As we commemorate the 50th anniversary of diplomatic relations between Finland and Nepal, we reflect on our shared journey, the significant strides we have made together and the opportunities that lie ahead.

Finland has long been a committed partner in Nepal’s development, driven by shared goals, mutual respect and commitment to sustainable growth. Over the years, in close collaboration with the Government of Nepal, Finland has contributed significantly to the lives of Nepalese people, focusing on key areas such as education, gender equality and inclusion, as well as water management, livelihoods and climate resilience.

In particular, Finland’s partnership with Nepal in the development sector has been deeply impactful. With our support, over 2 million people in Nepal have gained access to drinking water. We have supported women’s economic empowerment, and our collaboration in Nepal’s education sector has contributed to the increase of literacy rate and girls’ enrollment in schools, opening doors to a thriving future for the next generation.

Our collaboration extends beyond government-to-government support. Around 20 Finnish civil society organisations have worked in Nepal for years with their local partners, covering themes such as disaster risk management, women entrepreneurship, livelihoods and the rights of persons with disabilities. These partnerships reflect the strong bond between our countries.

We are also working closely with the European Union on jointly funded projects as part of the Global Gateway strategy, and with the UN, particularly with UN Women and UNICEF. These partnerships ensure our efforts are aligned for maximum impact.

As Nepal is reaching the important step of graduating from the Least Developed Country (LDC) category in 2026, new opportunities for cooperation are emerging. Finland is eager to explore new ways of supporting Nepal’s growth, focusing on the role of the private sector in development efforts. Public development funding covers only part of what is needed to deliver the Sustainable Development Goals, which is why Finland is committed to increasing the private sector’s participation, while also strengthening developing countries’ own public finance and domestic resource mobilisation. This is underlined in the Finnish Governmental whitepaper on trade and development, published in July this year.

Trade and development

The foundations of the aforementioned development cooperation results of Finland and Nepal date back to 1980s, with Finland starting its support to Nepal’s forestry sector. During the decades, linkages between our countries have grown broad and versatile, in particular through the people-to-people connections built by the civil society, and other Finnish actors who have established strong ties with Nepal. Themes such as weather forecasting and arsenic-safe drinking water have been focus areas through institutional cooperation between Finland and Nepal.

This broad and longstanding cooperation is now expanded by diversifying our bilateral relations, especially in bridging development cooperation and international trade. Finland’s objective is to build equal and sustainable partnerships with developing countries, based on mutual benefit and respect.

The development policy of the Finnish Government emphasises the crucial role that the private sector plays in driving national development. To facilitate access to financing, technology, expertise and markets, Finland’s development cooperation offers a range of financing instruments designed to engage the private sector, both the big companies and small and medium enterprises (SMEs). These instruments integrate private sector participation in development initiatives, enhancing opportunities for sustainable growth and innovation.

Finland’s development financing instruments, such as Finnfund and Finnpartnership, play a key role in promoting sustainable development and generate a lasting impact by investing in businesses that solve the development challenges.

Our national development finance institution Finnfund is active in Nepal and it has been a trailblazer in its investment in Dolma Impact Fund, paving the way for impact investing. Finnpartnership is a business partnership programme that as well has long been engaged in Nepal. Finnpartnership supports the partnerships between Finnish and Nepalese companies, facilitating collaboration and discovering new international business opportunities. Through its match-making service, Finnpartnership helps identify potential business partners, fostering mutually beneficial relationships that contribute to economic growth and sustainable development in both Finland and Nepal.

Although trade between Finland and Nepal is still rather modest, there are potential sectors and emerging opportunities for increased collaboration, utilising the already existing connections. In this context, Finnish companies are well-positioned to participate in Nepal’s growth. From high quality digital solutions to circular economy, clean energy, meteorology, and education, Finland has a great deal of expertise to offer. Our collaboration has the potential to drive innovation and create new opportunities for both Nepal and Finland.

I have the pleasure to visit Nepal during this week, and I am looking forward to advancing the bilateral relations between our countries. Both development cooperation and international trade are important objectives of the visit and I will be observing the good results of our joint efforts as well as advancing the new linkages of development and trade.

As the partnership of Finland and Nepal turns 50 years, we commemorate the achievements of our cooperation and look towards the prospects that lie ahead. The challenges we face today are global in nature and require collective action. Finland stands alongside Nepal as a reliable partner, sharing our knowhow and expertise to build a more sustainable and equitable future.