--By Emil Kaas Rasmussen
This agreement will allow DBP to continue supporting partnerships between private companies from Denmark and Nepal, which has become a very important tool for attracting foreign investments and creating jobs in Nepal. This tool is also more relevant than ever before as every year Nepal produces an abundance of high quality goods that range from exquisite pashmina products to highly demanded organic tea among others. Having these products reach bigger market, especially in the Western world, has however so far not been an unequivocal success. Often these products are either only manufactured in Nepal and shipped to other countries for processing, or manufactured and processed in Nepal and shipped to developed countries where they do not meet the demands of consumers. There is also quite a lot of expertise, knowledge and resources involved in the production of textiles and agricultural goodsin Nepal, however the Nepali industry and its businesses often lack the necessary knowledge about demands and preferences of consumers in foreign markets. Recently, a business match-making event was organised by the Danida Business Partnership programme to address these challenges and to explore the opportunities for new business engagements between Danish and Nepali private companies. The eventincluded 12 Danish and more than 40 Nepali companies, and focused on identifying challenges and new opportunities for business cooperation. While much attention was given to the advancements needed to properly introduce the Danish companies to the many quality products of Nepal, the Danish companies were equally curious to figure out potential problems in collaborating with Nepali companies. There were many questions related to procedures and time involved when establishing private companies in Nepal, export-import regulations and duties, quality assurance and the freight costs involved when exporting goods from Nepal to the European markets. Along with that issues related to political stability and mechanisms to deal with corruption were of interest to the Danish companies. These issues were the ones that make foreign investors uneasy and often prevent Nepali products from being exported to new markets and consumers. Cultural characteristics of both sides and what they could mean in business cooperation were discussed upon. Challenges related to employment conditions, work ethics and social corporate responsibility were other concerns discussed.
The discussion addressed many of the common concerns associated with starting up production in Nepal. Along with potentials, instances of foreign investments in niche productions where the Danish technology, mind set and ability to work together with others have proven very much compatible with the skills and products available in Nepal were discussed. This unique combination received great deal of interest from Nepalis companies. Mohit Maharjan, corporate marketing manager of Sabah Nepal was among those convinced of the potential in partnerships betweenNepal and Denmark:
“Danish companies are very straight forward and business minded. This gives us the working attitude Danish companies expect from us, and we therefore do the expected accordingly. Danish companies are far more advanced in their tools and equipment, and Nepal has much skilled labour to offer - this combination could produce great results”
A number of Danish companies also expressed great interest in setting up partnerships with Nepali businesses. Owner of the Danish tea company Tante–T, Mikkel Sarbo, was among those impressed with the dedication and competence of the Nepalis:
“Nepalis seem competent and many of the manufactures are dedicated to development. Together we can deliver products that will be attractive to Danish and Western consumers,”
Even though the workforce of Nepal is increasingly capable of refining and processing their products, a lot can still be improved. It happens that corruption halts new projects in their initial stages and can make the process of implementing new technology unfavourably slow or downright impossible. New ways of thinking and approaching the production and marketing needed to boost the sale and awareness of Nepali goods is a must, if Nepal is to make economic progress. These tools are exactly what foreign companies can bring to Nepal. Experience with Western markets, innovative solutions and sustainable business ideas are the key competencies of Danish business and will be a great asset in the new Danish - Nepalis ventures. It is therefore important that Nepal does not solely rely on its vast resources but embrace these new opportunities. Partnerships with non-Nepali businesses will be an integral part of the process towards a stronger economy and reaching a broader market. Companies like Sarbo’s Tante–T will make for a strong partner in this regard. The progress Nepal has already made has encouraged Sarbo, who was very impressed with not only the tea found in Nepal but also with the possibilities of creating new jobs and opportunities:
“The demand for tea is increasing and that also includes the demand for high quality single estate teas, which can be found in large quantities in Nepal. The clean nature combined with smaller plantations where the farmers own their own land provides a good foundation for growth. Furthermore Nepal has strong branding potential as a country producing quality tea and could easily supply an increase in jobs if the tea is no longer just packaged and shipped out of Nepal but also cleaned, blended and checked for quality in Nepal.”
Sarbo’s perspective on widening the customer base for Nepali tea through branding and the possible creation of new jobs and added profit, exemplifies the impression of many of the Danish companies that participated in the event.
The opportunity for increased Nepali export when coupled with Danish expertise and technology was much talked about and the possible gains of joint ventures resulted in a great deal of individual meetings between businesses. This mutual exchange of ideas and establishing of Danish-Nepali partnerships between companies also resulted in a number of new potential partnerships. According to Aayush Rai, programme officer for the Danida Business Programme, making partners and acquaintances of Danish and Nepali businesses was a success:
“The event helped in creating a feeling amongst the Danish companies about the history and culture of Nepal and how it’s connected with the working style of the Nepali companies. All the Danish companies were very much satisfied with the Nepali companies and have shown great interest in partnering with them – which is also the primary concern of the Embassy. We foresee at least six partnerships out of this event”
Even though Nepal faces many problems and still has a considerable amount of hurdles in its way regarding foreign investments and taking resources and products to the next step there is still a vast amount of products and a committed workforce available for the progress to be made. The products found in Nepal can easily compete with the best in the world and the workforce is ready and well prepared. New investments will be able to utilize these resources and can move forward the Nepali perspectives on business. Introducing Nepali companies to new concepts will also not only improve businesses and help the establishing of a stronger economy, it will also give the younger generations of Nepal a chance to become familiar with different ways of thinking and working. Despite the issues that stand in the way of making Nepal a significant player in the global market there is still a very good chance of that very scenario becoming a fact in the near future if Nepal embraces the new opportunities at hand. With the recently signed agreement, Denmark will able to continue its support on sustainable private sector development in Nepal and work towards actualizing the programme goals of generating green economic growth, promoting better living and working conditions, and reducing poverty in Nepal.
Emil Rasmussen has a Bachelor Degree in Communication from Roskilde University. The contributor has been working as a communications assistant at The Danish Embassy in Nepal since January 2014. To know more about Danida Business Partnerships, log on to the website of the Embassy of Denmark: www.nepal.um.dk
