Japan International Cooperation Agency (JICA) is set to invest Rs 1.32 billion (US$10 million) in the private equity investment fund Dolma Impact Fund (DIF). The investment will aid the growth of health, ICT, and job creation in Nepal
Dolma Impact Fund is promoted by Dolma Fund Management (DMF). JICA has signed the agreement deal recently which is its largest investment in Nepal so far.
The billion rupees investment will be invested in companies concerning health, ICT, and renewable energy in Nepal.
JICA made the investment in co-financing with the Netherlands Entrepreneurship Development Bank, UK Government Development Bank, Sweden Government Development Financial Institution, US Government Development Finance Commission, and World Bank’s IFF.
After the agreement, Dolma Impact Fund’s total fund reached $71.96 million dollars. The investment should play its role to lift some of Nepal’s industry from its stagnant state.
JICA to support various projects in Nepal
It is JICA’s first investment in Nepal’s private sector. It has also committed to supporting Nepal by creating a synergy between existing projects and investments in DIF. the DFM is set to mobilize $1.805 dollars in capital through the DIF.
So far, it has committed to the investment in 4 renewable energy, 3 health services, and 6 ICT-related companies. In return, it has benefitted 9452 people from direct employment and also reduce greenhouse emissions by 369,996 tons per year.
The 2015 great earthquake followed by the embargo by India took a toll on Nepal’s economy. Gradually, the condition has been improving but still, the country faces an uphill challenge to pull through the category of an underdeveloped category to a developing country.
The issue of migrant workers remains wide as the lack of industries and opportunities continues to hurt Nepali workers. It has culminated in the gradual decrease in the number of efficient manpower within the country.
Therefore, further investments in health, IT, and infrastructure are the key to promoting growth. Hydropower is another potential sector of Nepal that is itself booming at the moment as Nepal started raking in billions by importing power to India.
Helping with industrial development and job creation
DFM manages funds that help with industrial development, the creation of jobs, etc. DIF has already been investing in energy projects, ICT, and health sectors in Nepal.
Likewise, the company has been instrumental in Nepal’s capital market. Its investment has been helping to realize sustainable development goals, gender equality, affordable energy, etc.
Similarly, JICA has also been supporting Nepal’s industrial development and improving the environment for investment in various projects.