Seeking to improve business friendliness in the sanitation sector in Nepal, GGGI holds focus group discussion with private sector sanitation experts and operators

On December 16, 2019, GGGI brought together business representatives active in sanitation and waste management to understand and discuss fiscal opportunities that support private sector growth in the sanitation sector and improve business friendliness. The consultation supports development of market friendly policy interventions in sanitation under the Green Sanitation Services Program. In addition to the policy interventions, the program aims to develop municipal green growth strategies at the local level, and develop and commercialize green sanitation technologies into financially robust sanitation services.

The private sector representatives voiced the need to simplify bureaucratic processes in acquiring existing fiscal incentives for businesses. Additional roadblocks include reluctance of banks in lending for businesses and high taxation on services and challenges in funding foreign direct investment in the sanitation sector. The floor agreed that absence of a proper market and lack of awareness of the importance of urban sanitation amongst the general population are contributing to the sluggish growth of green enterprises in the sanitation sector. All stakeholders also echoed the need for strong support from local and federal government agencies to enhance capacities of the business entities.

Although there are challenges, all stakeholders agreed that there is potential to generate opportunities for the business community. Viability gap funding and tax rebates are fiscal measures that improve business prospects of the private sector in operating green enterprises. A robust market for the sanitation products is crucial in providing financial security and sustaining businesses. These positive changes can pave the way for the business community to make use of existing opportunities in the sanitation sector.

GGGI will be working with its partners to develop a range of activities and outputs to enhance the business friendliness of the sanitation sector moving forward.