rule-based. It is also not reciprocal. India pressurises Nepal's government to bring its vegetables and fruits to local markets here but does not facilitates Nepal's export of tea and other agricultural goods. It seems that tea producers in Darjeeling want to maintain their monopoly in the Indian market and they are afraid of the growing demand of Nepali tea there.

At the same time, the government is indifferent towards the plight of tea producers and has terminated the subsidies on chemical fertilizers and other agricultural inputs needed for the tea producers. It has increased the production cost of tea. Paddy farmers are enjoying about 67 per cent subsidy on chemical fertilizers but the same is not applied for the tea entrepreneurs. This is injustice. The government has failed to import sufficient fertilizers required for all farmers.

Likewise, the Labour Act 2075 has created multiple challenges as the tea entrepreneurs have a large number of part time workers while the plucking is stopped for about five months a year. A task force led by the Labour Secretary Mahesh Dahal has presented some recommendations to resolve the issue but they are yet to be implemented.

The tea farmers and entrepreneurs have asked the government to allow them to change the objectives of the land so that they can adopt farming of other cash crops like rubber plants.

Similarly, they need concessional agricultural loan and support in the organic certification of the tea. The government should also support the business in digital marketing and promoting Nepali tea in the international markets through Nepali missions and consulates. Facility visits of foreign traders should also be organised routinely. If all these could be implemented, the size of tea export from Nepal could reach Rs. 10 billion in the next three years.

Nepal should learn from Vietnam and Sri Lanka where the government has backed the tea producers with subsidised loans, cash incentives on export and marketing. The best example that the government support can help in booming the industry is the Uttaranchal of India. With the growing incentives and facilities of the provincial government, Uttaranchal had surpassed Darjeeling in tea production.

Chapagain is Past President of Himalayan Orthodox Tea Producers Association (HOTPA).

Published in The Rising Nepal daily on 15 August 2019. 

MFIs should go to the poor: Aryal

Kathmandu, Aug 13

Minister of Land Management, Cooperatives and Poverty Alleviation Padma Kumari Aryal said on Tuesday that the Microfinance Institutions (MFIs) in the country had the responsibility to go to the poor people and help them get out of poverty.

"The MFIs and cooperatives should mobilise funds to the deprived communities," she said while speaking at the 28^th Anniversary Function of the Centre for Self-Help Development (CSD).

She said that the microfinance sector of Nepal was facing multiple problems and it was necessary to resolve them in coordination with respective stakeholders.

Referring to the recently introduced interest rate cap for the cooperatives she said that it might not be necessary to reduce the interest rate in the areas where there is no economic development.

"However, a dialogue is needed to sort out this problem,” she said.

Chairman of CSD Shankar Man Shrestha said that the organisation initiated its activities from Jumla and Kalikot, some of the remotest regions in the country.

“CSD facilitated the locals in cultivating vegetables, constructing toilets and saving their income," he said.

Meanwhile, Second Micro entrepreneurship Development Prize for 2018/19 was awarded to Manushi Laghubitta Bittiya Sanstha Ltd. of Kavrepalanchok district. The prize carries a purse of  Rs. 100,000  and certificate. Chairperson of Manushi Padmasana Shakya expressed her delight on winning the award and expressed her commitment to serve the deprived communities. 

Published in The Rising Nepal daily on 14 August 2019. 

Lobby might hit Nepal's tea export

Kathmandu, Aug 12

Nepal exports about 80 per cent of its tea to the Indian market, specially to Siliguri. But Indian entrepreneurs are trying to label Nepal tea as substandard.

"Darjeeling Tea Association (DTA) and Tea Board India (TBI) are lobbing to persuade the government that the tea from Nepal is substandard," said Udaya Chapagain, past President of the Himalayan Orthodox Tea Producers Association (HOTPA), and a tea entrepreneur for the last three decades.

The tea export to India, like other agricultural products, is functioning on the generosity of India, its not rule-based, said Chapagain.

Tea entrepreneurs of the eastern hills fearing that the largest importer might impose Non-Tariff Barriers (NTBs) like delaying the testing of the tea at the Central Food Lab (CFL) India which will increase the cost of trade as the producers and traders have to pay additional detention charges in case the containers were hold the border.

According to Chapagain, Indian entrepreneurs and Tea Board are for maintaining the monopoly of the Darjeeling Tea in the domestic as well in the international market.

National Tea and Coffee Development Board (NTCDB) is also aware about the situation. "We have received the information about their concern to the growing market of Nepali tea in India. However, it would be immature to say that there would be any sort of embargo on the export," said Acting Executive Director of the NTCDB Deepak Khanal.

During the strikes in Darjeeling a couple of years ago, Nepali tea was one of the most sought-after goods in India even in the hills of Darjeeling. Since the industries in Darjeeling were not producing tea, traders themselves had come to Nepali producers to buy the product.

Khanal also suspects delayed CFL tests and detention of the container trucks to India and third countries if the DTA and TBI got success in persuading the government against Nepali tea.

"But the quality of Nepali tea is one of our major strength, and all the tea traders in India are not against our products. At the same time, we can try to send our products to new markets as well," he said.

Concentrated export market is a major challenge for Nepali tea. Though there were efforts to find newer markets in Europe, Americas and Gulf countries, the country has failed to implement a common trademark 'Nepal Tea' despite multiple year's effort.

Entrepreneurs have blamed the high politicisation of the common trademark which is fulfilling the interest of traders who have nothing to do with the promotion of Nepali products in the international markets.

Published in The Rising Nepal daily on 13 August 2019. 

KU introduces Public Policy course in MA

Kathmandu, Aug. 12

The Kathmandu University School of Management (KUSOM) has launched Masters' in Public Policy and Management (MPPM) as a full-fledged academic degree on public policy for the first time in the country.

According to KUSOM, the degree is an innovative academic and professional programme that deals with the wide range of public policy and public affairs to broaden the public policy perspectives and sharpen the management skills of the public sector.

The course aims at developing the skills of public policy formulation, implementation and timely up gradating in both the government and private sectors, said Professor Dr. Bijaya KC, Dean of KUSOM.

"Traditional courses on public policy and management have failed to develop required skills in the profession so we have included sector specific subjects like federalism and local government, hydropower and transportation in the course," said KC.

Dr. Bishnu Dev Pant, Executive Director of the IIDS - an institution under the KU, said that the course was designed after rigorous discussion with the concerned stakeholders and experts.

Dr. Achyut Wagle, Professor at KUSOM, said that Nepal has failed in the effective implementation of public policies. "Therefore, there is a need for such programme to develop basic theoretical skills in the young professionals. It will help develop and enhance the kills of policy development, implementation and revision."

Admission for the course has started. The four-semester course costs Rs. 350,000 and scholarships are available for five deserving students.

Any individual having minimum of 3-year Bachelor degree in any discipline with cumulative grade point average of 2.0 or 45 per cent marks in aggregate is eligible for the course.

The course is focused in five areas: social policy and justice, federalism and local government, development policy, energy and hydropower policy, and transport and infrastructure policy.

Published in The Rising Nepal daily on 13 August 2019.  

BBIN MVA to take partial effect by mid-2020

Kathmandu, Aug 11

The Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement (MVA) is likely to come into partial implementation by mid-2020.

At least three members of the South Asia sub-regional grouping will be ready for the vehicular movement among them with an aim of enhancing regional economic integration through transport and transit facilitation.

"On a very optimistic scenario, the MVA will partially implemented in Bangladesh, India and Nepal half-way around the next year," said Ronald Antonio Q. Butiong, Director of Regional Cooperation and Operations Coordination Division, South Asia Department at the Asian Development Bank.

He talked to The Rising Nepal at the side line of the BBIN-MVA interaction organised by the South Asia Watch on Trade Economics and Environment (SAWTEE).

Butiong'sstatement is relative to the upcoming meeting of the South Asia Sub-regional Economic Cooperation (SASEC)'s finance ministers in March 2020 which will deliberate upon the proposal to sign a Memorandum of Understanding (MoU) on operating vehicular services in the three countries.

The SASEC will present the proposal for the piloting of the vehicular movement in the three members of the BBIN at the first-ever SASEC finance ministers' meeting. "Signing of the instrument will open door to operationalise the MVA. However, we are not sure whether the finance ministers would sign both the protocols on Passenger Transport and Cargo Transport or any one of them," said Butiong.

With an aim of enhancing regional economic integration through improving connectivity, Bangladesh, Bhutan, India and Nepal (BBIN) in 2015 had signed the MVA as a frame agreement for the regulation of passenger and cargo vehicular movement among the four countries.

However, Bhutan failed to ratify the MVA which prevented the agreement's entry into force which delayed its implementation, and the remaining three countries are negotiating the agreement.

Although trade experts and diplomats said that Bhutan was apprehensive of the negative impact of the increased vehicular movement on the environment and potential threat to its tiny trade, SASEC has maintained that the small Himalayan nation had not ratified the agreement but has not withdrawn from it.

"There are chances of Bhutan joining the agreement later. But we can't say about the position of the country. We are facilitators and we don't take sides," said Butiong.

Former Joint-Secretary of the Ministry of Industry, Commerce and Supplies (MoICS) Rabi Shankar Sainju said that the MoU would open ways for the piloting of the agreement which was necessary to find out the weaknesses in the agreement and make it a perfect one.

He suggested the Nepali private sector not to be apprehensive of the sub-regional integration but to develop capacity to compete with the regional and global players in the transportation and cargo sector.

"Nepali investors must start logistics business as it has a huge potential to grow in the near future," he said.

However, private sector businesspersons said that Nepali companies might not compete with the Indian and Bangladeshi companies since the cost of logistics and equipment is higher in Nepal.

"When we are paying double cost for the trucks, containers and other machines, how can we compete with other regional transport entrepreneurs?" Naresh Agrawal, of Nepal Freight Forwarders Association (NEFFA), said at the interaction.

Prof.Dr.Puspa Raj Kandel, Vice-Chairman of the National Planning Commission (NPC), urged the government to hold intensive discussion with the private sector about the MVA and expressed his readiness to coordinate among the inter-government agencies.

 Published in The Rising Nepal daily on 12 August 2019.