Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has called on South Africa to explore Nepal’s untapped investment potential, particularly in the field of tourism infrastructure development. During a formal meeting held at the FNCCI Secretariat on Tuesday, Dhakal met with Professor Anil Sooklal, South Africa’s High Commissioner to India and non-residential Ambassador to Nepal.
In his opening remarks, President Dhakal emphasized the importance of strengthening bilateral economic ties between Nepal and South Africa. Despite current trade volume being limited, he asserted that there is immense room for collaboration and growth.
Tourism as a Primary Investment Frontier
Dhakal described tourism as Nepal’s most naturally endowed and promising sector for foreign investment. “The geographical features of Nepal are such that one can reach high-altitude scenic hilly places from the lowlands within an hour,” he noted. “That is why Nepal is a very suitable destination for investment in infrastructure such as resorts, wellness centers, adventure tourism, and eco-tourism.”
He urged Ambassador Sooklal to encourage South African entrepreneurs to explore Nepal’s landscape and discover its investment viability, particularly in hospitality and sustainable tourism ventures. According to Dhakal, the growing interest in nature-based and wellness tourism across the globe places Nepal in a unique position to attract high-value investments.
Broader Investment Opportunities in Key Sectors
Beyond tourism, President Dhakal highlighted Nepal’s attractive investment landscape in sectors such as hydropower, agro-processing, infrastructure, and information technology. He noted that Nepal’s strategic location between two giant economies, India and China, provides additional incentives for foreign investors seeking regional market access. “In recent years, Nepal has increasingly opened its doors to foreign direct investment, and our policies are evolving to match international standards,” he added.
Government Reforms to Facilitate Foreign Investment
Addressing the regulatory environment, President Dhakal explained that the Nepal government recently implemented major reforms to improve the ease of doing business. “At FNCCI’s recommendation, the government has amended over 30 investment-related laws, making it easier to invest and repatriate income from Nepal,” he stated.
He also mentioned the draft bilateral investment agreement initiated by FNCCI, which has now been approved by the government. Dhakal believes this agreement will help establish a trustworthy legal and operational environment for South African and other foreign investors. The FNCCI expressed its willingness to facilitate business delegations, share market information, and provide continuous support to South African companies interested in entering Nepal’s market.
Ambassador Sooklal Endorses Tourism Collaboration
Ambassador Professor Anil Sooklal praised Nepal’s natural beauty and cultural depth, noting that it offers tourism experiences that parallel South Africa’s own global strengths in wildlife and eco-tourism. He emphasized the potential of bilateral cooperation in the tourism sector, which he said could yield impactful results for both nations.
“South Africa and Nepal can achieve tremendous results by partnering in the tourism sector. Nepal’s topography, biodiversity, and cultural legacy are all distinctive, similar to wildlife tourism in South Africa,” he said. “We should collaborate to promote tourism in both countries and facilitate cross-border experiences for global travelers.” Sooklal reaffirmed his commitment to expanding trade and investment relations with Nepal and expressed interest in further dialogue with Nepali business leaders to develop mutually beneficial ventures.
Current Trade Snapshot and Future Prospects
Currently, Nepal imports grains, fruits, beverages, and machinery from South Africa, while it exports carpets, ready-made garments, and iron goods. Both parties acknowledged that the trade balance is relatively small and emphasized the need to diversify product lines and expand cooperation in emerging sectors. The meeting also highlighted the role of private sector platforms like FNCCI in bridging institutional gaps and building long-term business linkages between the two nations.
Presence of Key Figures and Diplomatic Encouragement
Also in attendance was Pradeep Kumar Shrestha, former FNCCI President and currently the Consulate General of South Africa for Nepal, who expressed optimism about the future of Nepal-South Africa relations. He highlighted past engagements and ongoing efforts to strengthen business and cultural exchanges.
The meeting concluded with a shared vision of enhancing bilateral economic cooperation, leveraging the natural strengths of both countries, and cultivating a strong tourism and investment partnership that benefits entrepreneurs and communities alike.
A Milestone for Bilateral Economic Diplomacy
Tuesday’s meeting between FNCCI and South Africa’s ambassador marks an important milestone in Nepal’s economic diplomacy efforts. With Nepal actively reforming its investment climate and South Africa expressing a genuine interest in collaboration, the future appears promising for joint ventures, particularly in the tourism sector.
As Nepal continues its journey toward becoming a regional hub for adventure, culture, and wellness tourism, support from partners like South Africa will play a critical role in unlocking the country’s full potential on the global stage.
