E-commerce
Growth in online market sellers is expected to contribute the Nepalese economy in big way. Nepal’s
e-commerce industry is value at US$30 million and is expected to grow at more than 41%. The
number of online sellers and platforms connecting to e-commerce is growing exponentially. The
employment impact for the sector has been estimated to be 1:4, where four indirect jobs are created
for each direct job. Increase in online seller base also creates additional 12 jobs in support services
as delivery, customer service, warehousing etc.
Technology Start-ups and App ecosystem
Nepal’s startup sector is still in infancy and app ecosystem has only started to see growth in past
couple of years. With improvement in IT infrastructure, the start-up sector can enable the app
ecosystem in Nepal, which is combined with mobile-devices can unlock an entire new segment of
employment. The impact on job market has been impressive where for each job in App economy
created 2.9 jobs in direct, indirect and induced forms.
Evolution of internet and IT-BPO growth
Nepal’s IT space has about 500 companies with most of them with most of them focused on IT and
ITES. Tech start-up scene in Nepal has been around for some time but has failed to catch up. The
sector has started to grow with more focus from government and boost in the IT infrastructure. ITBPO can be catalyst to Nepal’s tech-based job creation on the lines of neighboring India, Philippines
and Vietnam while adding to services sector.
Strengthening of innovation Ecosystem
Internet and ICT are considered as key enablers for innovation and R&D in modern times, helping
to bring together isolated wells of disruption. Homegrown innovation ecosystem is the key to
attracting foreign investment and also enabling disruptive growth across key sectors as banking,
finance, inclusive innovation, agriculture, skill development education, while creating new
employment opportunities in process.
Industry and Construction
With increase in telecommunication infrastructure deployment, direct job markets across
construction and engineering will see growth. The nature of jobs is expected to be a mix of skilled
blue collared jobs and white collar jobs. Additional employment opportunities in field of support
activities as logistics and supply would also emerge. Domestic telecom and ICT industry will see
job creation in form of maintenance and sales of hardware. Further development of infrastructure
can encourage domestic manufacturing
Caveat
The mentioned growth figures in the report are estimates based in specific assumption on condition of
current state of economy, future policy direction, governance efficiency and other independent market
factors that can influence economic conditions. The goals are achievable when simultaneous changes
can be brought about in governance pattern and decision-making.
Nepal’s ICT sector has been a key victim of lack of proper project implantation and slow utilization of
project funds. There are also challenges with physical infrastructure in terms of roads and rails, which
can prove to be hindrance. With expects simultaneous efforts in the direction of overcoming these
challenges to gain optimal benefit out of Digital Nepal project.
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