By Sudeshna Sarkar, IANS,
Kathmandu : Despite continued political instability in Nepal and the largest party in the ruling alliance still tagged a terrorist organisation by the US State Department, Washington is now encouraging American investors to set up shop in the nascent republic.
After a long hiatus of 13 years, which included a decade-old Maoist insurgency when US companies in Nepal were on the hit-list of the guerrillas, a delegation from the American Chamber of Commerce in India (ACCI) arrived in Kathmandu on a three-day visit to explore investment and trade opportunities in Nepal, encouraged by the recently signed US-Nepal Trade and Investment Framework Agreement.
“People have to look at Nepal not through the lenses of the conflict,” said Scott DeLisi, the American ambassador to Nepal. “There are opportunities here and we want to build on them. Now is the time.”
The nine-member delegation, including representatives from Coca-Cola India, Johnson & Johnson, GE Healthcare and Bell Helicopter, winds up its visit Wednesday after meeting Prime Minister Jhala Nath Khanal, Maoist chief Pushpa Kamal Dahal Prachanda and his two deputies, as well as other prominent politicians.
The Maoists, the largest party in the government, remain perhaps the key consideration for American investors, especially after repeated incidents of their cadres obstructing industries.
“The Maoist leadership has assured us that they want foreign investment,” said Aniruddha Lahiri, ACCI vice-chairman and the man who set up Nepal Lever, Hindustan Lever’s subsidiary in Nepal, in 1994.
“But we want more than mere words. We want them to walk the talk. Nepal is an investment destination and we want to participate in its economic growth. But we have to ensure that there are business cases and that it makes sense for our companies to come here.”
The delegation as well as the American Embassy in Kathmandu are in dialogue with the government, asking for investment-friendly policies.
The American government is recommending investment in healthcare, agriculture, food supply chains, IT, aviation, infrastructure, tourism, telecom and hydropower. It is especially keen on agriculture, Nepal being an agro-based economy and the US Agency for International Development already running a Nepal Economic Agriculture and Trade programme.
Rather than domestic consumption, American companies would seek to tap Nepal’s huge neighbouring markets of India and China. Nepal could become a very economic sourcing point for high-value, low volume goods, Lahiri said. It could also be the location for global or regional supply chains.
Though ACCI and the US Embassy have been monitoring the travails of Indian company GMR, that recently had its office and site camps in western Nepal burnt down by the Maoists, they however say the attack, though “unfortunate”, was an “isolated incident”.
The American ambassador said he was assured by the Maoist leadership that the GMR attack did not reflect the policy of the party.
“There are challenges but I also see companies that are making money and doing well,” DeLisi said. “The picture is a promising one. This is an opportune time. That is why we talked to the Peace Corps.”
The Peace Corps volunteers were pulled out of Nepal seven years ago during the Maoist insurgency, following the murder of a security guard at the American Embassy and a minor blast near the American Center.
For interested American investors, a decisive date will be Aug 28, when Nepal is scheduled to promulgate its new constitution and wrap up the peace process.
“We are keeping Aug 28 on our radar screen,” Lahiri said.
(Sudeshna Sarkar can be contacted at [email protected])