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Introduction
NATIONAL
CONTRIBUTION REPORT
Beyond Short-
Term Profits
Nurturing People
Process Excellence
& Governance
Planet & Society
Our Associates
NATIONAL CONTRIBUTION REPORT 87
Axiata Group Berhad | Sustainability & National Contribution Report 2016
Economic and Financial Contributions
Ncell contributed USD662 million in
Gross Value Added (GVA) to the Nepal
economy in 2016 (see Figure 1). This
comprised direct operational contributions
of USD379 million, indirect operational
contributions of USD134 million, capital
investment contributions of USD27 million
and productivity contributions of USD123
million. The total GVA of USD662 million
was derived from Ncell’s total opex and
capex of USD196 million and USD61 million
respectively, and the 8.4% increase in the
mobile penetration rate. Every USD1 spent
by Ncell in Nepal through its operations
and capital investment translated into
USD2.3 in GVA in 2016.
USD123 million
USD27 million
USD134 million
USD379 million
GVA by
productivity
GVA by capital
investment
Operational indirect
and induced GVA
Operational
direct GVA
57%
20%
19%
4%
USD662
million
Figure 1: GVA contribution to Nepal’s
economy 2016
Investing and Innovating for the Long
Term
Ncell made capital investments totalling
USD61 million in 2016. With USD34 million
invested in Nepal, based on the assumption
that 55% of total capital investments
were made within the country, USD25
million GVA was generated and 17,850
jobs created. Capital investment plays a
significant role in enhancing the company’s
competitiveness and contributing to
Nepal’s economy.
Contributions to Public Finance
Ncell contributed USD369 million in taxes
to the Nepal Government, accounting for
7.7%of the country’s total tax revenue. Ncell
has been recognised by the Government
of Nepal as the largest income taxpayer
of the country in FY2012-2013 and 2013-
2014.
Ncell contributes to the Government
treasury in the form of License Fees,
Telephone Service Tax, Ownership Tax,
Value Added Tax, Withholding Tax, Income
Tax, Royalty, Frequency Fee and Rural
Telephone Development Fund.
Talent Development
Ncell provided 536 direct jobs in 2016
of which 99% of the employees were
Nepalese (see Figure 2). About 24% of Ncell
employees were women. Ncell’s operations
also indirectly supported an additional
89,000 jobs and outsourced a further
1,150. Its capital investments, meanwhile,
supported 17,850 jobs.
Note: As a % of total GVA contribution; Numbers may not balance due to rounding
Figure 2: Total employment impact 2016
17,850
1,150
536
89,345
Supported by
capital investment
Outsourced
Directly
employed
Operations
- indirectly
supported
82%
16%
108,881
Jobs
supported
1%
1%
NATIONAL CONTRIBUTION
REPORT
In Support of the National Agenda
Education and Agriculture are national
priorities under the Nepal Government’s
National Agenda. They were selected
because of the substantial benefits they
would gain from the growth of mobile
connectivity and the use of digital
technology. These areas represent
opportunities for Ncell to play a role in
advancing Nepal’s national goals and to
contribute to society. The following section
provides an overview of these national
priorities and Ncell’s contribution towards
them.