Nepal Investment Proposal

 

 

Nepal Investment Plans and Opportunities
HiH Investment Forum 2024

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The Proposal

The Hand-in-Hand Initiative is supporting the Government of Nepal in its efforts to transform agri-food systems, by enhancing food and nutrition security, promoting sustainability, bolster resilience, and fostering rural development.

With 28% of arable land contributing 24% to the GDP, and the agriculture sector accounting for 62% of employment, investments in the sector aim to empower communities for dignified and decent jobs with access to healthy diet for all. This, while mitigating carbon emissions, promoting adaptation, ensuring environmental sustainability and preserving biodiversity. 

The Government of Nepal has prioritized four commodities to accelerate agricultural transformation and sustainable rural development resulting in minimizing poverty and contributing to GDP: Large cardamom, Timur, Highland potato, Pangasius fish. 

Total Investment 
22.9 Million USD
IRR Value
25.54%
NPV Value
48.8 Million USD
Direct  Beneficiaries
18,000
Indirect Beneficiaries
99,000
Total Beneficiaries
117,000
Per capita income increase
263.14 USD/year
ExACT TOOL
-416,798 tCO2-e (20 yrs)

 

Total Investment 
31.6 Million USD
IRR Value
31.7%
NPV Value
35.4 Million USD
Direct  Beneficiaries
25,000
Indirect Beneficiaries
137,500
Total Beneficiaries
162,500
Per capita income increase
119.7 USD/year
ExACT TOOL
-176,929.5 tCO2-e (20 yrs)

 

Total Investment 
8.4 Million USD
IRR Value
37.27%
NPV Value
10.57 Million USD
Direct  Beneficiaries
6,720
Indirect Beneficiaries
36,960
Total Beneficiaries
43,680
Per capita income increase
486 USD/year
ExACT TOOL
-4,822.22 tCO2-e (≥ 20 yrs)

 

Total Investment 
12.16 Million USD
IRR Value
19.09%
NPV Value
30.89 Million USD
Direct  Beneficiaries
750
Indirect Beneficiaries
4,125
Total Beneficiaries
4,875
Per capita income increase
2,781.56 USD/year
ExACT TOOL
-92,277 tCO2-e (≥ 20 yrs)

 

 


Nepal Typologies

Poverty

Potential

Efficiency

Poverty
Potential
Efficiency
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Agro-informatics connects information technology with the management, analysis and application of agricultural data to design more accurate and targeted agricultural interventions. The use of new technologies and techniques in agriculture, such as satellite imagery, remote sensing, and geographic information systems, enable the transformation of data into actionable information.

 


Government of Nepal: Investment cases in Nepal

 


Nepal Investment Cases and Interventions

 

 

Large Cardamom 

22.9 Million USD

117,000 Beneficiaries

Large Cardamom

Grown in eastern hills, cardamom is an important non-perishable cash crop, with an annual production of around 8,000 metric tons. About 80% of this is exported to India, being the largest export commodity of Nepal. Given this, there are opportunities for investments to grow the crop on the hill areas in 14 target districts, as there are suitable agroclimatic conditions for its production, there is high potential market demand for pharmaceutical uses, as well as export potential. Investments are focused on value addition through processing into oil, oleoresin, powder, and drying and storage facilities. 

The required investment is of 22.9 million USD, with an Internal Rate of Return (IRR) of 25.54%, benefiting directly 18,000 households, while creating employment for more than one million producers, mostly women. 

 

Timur (Sichuan Pepper) 

31.6 Million USD

162,500 Beneficiaries

Timur (Sichuan Pepper)

Nepal exports most of Timur pepper it produces annually, as demand from Europe (for Timur oil) and India run high. Currently, more than 20,000 farm holdings, as well as poorer populations, especially women, children and the unemployed, are involved in collecting the Timur fruit, while grazing cattle. Some farmers have already started planting it to rehabilitate degraded forest lands.

Investments target 4 districts for value addition (oil, powder), market diversification, and export enterprise, area expansion, improving post-harvest technologies and marketing, tissue culture, screen and net house facilities to produce quality planting material, and establishment of drying and storage facilities. 

The required investment is of 31.6 million USD, with an Internal Rate of Return (IRR) of 31.7%, benefiting directly 25,000 households. 

 

Highland Potato

8.4 Million USD

43,680 Beneficiaries

Highland Potato

Nepal has a national production of more than 3.3 million metric tons of potato, with more than 40% of the national farmers growing them. National potato consumption is around 90.2kg per capita and demand is fast growing. The country also imports large amount of potato and their by-products every year. Potato is more productive than rice and maize in the cool climate and yield gaps are currently high. 

As such, there are opportunities for import substitution from India and value addition such as chips, wine and fries, as well as export potential to neighboring countries such as India and Bangladesh.

Investments are focused on reducing post-harvest loss and value addition by installation of storage and processing facilities in 4 target districts, requiring an investment of 8.37 million USD, with an IRR of 37.27% and benefiting 6,720 households. 

 

Pangasius Fish

12.16 Million USD

4,875 Beneficiaries

Pangasius Fish

With a 3.11 kg per capita consumption of fish, around 60% of national demand is imported. Therefore, an opportunity for import substation is being prioritized with investments focusing on technological adoption, infrastructure development and market expansion. Also, there are interventions for developing of feed industry and safeguarding food solutions from pond to plate. 

The required investment is of 12.16 million USD, with an Internal Rate of Return (IRR) of 19.09%, benefiting directly 750 households. 

 


 

 

Republic of Korea: Hand-in-hand from strength to strength

Nepal and four other countries in the Asia-Pacific region presented their prioritized agrifood investment proposals at a forum held in June in the Republic of Korea, ahead of the HIH - IF 2024 planned from 15-17 October at headquarters.  Read more...

  
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Contact

For more information, please contact the Hand-in-Hand team.