UK Commits $505 Million Development Grants to Nepal by 2030, Focusing on Climate Action and Economic Growth

The UK has committed $505 million in development grants to Nepal by 2030 through two agreements: the Nepal in Business (NIB) program and the Green Growth Nepal (GGN) program. Aimed at addressing the climate crisis and promoting economic transformation, the grants are part of the UK's new Development Portfolio. The initiatives target job creation, attracting over $1 billion in investment, and providing health and education services for two million women and girls by 2030.

The NIB program, valued at over £70 million, focuses on unlocking Nepal's economic potential by supporting small and medium-sized enterprises (SMEs) and addressing income poverty. The GGN program grant aims to achieve green, resilient, and inclusive growth by investing in green industries, climate-resilient infrastructure, and sustainable economic policies. The UK's commitment reflects a long-standing partnership, with Finance Minister Dr. Prakash Sharan Mahat expressing gratitude for the support in meeting Nepal's development priorities.

During his visit to Kathmandu, British Minister for Development and Africa Andrew Mitchell discussed the UK's commitment to Nepal's transition from Least Developed Country status and pledged support for the Investment Summit in April 2024. Mitchell emphasized the importance of reforms to attract investors, and his visit included inspections of projects such as the Upper-Trishuli-1 Hydropower project and initiatives addressing climate change and gender-based violence, showcasing the impact of UK funding on Nepal's sustainable development.