KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has announced a renewed focus on promoting youth, women, and small and medium enterprises (SMEs) as part of its ongoing efforts to support the country’s economic growth. Speaking at a press briefing on Tuesday evening, FNCCI President Chandra Prasad Dhakal revealed that the long-awaited ‘Startup Policy’ has been approved, marking a significant milestone for aspiring entrepreneurs in Nepal.
President Dhakal highlighted FNCCI’s continued dedication to fostering the startup ecosystem, noting that the federation has been organizing the “Startup Nation” program for the past three years to advocate for and promote entrepreneurship. As part of this initiative, FNCCI plans to establish an “Incubation Center” in Kailali in collaboration with the provincial government. This center will provide vital support to budding entrepreneurs, offering them resources, mentorship, and a platform to grow their businesses.
In addition to the startup initiatives, President Dhakal announced the forthcoming establishment of an “SME Development Center” within FNCCI, specifically aimed at supporting small and medium-sized enterprises. “We are in the final stages of preparation to ensure the effective operation of this center, which will play a crucial role in empowering SMEs across the country,” Dhakal said.
New Mediation Center to Resolve Business Disputes
In a move to address business-related conflicts, FNCCI has also developed a new mediation framework to facilitate the resolution of disputes within the industrial and commercial sectors. “The mediation center will contribute to resolving conflicts among entrepreneurs, ensuring a more harmonious business environment,” Dhakal explained. The center will aim to provide a structured approach to conflict resolution, reducing the need for lengthy and costly legal battles.
Opportunities for Domestic Investment
President Dhakal also emphasized the vast investment potential within Nepal, particularly in sectors such as hydropower, tourism, production, agriculture, and physical infrastructure. He noted that domestic investors are increasingly interested in deploying capital in these areas and revealed that a new company, Nepal Development Public Limited, has been registered to help facilitate this process.
This company, which is open to both FNCCI members and non-members, aims to mobilize domestic capital to implement large-scale development projects, including the construction of transmission lines. “With a minimum deposit of NPR 40 billion, this company will be able to operate significant development projects,” Dhakal said. He expressed optimism that the company would boost investor confidence in the market, even if incrementally.
“While this is not FNCCI’s company, it has been structured in a way that allows both members and non-members to invest. We expect this will increase market morale and encourage broader participation in Nepal’s development efforts,” he added.
Economic Indicators Show Improvement
Despite challenges posed by the ongoing economic recovery, President Dhakal expressed cautious optimism regarding Nepal’s economic outlook. He acknowledged that while the economy has begun to show signs of improvement, the private sector cannot afford to be complacent. “The economic indicators are gradually improving, but there is still much work to be done,” he said, calling on the private sector to remain active and engaged in contributing to the country’s economic progress.
Dhakal also addressed concerns over the role of regulatory bodies, such as the Commission for the Investigation of Abuse of Authority (CIAA), in the private sector. “It is important to clarify whether the role of oversight agencies is to regulate or simply to instill fear. If the focus is only on regulation and intimidation, it will discourage investors,” he warned.
However, he emphasized that entrepreneurs and businesses are committed to promoting clean and ethical business practices. “We are dedicated to promoting transparent and responsible business, and we must support businesses that are accountable to consumers. If there are weaknesses on our part, we must work to improve them,” Dhakal concluded.
FNCCI’s announcements signal a proactive approach to addressing the needs of entrepreneurs and investors in Nepal, particularly in light of the challenges posed by the pandemic and the country’s ongoing economic recovery. By focusing on promoting youth, women, and SMEs, and addressing critical issues such as dispute resolution and investment mobilization, FNCCI aims to play a key role in driving sustainable economic development in Nepal.