Our pick of the best foreign investment stories on February 2
Top story: US foreign aid agency Millennium Challenge Corporation (MCC) will invest $500 million to advance Nepal’s electricity system. Image via Bloomberg Mercury
Nepal’s government and the US foreign aid agency Millennium Challenge Corporation (MCC) have shaken hands on a new $500m compact agreement to advance Nepal’s electricity system and stimulate the region’s clean energy trade, a state department spokesperson confirmed.
On top of the “thousands of jobs” this will create, the US International Development Finance Corporation will funnel an additional $160m towards women-owned small and medium-sized enterprises, the spokesperson noted.
US undersecretary for political affairs Victoria Nuland met Nepal’s senior leadership, including prime minister Pushpa Kamal Dahal, on January 30 during a tour of four countries in the region.
US assistance so far has focused on supporting reconstruction in Nepal after the 2015’s devastating earthquake, though this month Ms Nuland also promised £2.9m in the wake of the January 15 airline crash.
The US government has committed $1.3bn to Nepal over the past five years, the US government website says; US investors are the country’s second-most active after India, according to fDi Markets data.