Priority areas of German-Nepal Development Cooperation

According to the Human Development Report 2014, Nepal is one of the poorest countries in South Asia - only Afghanistan lags even more behind. The Federal Republic of Germany maintains diplomatic relations with Nepal since 1958 and has always been one of the most important bilateral donors. Since the commencement of our bilateral development cooperation in 1961, a total of 1.099 billion EUR has been committed for bilateral projects. The Government of Nepal appreciates Germany as a long-term and reliable partner. Germany has also maintained its cooperation programmes in difficult times during the armed conflict (1996 – 2006).

After a Comprehensive Peace Accord between the Government of Nepal and the Unified Communist Party of Nepal (Maoist) in November 2006, Germany has decided to expand development cooperation with Nepal to address pressing socio-economic challenges. In accordance with the development strategy of the Government of Nepal, German-Nepal Development Cooperation aims at a reduction of poverty through a socially inclusive development of the country.

For 2012 /2013, Germany committed 42,5 million EUR for bilateral cooperation. The next Government negotiations will take place on 1st and 2nd of December 2014 in Kathmandu.


As agreed during Government consultations in 2012, German-Nepal Development Cooperation focuses on three priority areas:

- Sustainable Economic Development and Trade

- Renewable Energy / Energy Efficiency

- Health

Another sector of the long-term engagement in Nepal is the Support to the Peace Process, which will be phased out by the end of 2014. All projects of German Development Cooperation are taking into account the post-conflict situation as a cross-cutting issue in the above mentioned sectors. Regional priority areas of German Development Cooperation are the Mid Western and Far Western Development Regions.

In addition, the German Civil Peace Service (CPS) is implementing several measures supporting the peace process in cooperation with both Government and civil society partners.

Beyond that, a Small-Scale Fund enables the German Embassy in Kathmandu to support local organizations in implementing their projects.


Priority areas of German-Nepal Development Cooperation

In accordance with the development strategy of the Government of Nepal, German Development Cooperation aims at contributing to the reduction of poverty focusing on three priority sectors.