USAID has also started a similar kind of "impact investing"model.....one of the many initiatives of USAID is its recent partnership with -JPMorgan Chase & Co., the Rockefeller Foundation, Bill & Melinda Gates Foundation and the Gatsby Charitable Foundation to invest $25 million worth of commercial capital in agriculture-related small and medium-sized enterprises in sub-Saharan Africa.
Nepal in the future might see a similar investment policy from USAID & DFID....... SO what does that mean to the Nepali Private sector, Development Agencies ,NGO and commercial banks ?
My questions :
- Less Anti-Aid sentiments,since investments will fall under FDI not foreign AID ?
- Investments from USAID and DFID in private sector also means contribution for the entrepreneurial culture and venture capital eco-system in the country ? If these organization are providing equity capital,that means, the entrepreneurial will have more guidance and flexibility to take more risk ?
- Entrepreneurs will be more willing to take equity investments /debt from these organizations , does that that means increasing competition for the commercial banks ? Cost of capital for these organization will be cheaper then that for the commercial banks.....
- How will these organizations investment there risk capital ? existing channels like " NGOs" are incompetent to do investment due diligence and support operation of the ventures ....
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