Submit your Article

Established in 2009, eSewa is Nepal’s pioneering digital payment service provider. In the last 14 years of its operation, eSewa has remained at the top of the business offering a range of digital payment services that have helped change the lives of many Nepalis. ApEx talked to the company’s CEO Jagdish Khadka about the current state of the mobile wallet business, challenges, and eSewa’s plans. Excerpts: How do you observe the changes that have occurred in fintech in Nepal since eSewa started its services 14 years ago? eSewa started its journey in 2009. But there were a few rules and regulations for the online payment system at that time. In 2016, Nepal Rastra Bank (NRB) implemented guidelines related to payment service providers which paved a clear path for digital financial services in the country. Since 2016, there have been several developments in the realm of digital financial services. The number of digital transactions has increased tremendously. Recently, NRB has stated that digital payment has decreased the cost of disposing of older banknotes. Similarly, fintech has helped propel the inclusion of underbanked and unbanked people in the last few years. NRB's latest report states that there are around 16.75m active digital wallet users in Nepal. These days, people can carry on with their lives even if they don’t carry banknotes, which is the biggest change that we are seeing today. Likewise, the number of players in the fintech sector has also grown increasing the competition which has fostered innovation in the market. How is eSewa’s mobile wallet business currently? What is the market share? Only five percent of the national economy has been digitalized to date. And in that, we hold around 75 percent of the digital transaction which means eSewa has been the industry leader. This has benefitted not only our merchants and agents but also the end-users. Our initiatives such as raising digital payment awareness of Nepalis, educating the users and agents, and motivating merchants to get integrated into digital payment have contributed a lot. It is said that there is less profit margin in the mobile wallet business. What is the case with eSewa?  The entire digital business works with unit economics meaning volume is needed to thrive in business. This is the only way mobile wallets have survived worldwide and so similar is the case in Nepal. The more services companies integrate, the more users they can have. Similarly, the more merchants they have, the more business they can get The growing number of mobile wallets in Nepal has raised questions about their survival. Do you see the prospect of mergers and acquisitions between digital payment service providers? If the existing players have inefficiency, there will always be room for betterment. This means, there is always a space for new players in the market. As I said earlier that only five percent of the economy has been digitized, all are contributing to the journey of digitalization and the players are contributing in their own way in the economy. Given this situation, companies can survive if they can perform better. How do you see the future of fintech companies in Nepal? Will they be able to get foreign direct investments (FDIs)? NRB recently introduced a policy where now payment service providers and payment service operators can have up to 15 percent of their paid-up capital as FDI. So, fintech companies can bring FDIs. eSewa is also doing great in remittance. Though eSewa remit doesn’t come under my watch, what I can say is in a short period of time, we are in second position in Nepal in terms of bringing remittances. How do you see the scope of the field of digital finance from a career development point of view? Fintech has a great future. There will be no industry that will be impacted by technology. Everything is getting integrated with technology. There is still much to be done in fintech in Nepal. We are just in payment systems but there are many aspects including credit, savings, lending, insurance, investment, and finance that are yet to be developed. I think fintech and digital platforms will be the most efficient channels in this regard in the future. Similarly, there is a big scope for the integration of artificial intelligence (AI) in fintech. Many new things will come up and career prospects are definitely good in this field. We have been hearing about the quality of customer services of eSewa lately. How is the company working to better handle the complaints of customers? eSewa has come up with new app features to serve customers better. We get around 11,000 phone calls per day. Our front-line staff are there to attend calls to solve issues of the users. Recently, we integrated an in-built feature in our app which allows users to note their queries so that they don’t have to call us over the phone. We are working more on it. They can lodge their complaints and check whether the problems have been solved or not. We are also planning to introduce a chatbot with instant customer service in the future.  

The Indian automobile giant Tata Motors has been in Nepal for over four decades now. The company has been regularly launching new vehicles in the Nepali market. Recently, Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd, was in Kathmandu for the launch of Tata Nexon EV Max. ApEx caught up with Chandra to talk about Tata’s plans for Nepal, and market prospects of electronic vehicles (EVs), among other topics. Excerpts: Tata Motors has a very special presence in Nepal. What significance does the market hold for Tata? It’s been four decades since we are present here. Starting with commercial vehicles, it’s been 30 years since we have been in the passenger vehicle segment in Nepal. Just our presence consistently for 40 years with a very strong longtime dealer partner Sipradi Trading has made it possible for us to really make a difference with a very high market share in the commercial vehicles segment. At the same time, last year we held 50 percent market share in passenger vehicles also. For Tata, it has been quite a journey in the passenger car business from selling more multipurpose vehicles (MPVs) and multi-utility vehicles (MUVs) to now selling personal cars. This has been one of the key transitions for us in Nepal over the past three years. The other big transition is happening in the electric vehicles (EVs); the four-wheeler EV market in Nepal is unfolding in a similar manner to India which is also very important for us. We will be highly committed to this market. We will not only bring products that will look attractive but also take the responsibility of the electrification of the automotive market and supporting what the Government of Nepal is also trying to do. We have all the wherewithal in terms of the range of products for the Nepali market. At the same time, we are also committed to developing the ecosystem which is more important. Besides charging stations, we have also established an EV learning center here. Similarly, there is a repair center for batteries; we have such facilities, one each in India and Nepal. We want to bring new things to this market where there are very discerning customers and people who are ready to transition to new technology. In Nepal, the transition to EVs has happened in just two years. This kind of transition does not happen so easily in the world. The automobile market in Nepal is going through a slump due to last year’s restrictions on imports and the rise in interest rates. How have these factors affected the business of Tata Motors in Nepal? The ban, which lasted for eight months, caused a 60 percent decline in vehicle sales. Typically, about 12,000 vehicles are sold in Nepal in a year. After the import ban, the number of sales went down to about 4,000-6,000. However, there has been a 30 percent increase in our EV sales. The Tata Nexon EV Prime and the Tata Tigor EV played a key role in our success in the EV market last year. Moving forward, the Nepal government is also providing a congenial environment for EVs to get promoted, which is going to further support the growth of EVs and our portfolio. Tata Motors is currently in Generation 1 EVs and is said to be rolling out Generation 2 EVs. When will the company roll out the Generation 2 EVs and how different will they be from the current ones? We have followed a very evolutionary approach to bringing products, which means that when the market is not mature and the volumes are low, the consumer mindset is not in favor of a certain technology. This is where we start small. This is why we started with Gen 1 vehicles which are conversion products. It has worked well because there was a familiarity with that kind of product in the market. As battery prices have declined in the international market, there is a greater acceptance of EVs. Our Gen 2 will be a major intervention in the current Internal Combustion Engine (ICE) architecture where we will create orthogonal spaces in the floor of the vehicles to accommodate more batteries. This will increase the range and even the exterior look of the vehicle will change. Similarly, Gen 3 vehicles will be pure EVs, where there will be no possibility of making petrol or diesel vehicles on that architecture. One product that we have already showcased is Tata Avinya. So, when will Tata Avinya be commercially launched? We had already mentioned in our auto expo that Avinya will hit the market by the end of 2025. This is what we are targeting for the Indian market. The Tata EVs, first through Nexon and now with the Xpress T—are making strong inroads into the Nepali EV market. How do you see the future of Tata EVs in the Nepali market? I think it is very important to hit the right balance of things and Nexon EV has been able to do that. While conceptualizing the Nexon EV, we asked ourselves whether we should give it a higher range. Higher range means higher cost, right? What if I want to keep my prices low, come with a lower price? Then you’ll have to reduce the range and then range anxiety starts. So, you have to bring the balance of range price features in a manner that is acceptable to a customer. The consumers had already accepted the aspirational product Nexon in the ICE world. Also when it comes to the EV world, the price is not twice of an ICE but just 25-30 percent more. And with all the features, customers have loved it. And I think with all the support that the government was giving in terms of reduced duty structure, it was aggressive on the price also. So, I think it has worked well. And that’s why a majority of electric vehicles sold in Nepal are Nexon EV today. But I would also say that the charging infra that our partner has put on the highway, which is about 20 charges that as a combination was important to give confidence to the people that they can not only be used within the city, but they can also go for outdoor sea experiences. So, I think that also has a major role. When do you think EVs will be the mainstream in the South Asia region? In our part of the world, EVs are already mainstream. It is because EVs currently have over 50 percent penetration rate. EVs are more feature-rich vehicles and are a pleasure to ride. The vehicles have low operating costs. Earlier, the range of EVs was an issue of big concern for customers. But we have resolved the range issues with products such as Nexon EV Max. Will a market like Nepal continue to get ICE vehicles? While you would like to change faster, the world changes at its own pace. Manufacturers can promote and bring attractive products, but customers will take their time to adopt new things. Some of them are fast adopters, some are late adopters and later the majority will come. So, it will go through the adoption phase and value chain preparation for new technology. There will be a period when both technologies will co-exist. Till there is a demand in the market, we will serve our customers in both the ICE and EV categories.

There are around 30,000 individuals in Nepal currently living with HIV/AIDS. And they face many problems. Anushka Nepal from ApEx caught up with Khagendra Khadka, president of the National Association of People Living with HIV/AIDS in Nepal (NAP+N), who has been living with the infection for 26 years, to talk about issues they face and how they can be tackled. What are the issues that people living with HIV/AIDS face in Nepal? People living with HIV/AIDS face discrimination every day. It’s the major reason behind every issue we face. There are people who have been forced to resign after a workplace finds out about their HIV status, there are children who have been outed from school when news gets out about their infection, and even medical professionals are reluctant to treat HIV infected people. So clearly the issue here is peoples’ perception towards us that makes our daily life difficult. The government has provided us with free medicines and antiretroviral therapy (ART) so not being able to get necessary treatment has never been an issue. Our biggest problem is not having the opportunity to lead a good life as many are deprived of jobs, education, and fair treatment. Worse, there are no laws that back us up. What do you think can be done to change society’s perception? I think the media plays a vital role in this matter. In the past, around six-seven years back, Nepali media covered several issues related to HIV/AIDS. There used to be advertisements in television and radio stations that kept people informed about HIV infection and its transmission. There are many people who have changed their perception towards the infected and one of the reasons is the advocacy through Nepali media. But now we don’t see that anymore and people fear being around anyone with HIV infection due to lack of information and awareness. Has Nepal been able to prevent HIV infection from a mother to her child during/after child birth? There are around 84 places in Nepal that follow the Prevention of Mother-To-Child Transmission (PMTCT) program. So there are hospitals in every part of Nepal that’s well equipped to deliver a child without transmitting the infection from the mother. The number of mother-to-child transmission has also been decreasing. But there is a problem. Many health professionals, especially in rural parts of Nepal, refer HIV infected pregnant women to other hospitals. Although these hospitals are well-equipped to handle the delivery, they try to avoid such cases out of fear of infection. Some also don’t sterilize all the equipment used during delivery. This is not only slowing the progress we expect from this program but also putting the lives of the mother and her child in danger. Nepal has set a national target to reach 95-95-95 testing and treatment target (that is 95 percent of people living with HIV know their HIV status, 95 percent among those who know their status initiate treatment, and 95 percent of those on treatment are virally suppressed) by 2030. What’s the progress so far? We are on track of achieving that goal. It’s estimated that Nepal has 30,000 people with HIV/AIDS, out of which 95 percent are aware of their HIV status. It’s the same with the treatment. Among the infected, 95 percent of them have initiated treatment for HIV. But we are lagging behind on knowing if the ones who have initiated treatment have their viral load (the amount of virus in an HIV infected person’s blood) in check. According to the recent data we have, only 67 percent of the ones getting treatment have been virally suppressed. But we still have seven more years and I believe it’s possible to meet the 95-95-95 target by 2030. Do you think the Nepal Government has been doing enough to meet this target? The number of people who continue their treatment is directly related to the society’s perspective towards the infected. Out of fear of being judged, many people avoid going to ART clinics or take medications. It’s been nearly nine years that we have been demanding the government to pass a bill that will protect the rights of HIV infected individuals. So no, the government has not been doing enough. Till now, they have given us free treatments and insurance policies for the infected and his/her family. Besides that, it’s mostly organizations like ours that have been working to meet the target. There are several things the government can do to encourage people to continue their treatment. For instance, the insurance policy that they provide has encouraged many people to get themselves tested. But we haven’t witnessed anything else besides that. I think the government needs to put more effort into finding new ways to push the infected to continue their treatment. That also includes passing the bill.

The Kathmandu Valley’s weather has been quite unstable lately. Capricious weather patterns, marked by a sudden rainfall and dip in temperature, have led to many people suffering from common cold, cough and fever. Anushka Nepal from ApEx caught up with Dr Subodh Sagar Dhakal, chest and critical care specialist, to know the cause behind these illnesses and the ways to stay healthy amid unpredictable weather. Has the weather anything to do with people falling sick? Weather change is one of the factors. But it’s not just the rain and cold conditions that cause people to catch a cough, cold or viral fever. These illnesses are also common during other times. In fact, the risk is even higher during spring, since the winter inversion layer (inversions trap a dense layer of cold air under a layer of warm air) forms in the Kathmandu Valley. Imagine the valley to be a bowl. The inversion layer acts like a lid and pollution is trapped within that layer. So, more than the change between hot and cold weather, it’s the accumulated pollution we see in Kathmandu that’s causing these health issues. In a way, the rainy days we have been witnessing lately are good. It minimizes air pollution. As for the rapid change in temperature, it’s just that our body might take some time to adapt to the change. But this should not cause much health issues, unless you have weak immunity or have been drenched in rainwater. Some claim that they haven’t fully recovered from the cold for weeks. Everyone believes it’s because of the unstable weather. What do you think is the reason behind this? More than the weather itself, it’s the nature of the virus that prolongs the symptoms. We call that post-viral syndrome. There are two reasons for it: 1) The nature of viruses have changed in the past few years. 2) Lingering side effects of medication might make you feel weak and lethargic, which also comes under post-viral syndrome. A few years back, a viral infection could be cured within seven days. Now, it takes around 14 days. Although you might stop getting a fever, the other effects of this virus will not go away for around four to six weeks, unless you take proper medications. Weather changes only trigger the viral infection. What should we be aware of when it comes to these health issues and medications?  We live in a country where anyone can buy antibiotics. And there are people who get the strongest dose possible and have it if they have any symptoms of cold. We should avoid doing that. You do not need medicines, unless your body shows warning signs like unusual headaches, high fever, lethargicness, etc. Even when you are displaying those signs, the first thing to do is go see a doctor, not have medicines that haven’t been professionally prescribed. If symptoms are mild, taking anti-allergens and steam should be enough. But do not add any kind of mentholated gels or oils (for example, Sancho). That will do more harm than good. Are people with existing respiratory conditions at more risk of developing illnesses due to weather change and pollution? Yes, people with existing respiratory conditions need to be more careful. Pollution in this season has a lot of pollen, which might worsen their health conditions. People with asthma, or anyone who is under heavy medications are at higher risk and in most cases, these individuals easily get infected with pneumonia. It’s the same for people with existing heart and kidney conditions. Pregnant individuals, anyone below five years, and above 65 years of age should also be careful. Also, many people take morning walks as a way of staying healthy. But it’s the morning and evening time when the air pollution is at its worst. It’s best to avoid going out between 5 and 10 in the morning, and after 3 in the evening. But that’s not possible all the time, but you could at least avoid crowds and wear a mask when you are outdoors. What other precautions can we take?  A lot of people neglect the damage air pollution can do to one’s health. The pollution we see in Kathmandu is so harmful that it can even affect our bloodstream. So one should be wearing a mask not just as a Covid-19 precaution, but everytime they are outside. Secondly, avoid visiting hospitals unnecessarily. It’s one of the most infected places you can visit. If someone you love or know is admitted, call or leave a text. If you have a weak immunity, you are at risk of catching an infection. Also, viruses these days have a high transmission rate. You might have also noticed that if one family member gets infected, everyone falls sick within the next seven days. So try maintaining one meter distance from a sick person. And wear a mask whenever you are around a sick person. The best thing to do is get a flu shot, that not many are aware of. It will not prevent you from getting sick, but will help avoid the severity of the infection.