Thomas Prinz, who has served as the German Ambassador to Nepal since September 2021, is nearing the end of his tenure. He embarked on his diplomatic career in 1998 by participating in EU election observation missions. Over the years, he has held various roles within the German Federal Foreign Office and served in German embassies across several countries, with a particular focus on Asia.

Prinz emphasizes that Germany and Nepal will continue to strengthen their partnership, rooted in shared values such as democracy, individual freedom and a commitment to building a just and equitable society that prioritizes environmental conservation and climate action. The two nations have fostered a robust relationship over the past 67 years since the establishment of diplomatic ties in 1958. Development cooperation began in 1961, and Germany has since become one of Nepal’s key trading partners. In this context, Kamal Dev Bhattarai and Pratik Ghimire of ApEx sat down with Ambassador Prinz for an interview. Excerpts: 

Can you share your overall impression of Nepal?

Nepal is a great country with wonderful people—very welcoming, very open and very friendly. It has always been a great pleasure for me to work with Nepal and Nepali counterparts. Nepal has such a diverse culture, with many different ethnic groups, including the Newari culture, as well as indigenous and tribal cultures in the valley and up in the mountains. It’s a fantastic place.

What is the one thing you will miss most about Nepal?

It’s indeed the friendliness of the people. Recently, I had a guest from Germany here, and she has traveled to various countries in this region. She said it’s so nice coming to Nepal—such a friendly and welcoming culture. People are always smiling on the streets, in taxis and at the airport. That is really something that touches me, and I will always keep that in my mind and remember it.

How do you see the current state of Nepal-Germany relations?

We have a very friendly bilateral relationship. We do not have any problem whatsoever. We are very good partners in many international matters, and we coordinate well. The way we conduct our development cooperation in Nepal is very much appreciated by the Nepali government. So, all in all, I would say we have extremely friendly relations. And that’s one reason I always feel pleasure working here in Nepal.

Do you think Nepal-Germany relations could have expanded further, considering past political engagements?

There is a problem on both sides. For Nepali politicians and decision-makers, Europe and Germany are far away. And the same is true for the German side. Nepal is, hence, not always in focus. It is up to us, the diplomats, to bring these countries into the focus of our decision-makers and try to engage top-level politicians in personal meetings. It happened last year when the President of Nepal Ramchandra Paudel made an official visit to Berlin and was received by the Federal President of the Federal Republic of Germany. But of course, we would like to see more of these developments. As I said, the problem is on both sides. During Covid, there was no travel, then we had Russia attacking Ukraine, Brexit and all these issues were consuming politicians in Europe. So, in a way, it's understandable that Nepal was not in focus.  

Another problem that hinders progress is the high fluctuation of political decision-makers in Nepal. Since I have been in Nepal, I have met three Prime Ministers, six Foreign Ministers and five Home Ministers. This rapid turnover of political personnel makes it difficult to build long-term relationships. I am sure that if Nepal had more stability, it would also be easier to establish more personal contacts.

Is there a one-way dynamic in Nepal-Germany relations, where Germany has been providing assistance for seven decades while Nepal has not engaged in proper negotiations?

Indeed, I sometimes discuss with my European colleagues how we could make decision-makers in Nepal more aware of the opportunities they could find for closer cooperation with Europe. We do not have this strategic view in the region, like, for instance, the direct neighbors have or maybe also outside big powers have. We are more interested in long-term business-making, civil contacts and so on. That is why I think they could take a closer look at Europe in some areas. 

We offer some business opportunities that others don’t. Even if others do offer the same, why not go with the Europeans? When you choose European partners, you are not in this, let’s say, political competition between northern and southern neighbors and so on. Therefore, sometimes I think Nepali decision-makers could take a closer look at what Europeans have to offer.

What is Germany’s Indo-Pacific outlook, and how does it view South Asia? How is Germany engaging with the region, and where does Nepal stand?

We have an Indo-Pacific guideline—or strategy, you could say—which was adopted by the German government about five years ago, and it clearly states that we want to strengthen our relations with democratic states and governments in the region. And Nepal is definitely one of those countries. So basically, the decision is to have a stronger footprint in the area and to closely cooperate with democratic countries. The fact that we revoked our decision to end our bilateral development cooperation is part of those guidelines. The fact that we are still very active here with our development cooperation is based on our commitment to strengthening democratic countries in this region.  

Regarding Germany’s outlook on South Asia, I have to say it is very much dominated by Germany-India bilateral relations, as India is the dominant country in the region. We have very strong trade relations with India, with cooperation in universities, research and so on. That largely shapes the perspective of German decision-makers, and I have always been busy trying to convince politicians, who visit South Asia and go to India to also look across the border and see what is happening in Nepal. When we have trade fairs in India, I try to convince our Chamber of Commerce in Mumbai to encourage German participants to take a look at Nepal. That will take some time, but I am quite optimistic that with India's growth, we will see some positive effects in Nepal too.

The Nepali government claims that the current environment is favorable for investment. How do you view Nepal’s overall investment climate from a German perspective?

The investment climate for foreign investment in Nepal is actually not very good or welcoming. We see minor improvements, and there is willingness on the part of the government to improve things, but we have to see how it plays out on the ground. The announcements we have heard so far are okay, but we need to see how they translate into action. How difficult it is to get a work permit or transfer money—these factors hinder foreign investment here.  

The fact that when you open a business here, you are always a minor partner in a joint venture. This is very difficult for European companies because they have their own compliance practices, and when they can’t guarantee these compliance practices, it becomes very difficult for them to invest. So, all in all, I would not consider Nepal a foreign investment-friendly country. I hope that will change, and I trust the government’s intention to improve the situation, but to convince investors that real change is happening, we need to see concrete improvements on the ground.

Germany is experiencing a labor shortage and has eased visa regulations to attract workers from countries like Nepal. What are the latest developments on that front?

We have changed our immigration laws recently and have become much more open to receiving foreign labor. Last year, we had a change in immigration law, and we are now openly welcoming skilled labor from abroad. It has become very easy to immigrate to Germany if the candidate brings any kind of skills with them. If you have a master's degree from Nepal or have already been studying in Germany and obtained a degree from a German university—whether in engineering, IT or any other field—you can easily apply for a job in Germany. If you find a job, we will issue the visa. We even accept people who come to Germany without having a job, as long as they have a degree and want to search for a job in Germany. In such cases, we can also issue a visa.  

We also have one way to migrate to Germany for unskilled labor, which is through the Nepal Secretariat for Skills and Training, an institute in Kathmandu. Through this program, we offer a one-year German language training course. Once they pass the course, they can go to Germany for vocational training, which is paid from the very first day. They are treated equally to Germans who undergo vocational training in Germany, receiving the same health insurance and social security benefits. Currently, we have about 130 Nepalis in this program already in Germany, and about 500 in the preparatory course in Kathmandu.  

So, besides skilled work, this is another way to go to Germany. When they complete this three-year vocational training, they graduate with a diploma and can then stay in Germany and work. These are the immigration pathways we have opened, and as we can see, many Nepalis are already following them. We are optimistic that we can increase the number over time.

Have you identified any potential areas where Nepal and Germany can expand further?

There are some traditional areas of cooperation, and we should continue working on them in the future. I am happy that we have now reached pre-covid numbers of German tourists coming to Nepal, and in this area, we will see further development. I could imagine, for instance, adding other groups of tourists, such as bicycle tourists or female trekking groups—these are areas where I see potential. Cultural groups also present opportunities.  

But beyond these traditional areas of cooperation, I see huge potential for Nepal in the field of IT services. Nepal already has a very vibrant IT sector, and I can only encourage decision-makers to put more effort into further developing it. There is tremendous demand for IT services, including programming, AI and algorithms essential for modern society. We have successful programmers here in Nepal, and those in Europe who are already working with Nepali programmers have had very positive experiences. So, I hope that in the future, this cooperation will create even more opportunities.

How do you see Nepal’s recent engagement with China?

China is one of Nepal’s two major partners, and whoever is in government in Nepal must engage with both. That will never be easy. Nepal has a major partner to the north and another to the south, and geography cannot be changed. For every Nepali politician, decision-maker and foreign minister, it is absolutely necessary to maintain good relations with both. The key is to balance these relationships—to cooperate with both without losing the ability to make independent decisions. It is crucial for Nepal to remain in a position where it cannot be blackmailed or forced into actions against its interests by either side.  

My recommendation would always be to follow the policies that various governments have adopted to avoid falling into a debt trap from any side. Nepal is a sovereign country and can engage with both neighbors. Several governments have demonstrated the ability to find an equilibrium and manage these relationships effectively. Moreover, both of Nepal’s neighbors have an interest in the region’s smooth development—nobody wants instability. Nepali politicians have experience in managing these dynamics and understand how to deal with two powerful neighbors.

What are your suggestions to our politicians on Nepal’s development?

I would say Nepal should focus on its strengths. Tourism, for instance, could be an area to build on. Currently, foreign tourists spend around $20 per day in Nepal, and efforts should be made to increase this figure, positioning Nepal as a more high-end destination. Another area where Nepal is strong is in IT services. The government should do whatever it can to support institutions that train IT engineers and make it easier for the sector to develop. It should also facilitate foreign companies to set up shop in Nepal to take advantage of the potential offered by these young engineers. Those would be my recommendations.