Japan International Cooperation Agency (JICA), on Tuesday, signed a $10 million investment agreement with Dolma Impact Fund II, focusing investments in renewable energy, technology and healthcare in Nepal.

The fund also contributes to gender equality and fulfills the criteria in the “2X Challenge: Financing for Women”, an initiative adopted by the G7 development finance institutions, including JICA, on the occasion of the G7 Leaders' Summit in June 2018.

According to Dolma Impact Fund, the project will contribute to sustainable development goals—Goal 5 [Gender equality], Goal 7 [Affordable and clean energy], and Goal 8 [Decent work and economic growth].

Tim Gocher, CEO of Dolma Impact Fund, while addressing an event in Kathmandu through the virtual medium, said Nepal would see a huge increase in foreign direct investments in the coming future that would create more jobs, prosperity and stronger industrial development.

The Dolma Impact Fund has $100 million under management and has invested in 12 companies across energy, healthcare and technology.

“Nepal needs more aid in hospitals, trained doctors and nurses and medicines manufactured domestically, so that the country can support itself in a future crisis,” Gocher said.

“We are further investing in renewable energy apart from the existing 46.5 megawatt project, with JICA. We just do not promote and build renewable energy, we promote the capital markets too, so that more investors come into the sector, Gocher added.

The Fund has invested in companies like CloudFactory, Fusemachines, Sastodeal, Upaya City Cargo, and Foodmandu.

About 15,000 employees have been created in companies that the Fund has invested in, said Gocher.

Jin Wakabayashi, senior deputy director-general of the Private Sector Partnership and Finance Department of JICA, said: “This is our first partnership with an investment partner in Nepal. Dolma Impact Fund is a leading private equity fund and we are excited to partner with such a fund and contribute to the development of Nepal.”

JICA has been supporting the Investment Board of Nepal to strengthen sources for investments, he said. JICA has also been in technical cooperation for hydropower projects.

Recently, JICA has started a new technical cooperation project to support entrepreneurs in Nepal, said Wakabayashi.

JICA's investment will be mainly utilised for equity investment in healthcare companies, IT and digital companies, and renewable energy projects in Nepal.

JICA’s investment is part of the final close of Dolma Impact Fund II, which brings the fund corpus to $71.96 million.

“Nepal is facing the challenge of a hollowing out of industry caused by the increased number of migrant workers, which, in turn, is due to a lack of promising domestic industries and job opportunities in Nepal. Therefore, the fosterage of promising industries such as healthcare and the IT and digital sector is urgently needed in Nepal,” said a press statement issued by the Dolma Impact Fund.

Dolma Fund Management contributes to the development of the stock market and the private equity fund market in Nepal.