Study to identify the opportunities and constraints for private sector involvement and investment in Nepal’s forestry sector

Starting Date: April 2013
Ending Date: May 2014
Location: Nepal
Donor(s): Multi Stakeholder Forestry Program, Nepal
Implementation Partner(s): EnterpriseWorks and NEHHPA

The overall objective of this study was to develop a thorough understanding of the current status and future potential of private sector investment and involvement in the forestry sector of Nepal, and use this to develop a strategic plan with appropriate interventions.

Specific Objectives:

  • Prepare synthesis of context information on the status of private sector engagement in forestry e.g. investment, employment, institutional modality, policies etc. This should include stocktaking that presents the current status and investment models of private sector engagement in Nepal’s forestry sector building on the existing knowledge that includes, but is not limited to, CF impact study, Employment in Nepal’s forest sector, MSFP baseline survey;
  • Identify the potential partners and investors such as banks, private companies, cooperatives and private entrepreneurs for enterprise and business establishment, and estimate the scale and the geographical distribution of such investment and market potential of the value chain of important products
  • Identify the key constraints for private sector engagement in the forestry sector of Nepal;
  • Identify opportunities, actions, strategies and policy recommendations that could promote private sector engagement and job creation in the forestry sector of Nepal;
  • Identify specific and actionable opportunities in terms of i) products ii) producers and iii) finance and disseminate the information to the key stakeholders through effective and appropriate means
  • Develop Information-base for potential investors and interested parties on the forest-based industries and investment opportunities;
  • Identify potential products and interventions to support investment and job creation in the sector. Interventions must be recommended at two different levels – broadly for the forest sector as a whole and specifically for MSFP to develop its strategy.