– SAHESHA Upadhyay

BACKGROUND

The WHO recommends a minimum of 2.5 health workers per 1,000 population as a general benchmark to ensure adequate access to essential health services. This ratio appears as an unconvincing goal for Nepal given its current ratio of  8.52 per 10,000 (or 0.85 per 1,000 population). This presents a major challenge in terms of healthcare access, particularly in rural areas where mountainous terrain has impeded infrastructure development. The emergence of digital healthcare technology, including telemedicine, tele-visits, remote monitoring, IoT equipment, wearables, and digital healthcare database management, offers a promising solution to bridge this gap. The successful integration of a digital healthcare system requires efficient and dependable energy infrastructure as a foundation. Nepal, therefore, needs to align its healthcare and energy goals if it is to fully realize the potential of digital healthcare technology. 

Snapshot of Digital Healthcare in Nepal  

In recognition of the potential impact of digital health on healthcare accessibility and quality, Nepal’s Digital Framework 2019 has identified health as one of its eight priority sectors and established seven initiatives aimed at leveraging digital tools and technologies that include:

1. National Digital Healthcare Platform
2. Next-Generation Digital Healthcare Facilities
3. Electronic Health Records 2.0
4. Mobile Health Units 
5. e-Maternal Care
6. Drones for delivery of emergency medical supplies
7. Centralized Telemedicine Center

Several online platforms, including Jeeve, Hamro Patro, TeleCareNepal, Tele Upchar, and Hello Health, have successfully been delivering digital healthcare services in Nepal. Their services range from e-consultation and drug prescription to drug delivery to electronic management of healthcare records. Post-COVID-19, Nepal’s telehealth and digital health technology sector has witnessed a significant growth. Despite Nepal’s healthcare system being on the brink of collapse during the pandemic, the need for innovative solutions that could deliver healthcare services to people remotely was amplified. As a result, the utilization of Internet and telephone technologies for consultations skyrocketed in both hospitals and clinics, with numerous new and cutting-edge applications emerging. Furthermore, the country experienced a remarkable transformation in digital payment technologies and services, contributing to the widespread adoption of digital health channels.

Electrification and Healthcare

Despite all the possibilities that digital technologies offer, the challenge is to equip these technologies with the best resources that will keep them running smoothly. Electrical power remains the backbone of hospital operations; we need it not only for powering specific healthcare devices and technologies but also for basic office operations works including lighting, communication, and refrigeration. We cannot emphasize the term “reliability” enough when discussing the availability of electricity in regard to healthcare access. Interruptions in electricity, even for just a few minutes, can have dire consequences, such as life-saving devices failing during medical procedures, or critical medicines becoming spoiled due to loss of refrigeration. Likewise, tele-visits and remote-diagnoses are out of the question, when electricity is simply not dependable. Electricity must be ubiquitous in Nepal for healthcare access to be universal.

We cannot overemphasize the term “reliability” when discussing the availability of electricity in regard to healthcare access. The Energy Progress Report 2020  indicates that 90 percent of Nepal’s population has access to electricity, yet despite this achievement, frequent power cuts in rural areas continue to pose difficulties for the proper functioning of healthcare facilities. According to the Nepal Electricity Authority, several districts, including Ilam, Panchthar, Taplejung, Okhaldhunga, Khotang, Solukhumbu, Bhojpur, Sankhuwasabha, Udayapur, Kavre, Makwanpur, Dhading, Nawalpur, Darchula, and Dolpa have very low electrification;  Dolpa, Mugu, and Humla of Karnali Province have no connection to the national grid at all. The World Health Organization (WHO) also reports that only 65 percent of hospitals and 56 percent of non-hospital healthcare facilities in Nepal have a steady supply of electricity. Likewise, four percent of healthcare facilities in the country do not have access to any electricity supply. The issue of limited access to reliable electricity in healthcare facilities affects nearly one billion people globally, as reported by the United Nations.

For telemedicine and remote-diagnostic technologies to be successful, it is not only crucial for hospitals but also for individual households to have access to reliable electricity. Despite the widespread availability of affordable mobile devices and the expansion of 3G and 4G networks, which have led to a 90 percent coverage of wireless networks in Nepal, there are still significant gaps in coverage, particularly in rural areas. These limitations hinder effective telemedicine visits and remote diagnostics. As such, ensuring access to reliable electricity is essential for both powering devices and providing reliable broadband internet access.

Way Forward

The integration of alternative energy sources such as solar panels holds great promise as a transformative solution that can revolutionize healthcare services in Nepal. In many rural areas, solar power initiatives have already been successful, with 15 percent of the population gaining access to electricity through solar grids as reported by Nepal News news portal. Moreover, the cost of solar panels has decreased significantly in recent years, making it a more viable option for expanding healthcare services. By expanding these programs to rural healthcare facilities, Nepal can significantly improve the digitization of its healthcare technology and make healthcare facilities more reliable.

One way to achieve this is by implementing projects aimed at decentralizing electricity by providing every remote healthcare facility with its own solar panel grid. This not only has the potential to enhance service delivery but also make electricity access more resilient. Catastrophic climate events or any other national emergency will not interrupt the operation of specific healthcare facilities. A great example of this is St. Luke’s Hospital in Ethiopia, where a private renewable energy company provided assistance in implementing a groundbreaking solar hybrid system that delivers 320 KWh of electricity. This resulted in significant cost savings and improved service delivery.

In addition to its impact on healthcare delivery, the electrification of healthcare facilities can also have a profound effect on the distribution of healthcare professionals. A study has shown that access to reliable electricity and digital healthcare technology can serve as a powerful incentive for healthcare professionals, particularly in rural and remote areas. By making healthcare facilities more appealing and attractive, electrification can help attract and retain healthcare professionals in these areas, thereby increasing the availability of healthcare services for communities in need.

To ensure the longevity and effectiveness of these projects, regular maintenance of power plants and medical equipment, as well as personnel training, must be prioritized in the healthcare project design and budgeting process. Effective collaboration between stakeholders from both the healthcare and energy sectors, including public and private entities, can guarantee that healthcare needs are taken into consideration during the design and implementation of electrification projects. Finally, it is also important to draw attention to the fact that the adoption of digital healthcare, particularly telehealth, has far-reaching benefits that go beyond just improving individual health outcomes in rural areas. In addition to providing convenient access to medical services, by eliminating the need for frequent doctor-patient commutes, telehealth significantly reduces the carbon footprint associated with transportation

– ANKUR Shrestha

Historically, women’s participation in the tech sector has been remarkably low due to the patriarchal classification of jobs. As a consequence, it led societies to believe that men automatically belong to the fields such as IT while leaving a very narrow space for women. This has caused only a few women to study and subsequently enter the tech sector.

Nevertheless, this is changing, as it rightly should. According to Deloitte Global, the tech industry is making steady progress in shrinking its gender gap. In 2019, overall female representation in large global technology firms was 30.8 percent. Deloitte estimated that women’s share in the overall global tech workforce increased by 6.9 percent from 2019 to 2022. Public commitments by large tech companies to improve gender diversity also aided this increase. Intel, for example, aims to double the number of women and underrepresented minorities in senior leadership roles by 2030. Similarly, HP pledged to reach 50 percent gender equality in roles at the director level and above by 2030.

In Nepal, we see a similar upsurge. According to Nepal’s 2011 census, only 1,117 females studied computing while the number increased to 11,078 in 2021. This shows a monumental increase of about 892 percent in female students in the tech sector during the ten-year period. It also beats the overall increase in students studying computing which amounts to more than 668 percent which is significant by itself as well.

Conversations with women professionals working in Nepal’s tech sector show that one major reason for this uptick is that IT has set itself as an industry better suited for women workers. However, our societal structure has for long had restrictions for women to work (especially after marriage), restricts economic freedom, deems late office working hours as unsafe, treats periods as taboo, considers men as primary breadwinners, and puts less value on women workers. The IT sector provides a workaround for many of these societal issues. Asmita Bajracharya, Product Manager at Innovate Tech says that work in the IT sector can usually be done from home and has flexible work timings, project-based pay, space for freelance work, and a relatively higher pay scale compared to other industries. All these, therefore, she believes make the sector one of the best for working women in Nepal. 

However, the IT sector is also rife with issues depending on which company you analyse or whom you talk to. IT startups are particularly problematic while established companies usually have stringent policies in place. However, we see such discrimination usually persist in smaller and newer companies even within the IT sector. Additionally, smaller companies generally have issues such as longer working hours, and no set leave policies. Nepal’s Labour Act 2017, Chapter 7 Section 33, also requires arrangements for transportation to and from the workplace in employing a female where the working hours begin after sunset or before sunrise. Advocate Sadikshya Maharjan says that this particular section, while well-intentioned, can also cause smaller companies to discriminate in hiring women as they are not able to provide these services.

Another area of the Labor Act, Chapter 2 Section 7, prohibits discrimination in remuneration for equal work. However, unequal pay issues continue to persist in the sector. IT companies are usually structured around payment through projects. Therefore, discrimination while assigning job responsibilities leads to a vicious cycle where companies assign lesser-paying projects to women, leading to lower performances in performance reviews. This subsequently leads to less pay and lower chances of promotion resulting in more incidences of discrimination. Ojaswi Poudel, currently a Software Engineer at Cotiviti, says that she faced such blatant discrimination in one of her previous workplaces. However, she believes having women in senior positions in the company can help break this cycle. She also sees the need for senior women mentors so that younger women have someone to look up to and gain more confidence in this field. She says she does not face such issues in her current company which is more structured, has proper mentorship, and has clear payment policies.

Sadhana Gurung shares similar advantages in her company. Gurung who works at Leapfrog Technology currently as a Software Engineer, QA has proper mentorship models, flexible timings, as well as opportunities for growth in her company. This might also be one of the reasons why it is easier to get more motivation from peers and have women-friendly policies at the office. She also notes how despite fewer women currently working in IT, even clients and senior management are happy to see women workers, are welcoming, and provide proper career guidance.

While it would be a generalisation to say that there is very less discrimination based on only three experiences, trends do point towards more inclusion and provisions of a more equitable working environment for women in tech. With more women choosing the tech sector for their studies and work, and established companies having non-discriminatory policies, the tech sector in Nepal seems to be slightly ahead of the curb than other workplaces in Nepal. A study by McKinsey research showed that the most diverse companies are 48 percent more likely to outperform the least gender-diverse companies. It is then to the benefit of everyone to create a more gender-diverse workplace. There is more to still do to achieve gender parity but the tech sector in Nepal definitely seems to be heading in the right direction.

This blog is a part of NIPoRe’s blog series on Women’s History Month 2023.

Pradhyumna Wagle

Digitalization has been at the forefront of development in the last 50 years. It has allowed developing countries to access information and resources like never before. Often, it is suggested that digitalization would help underdeveloped economies to skip the industrial development phase and quickly catch up with the developed economies, a process known as leapfrogging. Increased internet access and rapid transformation of bricks and mortar to digital form after the mid-20th century has laid out a base for the so-called Fourth Industrial Revolution (4IR). A World Economic Forum report suggests that 4IR will be a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres. It cannot be emphasized more on how quickly developing countries need to prioritize digitalization and thrive through the 4IR. On the other hand, there has never been a time in history where access to information and knowledge has been so available. Therefore, it is a perfect opportunity for small economies to absorb as much resources as they can and recognize digital transformation as the way forward.

Nepal’s inability to compete with other developing countries in industrial development, especially manufacturing, can be primarily linked to geographical structure and human resource, among others. While digital infrastructure would need geographical convenience at installation, connectivity and evolution do not. Nepal is in a good position to exploit the digital resources that are available, and the ones it can generate from within, like electricity, to climb up the development ladder. The base for digital infrastructure, electricity, can be accessed by 94 percent of the population and Nepal Electricity Authority plans to achieve 100 percent electricity access by 2024. Internet penetration is at an all time high with 99 percent of the population having access to mobile broadband connection. It is safe to say that the Government of Nepal has realized the importance of digitalization and recognized it as the future. Hence, it published the Digital Nepal Framework 2019 (DNF) which includes short-, medium-, and long-term plans to reshape Nepal’s economic and social structure. As the government plans to focus on transforming different sectors to digital infrastructure, I discuss a few specific policies, possible challenges and what we can learn from other developing countries.

Adoption of technology

While emerging technologies are readily available, there needs to be proper policies that welcome new technology and create a suitable environment for it to grow. A study by Samuel A. Ejiaku concludes that most developing countries have ineffective information technology policies, and this hinders the proper growth and application of the IT sector. Interestingly, Ejikau points out that developed economies also have not contributed much to assist developing economies. This is because exporting technology would need to be modified to suit the environment and culture of the target economy. This means there must not only be policies that make importing of technology smooth, but also emphasizes on the need of skillful people that can make the adoption of technology suitable to that location.

Government of Nepal has identified digital foundation as one of the major sectors that needs to be addressed. Increasing quality digital access is the main goal of laying out the digital foundation. The government has recognized poor quality and connection strength, and digital literacy as the main problems that occlude the digitalization process. Hence, DNF includes plans to train all government employees using a proposed e-learning platform that is publicly available. It is expected that the training program would help increase digital literacy and the learning platform would generate awareness in the public as well as maintain the supply of digital trainers. The former makes sense, but the inclusion of the latter is vague. It is not clear if the platform would be used in schools or only the government agencies, but unless there are incentives to learn and teach, it would be difficult to consistently find digital trainers.  Also, there is a plan to establish ‘knowledge-parks’ in special economic zones, but this has only been linked to economic growth. Skillful manpower is one of the vital aspects of digitalization, but DNF does not include priority plans to increase technology-friendly workers in all aspects. The government should focus on changing the academic structure to push institutions to use available technology. This would help make the workforce ready and well equipped with technological knowledge. Training programs could then be used to focus on a certain technology.  

Government Services

DNF has focused on changing government agencies’ structure: from paper to digital. This includes structural transformation from within the agency: recordkeeping, budgeting, and cybersecurity as well as in the services provided: public service applications, document processing and digital signatures in national identity cards. This is promising and has already come to implementation in many offices. But there is a serious lack of maintenance among the installed technologies. Lots of public service offices showcase themselves as being ‘online accessible’ but people need to show up in person and that violates the entire purpose of making the system online. A study in Ghana about the barriers to digitalization of government budgeting in developing countries identifies outdated laws and culture of paper document flows as the institutional barriers to digitalization in public service sectors. Literature in this sector identifies culture and structures of government agencies, pre-established hierarchical structures within the organization, operational divisions and politics and resistance to innovation as the main barriers to digitalization. All of these can be associated with Government of Nepal’s offices. Hence, it is important for the government to think about tackling these issues alongside the implementation of digital platforms. Most of the plans regarding within office digital transformation listed in the DNF are longer-term and those about public services are short term. I believe that this should be the opposite. Making the internal systems secure, stable, and efficient would then pave the way for service-oriented technologies like payment systems, online registrations, and administrative works. So, there is a dire need to identify what plans are short, medium, and longer term to make the digitalization process smoother. 

Small and medium enterprises

With the wave of digitalization, all forms of market transform structurally. From production to sales, every aspect of the economy is affected by digitalization. While big organizations and manufacturers have early access to new technology using their power and accessibility, the government must ensure that small and medium enterprises are well placed to take advantage of digitalization. New technology provides small and medium enterprises comparative advantages especially in local markets and that is very important for the economy. Within the execution plan of the DNF, most plans focus on the agro-economic sector like training farmers about digital platforms and pre-season education, quality check of agricultural equipment using technology, and smart irrigation facilities. There are a few short-term plans about facilitating e-commerce services, digital payment systems and development of mobile apps for transportation and healthcare. However, all these plans require governmental support and political stability: which is missing in Nepal. A similar study about digitalization of small and medium enterprises in Yemen, whose numbers regarding digital penetration is similar to that of Nepal, finds that economic and political instability, and lack of support for small and medium enterprises to thrive, as the major challenges. What the government could do is learn from developing countries that have undergone digital transformation like Rwanda. Rwandan government is well known for creating an environment for small and medium enterprises to adopt technology and thrive, mainly through innovation support. Government of Nepal’s plans are good in a sense that they want small and medium enterprises to grow, there is no specific plan that promotes innovation. Small and medium enterprises excel mainly because of the uniqueness of their products and services and innovation is necessary for them to survive. The government should aim to remove bottlenecks in the creation of new enterprises and even if they fail, provide support to regrow through improved digital access and minimizing administrative hurdles, mainly in technological import, export, and deployment.  

Concluding Remarks

Digital access is penetrating every aspect of society today. When it comes to digital transformation, it is not if but when. The most important step developing countries like Nepal could take is to open all possible pathways to welcome and integrate digitalization into the society as smoothly and quickly as possible. In terms of time, the more time it takes for an economy to digitalize, the loss in potential to develop is exponentially worse. Therefore, it is high time Government of Nepal takes necessary progressive steps towards digitalization.

– NISCHAL DHUNGEL

Quality digital infrastructure is the foundation of a fully-functioning digital economy. Digital infrastructure using any form of the technology enables a smooth flow of goods and services in the economy. The Government of Nepal (GoN) considers the advancement of digital technology as a crucial enabler of more resilient, inclusive, and growth-oriented development. The GoN came up with the Digital Nepal Framework (DNF) plan in 2019 to restructure the economy through integration of available ICT tools. It plans to do so by granting all segments of the population equal access to services and infrastructure, encouraging private sector innovation and competitiveness, and enhancing the delivery of public services. The DNF comprises 80 initiatives divided into eight categories – digital foundation, agriculture, health, education, energy, tourism, finance, and urban infrastructure. The Nepal Planning Commission (NPC) has deemed the DNF a game-changing initiative.

Before diving into Nepal’s digital landscape, it is crucial to understand the state of digital-related infrastructures in the country. Electricity is the backbone of digital connectivity in addition to availability of quality infrastructures. In this regard, electricity is fuel to develop any form of digital connectivity. Without proper access to electricity, it is almost impossible to foster digital connectivity in the desired way. Hence, access to electricity directly impacts the availability, adoption, and use of digital connectivity. Digital connectivity may be less readily available if a steady electrical supply is not always available. Even though the electricity supply has reached most of the population, the government needs to deploy base stations in non-electrified areas to ensure affordable and reliable electricity access for all Nepali citizens.

Figure 1: Access to Electricity, Nepal (Percentage of Population)

Source: Nepal Economic Survey 2021/22, Ministry of Finance *Till – Mid March 2022

More than 90 percent of the population have access to electricity as of mid-March 2022 (Figure 1). Access to electricity has considerably increased over past years from 88 percent in 2018/19 to 94 percent till mid-March 2021/21. During the same period, the Madhesh province has the highest access to electricity i.e., 99.66 percent of Madhesh population and the Karnali province has the lowest access to electricity 43.87 percent of Karnali population (Figure 2). In 2021–2022, the installed electricity capacity stood at 2,189.6 megawatts (MW). Increasing the installed capacity of electricity has made it possible to increase access to electricity. Nepal experienced power outages that lasted up to 18 hours a day for more than ten years, from 2006 to the mid of 2017. The country currently has surplus energy, primarily during the wet season, and “load-shedding” has almost been eradicated thanks to better management, leakage control, and increased power generation. Although electricity penetration in Nepal (90 percent of the population) as of 2020 is slightly low in comparison to South Asian (95.7 percent of the population) countries, Nepal stands in an excellent position to strengthen its digital infrastructure. Before the target year of 2030 was established by Sustainable Development Goal 7, the Nepal Electricity Authority (electricity regulatory body)  revealed its plan to achieve 100 percent electricity access by 2024. The plan is realistic to set a strong base for the uptake of other digital infrastructures.

Figure 2: Access to Electricity by Province (Percentage of Province Population)

Source: Nepal Economic Survey 2021/22, Ministry of Finance *Till – Mid March 2022

The Government of Nepal has placed great importance on transforming the potential of ICTs within the broader context of its ambitious developmental objectives, which are based on reducing poverty as its primary goal. The Information Communication Technology (ICT) Policy 2015 outlines the rules and practices for developing IT infrastructures and human resources for a knowledge-based society. ICTs have the potential, among other things, to help create the environment for better governance with more open, transparent and effective bureaucracies. ICTs can also address structural issues in education and health systems, enabling more access to education and health services and bridging quality gaps in education and health.

The internet is a crucial component of the digital economy. Over the past few years, Nepal’s technology and communication sector have experienced significant growth. Nepal Telecommunications Authority (NTA) is the telecommunication regulatory body of Nepal established to provide a favorable and competitive environmentfor the development, expansion, and operation of telecommunications services along with private sector participation. According to NTA Annual Report 2021/22, total broadband (mobile and fixed) internet subscriber has considerably increased over the past years, from 66 percent in 2018/19 to 131.6 percent in 2021/21. According to the same report, there are around 38.3 million broadband subscribers in Nepal, of which 28.7 million are mobile broadband subscribers and 9.6 million fixed (wire and wireless) broadband subscribers in 2021/22. While fixed broadband (wired plus wireless) penetration has reached 33.1 percent of the population, mobile broadband penetration is 99 percent in 2021/22. Mobile broadband peneration has significantly increased over the past years from 52% of population in 2018/19 to 99 percent of population in 2021/22. According to the report, mobile broadband is the most popular means of using the internet, and the trend of mobile broadband users is increasing faster than fixed broadband. With 3G and 4G internet service already in place, the government is advancing the testing of 5G technology.

Figure 3: Broadband Internet Penetration (Percentage of Population)

Source: Nepal Telecommunication Authority, Annual Report 2021/22

Despite the progress in internet and electricity penetration, there are still issues with affordability, the digital divide, and digital illiteracy in many areas of Nepal. With regards to digital governance, the government has taken steps to digitalize public services, including, but not limited to, the digitization of data from land revenue offices, the introduction of the Nagarik App, the launch of the Nepal National Single Window (NNSW) system, the opening of the National ID card, and others. However, service seekers continue to encounter issues due to limited installed technology capacity and improper system management.

Workplace practices are changing due to disruptive technologies like artificial intelligence (AI), robotics, and the Internet of Things. The governments and businesses around the world are now able to fully realize the promise of exponential development because of digital technologies. Since the initial shutdown starting from March 2020 onwards (due to COVID-19), online commerce and digital payments have become more common. Also, the use of digital technology and GDP growth are closely related. A World Bank study found that a country’s economy grows by 1.3 percent for every 10 percent rise in internet access. Nepali pay more for internet connection than people in other South Asian countries, according to the Connectivity in the Least Developed Countries Status Report 2021. The report has emphasized a need for effective solutions in developing nations like Nepal to increase digital access and the need to develop specific policy proposals to hasten the transition to inexpensive and universal connectivity. 

Way Forward

The digital economy highlights the importance of digital technology in improving trade and competitiveness, economic opportunity and efficiency, and international economic integration of an economy. The COVID-19 pandemic and related lockdowns have sped up the uptake of digital services, making remote learning, e-commerce, and digital payments more crucial than ever. The pandemic has also made it clear how vital it is to adapt systems to accommodate shifting preferences, hastening the transition to a cashless and digitally aware society.  Supportive policies and investments in the workforce, vital digital infrastructure, and cybersecurity will have a long-lasting impact on leveraging the digital economy in Nepal. For Nepal to develop into a technologically advanced, rapidly expanding economy, digitalization and digital governance should be implemented, strengthening its digital-related infrastructure.

Recommendations

• Bring stakeholders from the public and corporate sectors and civil society to help shape digital policy in several key areas. 
• Encourage the adoption of inclusive digital policies and collaborate with the appropriate governmental entities. A working group on internet affordability should be established, with representatives from the private sector, civic society, ISPs, and regulators. 
• Build collaborations with the private sector to construct a digital economy that benefits all Nepalis.
• Concentrate on improving transactional efficiency, security, transparency, traceability, and financial inclusion. 
• Work with universities and technical schools to solve the cybersecurity workforce and research and development demands.
• Support the reform of IT curricula in higher education, work with the private sector to start apprenticeship or internship programs, and support the ICT initiatives of the Ministry of Education to increase the skill-building of the digital talent pool to match the demands of IT-sector employers better and increase Nepal’s competitiveness in the IT labor supply.

– SAMJHANA Karki

The opinion piece originally appeared in the 2022 October Issue of New Business Age Magazine. Please read the original article here.

“In today’s context, if your business is not on digital platforms, it does not survive. You lose your potential customers,” says a trainee of a USAID-supported project ‘Fostering Resilience of Women-Led Businesses (including home-based women producers) and Consumers’. After attending the project’s training on digital literacy, she began to increase her business presence across e-commerce platforms, i.e., Thulo.com. Similarly, another participant in the project shares that despite her physical disabilities, online mediums have assisted her in going into business and selling her products without significant challenges.

These two stories of Nepali women entrepreneurs represent how technology has been at the core of disrupting existing Nepali business models. Digital literacy is the competence of users to use information and communication technologies in their day-to-day personal and professional responsibilities for more extensive benefits. Nowadays, being digitally literate allows entrepreneurs to explore and make rational decisions regarding growth opportunities and risk mitigation associated with their businesses. Hence, digital technology plays an indispensable role in the promotion and sustainability of any entrepreneurial ecosystem.

Shifting Technologies
In recent decades, technological revolutions have occurred at an ever-increasing pace. People use the Internet and digital technologies to access social media, education, businesses, healthcare, jobs, financial services, government services, and much more. As of April 2022, there were five billion Internet users worldwide which is 63% of the global population. Innovation in science and technology makes it possible to enhance people’s ability to use and access technology which is one of the factors affecting economic and social growth. Digital disruption and technology adoption is nothing new, but the COVID-19 crisis has changed the setting in a way that will make them more prevalent.

The pandemic fully displayed the power of digital technologies in entrepreneurship, with the shift towards digital payment and e-commerce. Digital technologies have allowed entrepreneurs to survive and adapt to the new normal. For example, having an online shop on e-commerce sites increases the outreach of any products. Likewise, email, website, and social media play a vital role in business promotion and sales. Many digital skills are now necessary for everyday use, especially in entrepreneurship. Thus, digital literacy is required for entrepreneurs to start and run a business successfully and to grow as successful entrepreneurs. However, the existing digital divide presents a challenge to entrepreneurs in Nepal.

Women’s Status and Digital Connectivity
According to the Central Bureau of Statistics (CBS) 2019, 99% of registered enterprises are micro, small, and medium enterprises (MSMEs). Women entrepreneurs own 60% of the MSMEs, as reported by the Federation of Small and Medium Enterprises Nepal. COVID-19 disproportionately impacted MSMEs in Nepal. As stated by the Federation of Women Entrepreneurs Association of Nepal (FWEAN),  around 15% of women-run enterprises have collapsed since the pandemic. Impediments in access to finance, limited collateral, and low digital literacy are significant barriers that women entrepreneurs face while growing and scaling up their businesses during and after the pandemic.

Nepal has 11.51 million Internet users as of January 2022. Despite this, it is noticeable that there exists a gender gap in digital access. As stated in the Connectivity in the Least Developed Countries Status Report, 2021, 91% of male population and 79% of the female population own a mobile phone. This data illustrates a digital divide between men and women in Nepal. The same disparity also exists between Nepali men and women entrepreneurs. Nepali women entrepreneurs have less access to technology, use fewer mobile phones or computers or are less online than their male counterparts. The gap is more so in rural parts of Nepal where some women entrepreneurs have never been online or have little access and are missing out on the benefits of connectivity.

As mentioned in the Digital Nepal Framework, 2019, Nepal’s e-commerce industry is worth approximately Rs 3.8 billion (USD 30 million) and expects to grow by more than 41% by 2022. The framework has outlined eight domains and 80 initiatives to utilise digital development for economic growth. Out of 80 initiatives, the development and promotion of the e-commerce and Information Technology Enabled Services (IteS) ecosystem ranks 68th. This pandemic has enhanced digital transformations. The trend of online shopping has grown. Nepal has been experiencing rapid growth in the e-commerce business. It has substantial potential to contribute to the Nepali economy. In such a scenario, financial, digital, and Internet literacy is essential to make women genuinely employable and empowered.

The existing digital divide, however, leaves many women entrepreneurs behind. Due to the deprivation of information about online marketing platforms and not knowing how to operate them, Nepali women entrepreneurs continue to miss chances to connect with potential investors and customers. Besides that, electronic banking, one of the latest technologies adopted by banks, poses another challenge to women entrepreneurs. With the linkage of financial transactions with electronic systems, entrepreneurs who are not tech-friendly have less access to finance. Furthermore, female entrepreneurs must have digital skills with a sudden shift in business to the technological sense of advertising and selling products and services. In addition, they require digitisation skills to use online banking services and digital payment platforms.

Way Forward
Women entrepreneurs contribute to achieving broader development objectives such as capital formation, employment generation, and innovation. They act as a backbone for resilient and sustainable economic recovery. Investments in female education, and financial and digital skills training are required to empower women entrepreneurs. The government has been investing in several initiatives for spreading digital and financial literacy across the country. The Monetary Policy, 2022/23 talks about preparing the ‘Financial Literacy Framework 2022’.

Likewise, the budget for fiscal year 2022/23 has noted that the government will lead initiatives to promote a fully digital banking system. In collaboration with international organisations, banking, and financial institutions, the government should invest in preparing an innovative model so that women can utilise subsidised loans and various schemes. Training on digital financial services, like e-banking, mobile wallet, and e-commerce platforms, should start at the community level. For example, local governments could develop a database of existing women entrepreneurs and facilitate such digital training through women groups (Aama Samuhas) and youth clubs. Providing women entrepreneurs with the right digital skills, such as setting up emails, video conferencing and social media applications, and how to connect their business to e-commerce platforms, will help them grow as resilient and successful entrepreneurs.