Old businesses reap profits, new multinationals struggle to enter Nepal
Summary
Large-scale foreign investors like Dangote Group have struggled to establish businesses in Nepal due to regulatory hurdles and local lobbying, while established multinationals like Surya Nepal and Unilever Nepal continue to profit. Challenges such as bureaucratic delays, land ownership limits, and political instability hinder new foreign investments.
Key Points
- Nigerian billionaire Aliko Dangote's company failed to establish a cement industry in Nepal due to lack of mine access and local industrial lobbying.
- Nepal's Karnali–Chisapani hydropower project has been stalled for 65 years due to geopolitical issues and lack of cooperation.
- Established multinational companies like Surya Nepal and Unilever Nepal are performing well and paying high dividends and taxes.
- Regulatory complexities, unstable tax policies, land ownership restrictions, and political instability discourage new multinational investments in Nepal.
