On 26 July 2023, the United States Department of State released its ‘2023 Investment Climate Statements’. Its statement on Nepal highlights political instability, widespread corruption, complex law/guidelines on immigration, bureaucratic inefficiency, unequal law enforcement, trade unions and tax administration to be the major barriers to investment. And, these factors the US government concludes—are discouraging foreign investment in Nepal.
The United States is one of the top ten countries investing in Nepal. Therefore, this critique raises deeply troubling questions: If the US—a country with a 76-year-old diplomatic tie with Nepal; one of the largest bilateral donors; the country that can make an immediate impact at the mention of its name—holds such reservations about investing in Nepal, then what might be the situation for investors from other countries? What message would such reports and conclusions convey and how will they shape international investors’ perception of Nepal?
In the context of the public release of this US report, let me share with you a story of one such FDI that was prevented from entering Nepal despite relentless efforts. This is a story that unfolds over nearly seven years, wherein the investor finds themselves ensnared in the web of political instability, selfish and corrupt political leaders and bureaucracy, and self-serving and greedy ‘industrialists’, only to finally be forced to return. This is the story of Aliko Dangote of Dangote Group, an industrialist from Nigeria, the largest economy of the African continent. Dangote Group established its business empire in Africa by venturing into large-scale industries of cement, chemical fertilizers, sugar and flour. In 2012, Dangote Group set their sights on a global presence. Dangote, which came to fame in Africa with the cement industry, decided to begin its foray into foreign markets with the cement itself. For this, discussions were initiated
about Nepal, India, Iraq, Myanmar, Indonesia, Vietnam, Brazil, and Chile. Due to the strategic location between the large economies of India and China, and Nepal’s almost
