How to encourage and incentivize Non Resident Nepali to diverge their foreign banks savings into productive sectors of Nepal was discussed in the Non-Resident Nepali (NRN) conference, which was held in Dubai between Jan 14- Jan 16, 2011. Considering the current political situation of the country, hopes for increase in foreign direct investment or foreign insistuational investment is very slim. Majority of Nepali diasporas all around the world are willing and wanting to contribute to socio-economic development of their motherland. However, they are reluctant to invest because of the lack of safe investment opportunities and skeptical to give charities due to ineffectiveness and un-sustainability of philanthropy. Impact investments venture fund (IIVF) might be the perfect investment vehicle to attract foreign capital inflow from the NON Resident Nepali. Manage by private sector financial experts IIVF is a hybrid between venture capital and philanthropy.Capital pooled in by the NRN will be invested as a debt or a equity in startup enterprises providing low income household with access to access to healthcare, water, housing, alternative energy, or agricultural inputs. At the end of the investment period, investor will have the option to pull out their principal and interest or reinvestment it in similar kind of enterprises . Over the past decade the living standard of the low income household in Nepal have significantly improved ,primarily ,due to the high inflow of remittances. Appetite for consumer goods and basic necessities like education, healthcare, clean water has also increase. Despite the huge demand and willingness to pay by the people of the bottom of the economic pyramid there is a high supply constraint. Commercial financial institutions often over look those enterprises serving the low-income household as being too small and risky. There in a good opportunity for Impact investment venture fund to do social good as well as attract decent financial returns.
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