KATHMANDU, FEBRUARY 20
UK Minister of State for Development and Africa Andrew Mitchell visited Nepal on 19-20 February and announced a new development portfolio.
New UK Development Portfolio will help Nepal to tackle the climate crisis, mobilise international finance for development, deliver economic transformation, and support governance and inclusion, according to a press release issued by the British Embassy here today.
UK development support will see £400 million ($505m) in grants delivered by 2030 which will help create 13,500 jobs, attract more than $1 billion in investment and support access to quality health and education services for two million women and girls. A new £400m development portfolio will mobilise vital private sector funding in development, tackle the climate crisis and support economic growth in Nepal.
The plan will support the creation of 13,500 jobs, help Nepal attract over $1 billion in investment, and deliver access to quality health care and education services for two million women and girls by 2030. Its focus on long-term, systemic transformation emphasises the UK's commitment to supporting sustainable and inclusive development globally, as set out in the recently published White Paper.
Minister Mitchell said: The UK and Nepal share close bonds, cemented by 'our' deep history as Nepal's oldest partner. We also share an ambition to secure a more resilient and prosperous future for Nepal.
"During my visit I saw how the UK is helping marginalised communities, building climate resilience and a sustainable economic transformation for Nepal, he added.
"Our new development portfolio, Mitchell said, will help Nepal on that journey and mobilise the funding needed to support growth and development.
This is part of a partnership fit to respond to the challenges and opportunities during the next hundred years of UK-Nepal friendship, he added.
In a speech at the Ministry of Finance, the UK Minister set out on how the UK will work with Nepal to help mobilise development funding, tackle the climate crisis and build business, to support Nepal's expected transition from Least Developed Country status.
Improved access to sustainable local infrastructure, a key element of that transition, is expected to benefit 1.7million people across the country.
After signing the Development Portfolio at the Finance Ministry, Minister Mitchell said bonds forged on the battlefields with the Gurkhas – who are so rightly famed for their extraordinary courage – date back two centuries and those admirable soldiers epitomise the deep and lasting friendship between the UK and Nepal, a friendship that continues to evolve and shape our future together.
"When I last visited Nepal, over a decade ago, you were still recovering after a decade of civil war. Today, we are witnessing the fruits of progress. Ninety-two per cent of people have access to electricity from 67 per cent in 2011. Literacy rates have jumped from 66 per cent to 76 per cent. Infant mortality is nearly one third of what it was 25 years ago. You have made huge strides in economic growth," Mitchell said. Millions are engaging in the new democratic system. Not just at home but abroad, Nepal is also showing it is a model citizen – whether defending the UN Charter on Ukraine or as a peacekeeping superpower, he added.
Stating that Nepal's progress has been remarkable, the minister said, but Nepal still faced challenges and 'we' need to work together to solve them together.
In December, I set out a clear UK vision for development that will help us, together, get our sustainable development goals back on track, Minister Mitchell said.
We're committed to expand this and support the government's investment summit – though I stress how vital it is that investors have the right environment. For example, legal reforms and ensuring all actions needed to avoid the Financial Action Task Force's grey-list.
Our third offer focuses on women and girls: I've always said that to understand development, you need see the world through the eyes of women and girls.
He said his visit was just part of the UK's lasting, and sustained engagement with Nepal.
Now is the time, just before the Investment Summit that Nepal is holding at the end of April, that we can see real progress made with the laws that are going through your Cabinet and your Parliament are clearly set in action, put in place, to assure the private sector that here is a welcoming environment in which they can take pride and prosper, Minister Mitchell added.
During his visit, Minister Mitchell held talks with Prime Minister Pushpa Kamal Dahal, Foreign Minister NP Saud and Finance Minister Prakash Sharan Mahat. Together they affirmed UK support for Nepal's Investment Summit in April 2024, and discussed the reforms necessary to mobilise finance and attract investors.
As part of the new portfolio, Minister Mitchell welcomed the recent agreement by Nepal's Cabinet on new programmes that will support green and inclusive growth, attract foreign direct investment, and promote more inclusive business.
While in Nepal, Minister Mitchell visited the Upper-Trishuli-1 Hydropower project to see the impact of nearly $22m of British International Investment (BII) funding. This investment will provide clean and reliable energy to millions of people, while boosting economic growth by creating jobs, the British Embassy said in its release, adding that supporting multilateral development banks and development finance Institutions to adopt new business models and mobilise more investment remains a key priority for the government.
Minister Mitchell also saw how UK investment is supporting job creation and entrepreneurship at Upaya, Nepal's first tech-enabled transportation logistics provider, and with the Youth Innovation Lab who are harnessing digital technology to build Nepal's disaster resilience.
Minister Mitchell saw first-hand the threats of climate change in the Hindu Kush Himalaya, and how the UK is helping Nepal manage climate risk. This includes through the £274 million Climate Action for a Resilient Asia (CARA) programme, supporting the Integrated Centre for International Mountain Development (ICIMOD) to promote a more climate resilient and inclusive Hindu Kush Himalaya.
At the One-Stop Crisis Management Centre at Lumbini Province Hospital, the minister saw how UK funding is improving support to survivors of gender-based violence. He also discussed how the UK is supporting female entrepreneurs, thought leaders and activists to address social exclusion of women and marginalised groups.
