Support for growth

Denmark has been engaged in Nepal for many years and we remain a close partner both within the areas of renewable energy and peace, rights and governance and business partnerships. Now, we are looking to take our engagement to a new level and focus on supporting inclusive green growth in Nepal. This will happen through our new Inclusive Growth Programme called ‘UNNATI’ with a budget of 400 million DKK, approximately 70 million USD.

Through UNNATI, we aim to strengthen market-based growth and focus on reducing poverty and improving living standards.

Still, to this day, the isolated and disadvantaged nature of rural economy in Nepal is generally characterised by subsistence agriculture, poor infrastructure, traditional farming practices, shortage of skilled and unskilled labour force, lack of access to finance, and lack of access to energy.

What we want is to strengthen the value chain of ginger, dairy and orthodox tea in the Eastern Region of Nepal—from seed to consumer. The reason we have chosen the Eastern Region is because we believe that there is an untapped potential for market-based growth.

In the words of one farmer, “we are small farmers with big dreams”. This is the kind of vision we want to support.

Farmers, roads and markets

We also want to support the smallholder farmers to improve and add value to their products including by ensuring better access to finance and technology. We also want to support local governments to improve infrastructure along the value chains making it easier and cheaper for farmers to get their products to relevant markets. And we want to strengthen  forums where the private sector representing farmers and other businesses can enter into a dialogue with the public sector and to pave the way for  an enabling environment that is both conducive for increased investments and focused on corporate social responsibility. In addition, we want to ensure that the rights of all groups of society regardless of their gender, religion or ethnicity are taken into account and respected.

Our vision is that, through the programme, the smallholder farmers will be able to sell more, earn more and thereby increase their living standards significantly. We want to see high value Nepali products better packaged, branded and sold at a higher price locally, regionally and globally.

We also hope to develop more diversified products resulting from the value chains—in the form of flavoured tea, high quality cheese, and ginger candies.

Creating of jobs

Through our activities, we hope to develop quality employment in these sectors and to secure job opportunities for the many thousand young people who right now see no other option than to leave Nepal in order to find work. Through the public-private dialogue, we want to strengthen the policy framework in support of private sector development and inclusive growth for the benefit of the people of Nepal.

To do so, partnerships are essential—both along the value chains and in the implementation and development of the programme.

It is, therefore, particularly pleasing that UNNATI is the result of close cooperation with many national partners, both public and private, such as the Ministry of Agriculture Development, Ministry of Federal Affairs and Local Development, Ministry of Industry, Nepal Rastra Bank, Nepal Business Forum and private sector organisations. It is an outcome of a true and genuine partnership.

Together with the public sector at national, regional and district level, the private sector, other development partners, civil society and local communities, Denmark will work hard at making this programme a success for the tea, ginger, and dairy farmers and enterprises of Eastern Nepal. It is my sincere hope that, five years from now, with increased political stability in the country, we will be looking at a growing economy that is both inclusive and green to the benefit of all women, men and children of Nepal.

Geelan is the Danish Ambassador to Nepal