How Webb Fontaine helped Nepal navigate trade transformation

In collaboration with Webb Fontaine and supported by the World Bank, Nepal embarked on a digitalisation journey in May 2019 to modernise its trade infrastructure.

Through the implementation of the Nepal National Single Window (NNSW) project, Nepal significantly streamlined international trade processes, expanded digital services to 27 governmental agencies, and achieved an 80% transition to electronic payments, demonstrating tangible improvements in efficiency, transparency, and user adoption.

The background

Nestled amidst the towering peaks of the Himalayas, Nepal boasts a rich history of trade that spans centuries. As a landlocked country bordered by trade giants India and China, from which 90% of its international trade originates, Nepal boasts a strategic geographical location. Over the ages, Nepal's trade has been profoundly influenced by a tapestry of diverse cultures, economies, and geopolitical dynamics, shaping both its economic landscape and societal development.

In May 2019, with the backing of the World Bank, Nepal embarked on a transformative journey toward digitalisation, marking a significant milestone in its trade evolution. Through a collaborative effort involving 49 stakeholders from both public and private sectors, a comprehensive two-year implementation plan was set into motion, supplemented by a five-year support commitment. This initiative, driven by Webb Fontaine, aimed to modernise Nepal's trade infrastructure and enhance its competitiveness on the global stage. With its official launch in February 2021, the project signifies a significant leap forward in Nepal's journey toward a more streamlined and responsive trade ecosystem.

 

 

The action

Central to the project’s execution was the implementation of the Webb Single Window platform, locally known as the Nepal National Single Window (NNSW). Designed as a cornerstone of Nepal's government digital transformation agenda, NNSW seeks to revolutionise international trade services by introducing digital efficiencies that transcend traditional bureaucratic hurdles. The platform aimed to achieve several objectives:

 

  1. Reduction of time and cost: By streamlining processes and eliminating redundancies, the project aimed to facilitate quicker and more cost-effective international business transactions.
  2. Harmonisation of government services: Through integration and standardisation, the project sought to harmonise the delivery of governmental services across various ministries and agencies.
  3. Enhancement of global competitiveness: By fostering transparency and efficiency, NNSW aimed to bolster Nepal's global competitiveness and attract foreign investment.
  4. Improvement of citizen's quality of life: By simplifying procedures and reducing bureaucratic hurdles, the project aimed to enhance the overall quality of life for Nepali citizens.

 

The implementation unfolded in three distinct phases, with each phase progressively connecting stakeholders and expanding the platform's reach. By October 2021, Phase 1 had connected 18 stakeholders, followed by another 18 in Phase 2 by March 2022, and finally, 13 stakeholders in Phase 3 by June 2022. With the project now in its support phase until 2026, continuous efforts were dedicated to refining and enhancing the platform's functionalities.

The results

The partnership between Nepal and Webb Fontaine has yielded remarkable results, demonstrating tangible improvements in the efficiency and effectiveness of trade processes. Through the implementation of the Nepal National Single Window (NNSW) project, several key achievements have been realised, underscoring the transformative impact of digitalisation on Nepal's trade landscape.

Firstly, NNSW has significantly expanded its scope, providing 45 types of digital services to 27 governmental agencies across 12 ministries. This broad range of services streamlines bureaucratic procedures, reducing the time and cost associated with international business transactions. By harmonising government service delivery, NNSW has enhanced transparency and facilitated smoother interactions between stakeholders, bolstering Nepal's global competitiveness.

In terms of volume, NNSW has processed an impressive 468,000 digital services catering to Nepal's international trade community. This translates to over 1.3 million products across 3.5 million transactions, with an average of 500 services processed daily. Such robust transactional activity underscores the platform's efficacy in handling the complexities of international trade, fostering smoother and more efficient trade flows.

Furthermore, NNSW has garnered significant traction within the business community, with over 8,500 companies and 10,000 users actively utilising the platform. The widespread adoption of NNSW highlights its relevance and utility to Nepal's business ecosystem, empowering stakeholders to engage in international trade with greater ease and confidence.
Moreover, the transition to online payment methods has been remarkable, with 80% of payments within NNSW now conducted electronically. This shift not only enhances convenience for users but also contributes to greater financial transparency and security within the trade ecosystem.

Additionally, capacity-building efforts have been instrumental in equipping users with the necessary skills to leverage NNSW effectively. Through collaborative training initiatives led by Webb Fontaine and Nepal Customs, over 3,000 users have been trained across more than 2,500 sessions conducted both in-person and online. This investment in human capital ensures the sustainable utilisation and optimisation of NNSW's functionalities, empowering stakeholders to maximise its benefits.

Overall, the results achieved through the partnership between Nepal and Webb Fontaine underscore the transformative potential of digitalisation in facilitating trade facilitation and driving economic growth. By harnessing technology to streamline processes, enhance transparency, and build capacity, NNSW has emerged as a cornerstone of Nepal's trade infrastructure, paving the way for a more efficient, inclusive, and resilient trade ecosystem.

80%

of payments within NNSW conducted electronically

10,000+

users from 8,500 companies using the system

3.5 milion

transactions processed

27

governmental agencies across 12 ministries

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