Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth

Page 68

Mott MacDonald | Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth

5.4

High cost of power utilities

Electricity tariff in Nepal is one of the highest in the South Asian countries and this has impacted consumption by both the households and industrial sector.

Figure 26. Extent that high cost of power utilities hinders business growth The Nepal Electricity Authority (NEA) is charging an average of Rs 10+ and Rs 30 per unit for households and industrial users, respectively even if the cost per unit for the state-owned power utility has come down to Rs 2 per unit (Republica 2021).

5.5

Weak price competitiveness

Nepalese SMEs are currently facing challenges to compete with imported products in the domestic market as well as in the international markets. In most sectors, Nepal’s exports are curbed by high costs.

February 2022

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Figure 39. Extent that limited internet connectivity hinders growth of tourism enterprises

1min
page 99

Figure 38. Extent that decline in tourist spending / tourist volume hinders growth of businesses in the Tourism Sector

1min
pages 97-98

Figure 37. Extent that high tax rate hinders business growth in the Construction Sector

2min
page 94

Figure 36. Extent that getting a business license is a problem for enterprises in the Manufacturing Sector

0
page 87

Figure 35. Extent that corruption hinders business growth of enterprises in Manufacturing Sector

0
page 86

Figure 32. Extent that insufficient supply of raw materials hinders business growth of Agribusinesses

0
page 78

Figure 33. Extent that limited access to storage facilities hinders business growth of Agribusinesses

1min
page 80

Figure 34. Extent that customs and trade regulations hinder business growth in the Manufacturing Sector

0
pages 84-85

Figure 31. Extent that lack of testing laboratories hinders business growth of Agribusinesses

0
page 77

Figure 30. Extent that customs and trade regulations hinder business growth of Agribusinesses

3min
pages 74-76

Figure 23. Extent that high cost of transportation hinders business growth in the three provinces

2min
page 65

Figure 26. Extent that high cost of power utilities hinders business growth

0
page 68

Figure 29. Indicative value added per worker per province

4min
pages 70-73

Figure 25. Extent that unreliable electric utilities hinder business growth

1min
page 67

Figure 17. Breakdown of respondents in manufacturing sector by number of workers, 2017 & 2021 35 Figure 18. Breakdown of respondents in the Tourism Sector by annual sales: 2017, 2019, and 2020

3min
pages 57-59

Figure 24. Extent that poor accessibility hinders business growth

1min
page 66

Table 9. Number of enterprises located in Province 2 by focus sector, 2018

4min
pages 43-44

Figure 3. Distribution of Construction and ICT enterprises by province

1min
page 30

Figure 5. Breakdown of respondents by major market

1min
page 34

Figure 10. Percentage contribution of each province to GDP, 2019/20

0
page 41

Figure 9. Providers of financial services

2min
pages 38-40

Figure 8. Sources of funds for business expansion

0
page 37

Figure 7. Sources of funds for purchase of fixed assets

0
page 36

Figure 6. Sources of working capital

0
page 35
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