Better investments in Nepal? Co-invest with local investors!

Better investments in Nepal? Co-invest with local investors!

In recent years, Myanmar’s government has become more economically progressive and welcoming of foreign direct investment. The “Golden Land” is well positioned for economic prosperity: Myanmar shares direct land and sea connections to the large

When investors want to improve their results in Nepal, they should co-invest with local investors. That’s why the Nepal Impact Investment Community is organizing “Netherlands in Nepal: Co-Investing for Impact and Change”. The conference, being held on November 19 in Kathmandu and hosted by the Chaudhary Group, aims to build mutual trust and establish cooperation between Nepali and foreign investors.

“The aim of the conference is to understand each other’s visions, expectations and ways of working,” says Cas de Stoppelaar, Consul General of Nepal to the Netherlands. De Stoppelaar, who initiated the event, hopes to explore how Nepali investors can work together and establish cooperation with foreign investors. “In order to become truly equal partners, we need to deepen the dialogue.”

According to De Stoppelaar both foreign and Nepali investors are ready for this next step. “The days of development aid are gone. Nepal needs FDI and impact investment is the new buzz word. The growth of the Nepal Impact Investment Community shows the interest of foreign investors in Nepal. On the Nepalese side, it’s very hopeful that prominent parties like the Chaudhary Group (the largest conglomerate in Nepal), the Nepal Economic Forum (NEF) and the Confederation of Nepalese Industries (CNI) are keen on exploring co-investments.” Both the Chaudhary family and NEF-director Sujeev Shakya will speak at the event.

Willem Grimminck, director of One to Watch, is happy with De Stoppelaar’s initiative. “We are serious about investing in Nepal. We currently have 15 investments and we want to expand significantly in the upcoming years. We think that both sides can benefit enormously from improved cooperation. Nepalese investors have local knowledge, a strong network and capital. We bring global best practices and foreign capital to the table. In short, I think that we can make smarter investments that have more impact and bring higher returns when we start co-investing.”

Grimminck currently prepares five Investment Memorandum’s that he will present at the conference. “I hope to discuss these cases and hear from Nepalese investors how they look at these opportunities. In stead of talking about the theory, I want to make this a practical exercise.”

The conference is hosted by the Chaudhary Group at the Summit Hotel in Kathmandu. That hotel was established in the 70’s by Dolf Noordijk and Cas de Stoppelaar and sold in 2012 to a local business group. De Stoppelaar: “When we founded the hotel, we realized quickly that we had to take a business approach in order to succeed. The hotel had a positive effect on Nepal’s tourist industry, we created jobs for Nepali’s and we benefited from it as well. This would be called impact investment today, but back then we just thought this was the best way to go.”

Want to participate in Netherlands in Nepal: Co-Investing for Impact and Change? Please get in touch with info@onetowatch.nl

markets of China, India and Thailand and possesses a large internal market. The continued emergence of new economic opportunities despite ongoing political unrest in border areas indicates that Myanmar has tremendous room for growth and development.

At this moment of economic transition, entrepreneurs are key to turning market inefficiencies into opportunities and leading the nation into inclusive growth, but they cannot do this alone. Business expertise, technical assistance, and investments will be continuously needed to support entrepreneurs who are at the forefront of this movement.

After 3 years of on-the-ground sourcing and market scoping, One to Watch Myanmar has decided to focus on supporting innovative companies in key sectors that contribute to the nation’s socioeconomic development and growth: agriculture and solar technology.

With an abundance of virgin lands and favorable climate zones, the agriculture sector is expected to grow its current sizable contribution to 38% of GDP and over 70% of workforce employment[1]. At the same time, solar technologies and solar energy providers are crucial for the livelihood and development of the 6.5 million households that do not have access to the national grid[2].

All investments will focus on strong individual entrepreneurs in these two sectors who are eager to grow and have a commercially viable business model. Thereafter, One to Watch will build a network of experts, provide market linkages and create strategic partnerships – in both the private and development sector – around their companies.

The goal of One to Watch remains the same : to prove that generating financial returns and creating lasting social and environmental impact can go hand in hand. The One to Watch Myanmar team thanks our supporters for giving us their trust and helping us turn our plans into reality. We hope to continue to strengthen our partnerships with our mentors, investors, networkers and more. Please reach out to us if you are interested in becoming involved with our progress in Myanmar.

[1] http://www.fao.org/myanmar/fao-in-myanmar/myanmar/en/

[2] https://assets.rockefellerfoundation.org/app/uploads/20190604133012/Decentralised-Energy-Market-Assessment-in-Myanmar-Research-Report.pdf