The Bhutanese Leading the way.
In a discussion at Bhutan Innovation Forum, four key speakers explored the future of investment in Gelephu Mindfulness City (GMC). The conversation focused on the types of capital needed to build infrastructure and support businesses in the GMC.
Cyrus Hiramanek, Managing Director at M. Klein & Company, highlighted that investors typically seek scalable opportunities with long-term returns. He noted that both infrastructure and corporate capital are essential for the GMC’s growth. “Investors usually look for opportunities that can grow, provide steady returns over time, and last a long while. When it comes to investing in the GMC, they have specific needs that differ from those in regular stock markets. For example, sovereign funds will consider both the potential for profit and any government-to-government partnerships.”
He emphasized that GMC has two big advantages. First being close to the large market in India and second it has access to clean energy. These aspects are really important for attracting investors and making the GMC an appealing option.
Amarit Charoenphan, Managing Partner at Aim Ventures, discussed the growing trend of mindful capital. He stressed the importance of supporting entrepreneurs in Bhutan while considering their well-being. He suggested that venture capital could evolve to focus more on nurturing founders, rather than just seeking high returns.
John Pfeffer, Founder of Pfeffer Capital, shared his insights on investing in Bhutan. “I primarily invest our own capital and do not manage funds for others. Regarding investment in Bhutan, there are several compelling reasons: abundant renewable energy sources like hydro and geothermal, a strong relationship with the large Indian market, and the GMC’s potential as a catalyst for national reform. Additionally, Bhutan’s impressive leadership, particularly under the king, supports this vision.”
As for how to invest in Bhutan, he shared that it’s challenging. Foreign direct investment (FDI) in renewable energy and data centers offers significant opportunities, but navigating Bhutan’s capital controls can be difficult. “Currently, foreign investors cannot directly access the Bhutanese stock market, which complicates participation. However, we’re at a crucial turning point for investment in Bhutan, with promising developments on the horizon. I see a need for more investment avenues to further engage with Bhutan’s potential,” he added.
Chencho T. Namgay, Director of Investments at DHI, emphasized the need for infrastructure capital to support the GMC. He suggested that initial funding might come from philanthropic organizations and multilateral agencies, which could see value in GMC’s sustainability goals.
Hiramanek agreed, noting that sovereign wealth funds could also be interested in investing, provided the vision for GMC is clearly communicated. He suggested that branding Bhutan as a hub for sustainable investment could attract more capital.
Throughout the discussion, speakers highlighted the potential for innovation in Bhutan. Charoenphan mentioned the country’s ability to leapfrog outdated technologies, especially in areas like AI. He noted that building a strong marketing strategy to showcase Bhutan’s offerings could attract more attention from global investors.
He also said instead of future things and tech current businesses could be helped to go global.
Pfeffer added that creating a new currency backed by gold could help facilitate investment within the GMC. He expressed hope that local businesses would benefit from this new economic framework.
