Economy
Invest in Bangladesh: PM Invites South African Business Leaders
In a compelling call for collaboration, Prime Minister Sheikh Hasina of Bangladesh extended an invitation to South African entrepreneurs to invest in her nation’s ambitious journey towards becoming a trillion-dollar economy and a fully developed smart nation by 2041. Speaking at the Bangladesh Trade & Business Summit in South Africa, the Prime Minister emphasized the country’s progress toward prosperity and extended a warm welcome to potential investors. She assured that investment in Bangladesh is secure, underpinned by consistently high returns and a business-friendly atmosphere.
Bangladesh’s commitment to facilitating business operations was emphasized, backed by organizations such as the Bangladesh Investment Development Authority and the Bangladesh Securities and Exchange Commission. The Prime Minister outlined the burgeoning opportunities in Bangladesh’s capital market and the country’s proactive approach to long-term financing in the era of the Fourth Industrial Revolution.
Prime Minister Hasina underscored the open Foreign Direct Investment policies in Bangladesh, particularly noting the allowance for 100 percent foreign ownership, liberalized industrial policies, a 15-year tax exemption, and streamlined services. The Prime Minister highlighted the underexplored potential of bilateral trade between Bangladesh and South Africa, expressing optimism about enhanced collaboration, especially in sectors like ICT, electronics, textiles, tourism, and heavy industry.
She thanked the significant Bangladeshi population in South Africa for their contribution to the economy and urged further investments. Plans for a joint business forum between key business chambers of Bangladesh and South Africa were also revealed.
Prime Minister Hasina stressed that the heart of Bangladesh’s strength lies in its people, especially its skilled youth population. She acknowledged South Africa’s growing urbanization and economic growth as favorable conditions for expanding Bangladesh’s exports, particularly in sectors like textiles, ready-made garments, pharmaceuticals, and agriculture.
The Prime Minister highlighted Bangladesh’s ‘Look Africa’ policy and its exploration of diplomatic and economic avenues on the continent. She revealed Bangladesh’s pursuit of natural resources and raw materials from African nations to fuel its growing industries.
Concluding her address, Prime Minister Hasina expressed confidence in Bangladesh’s progress and commitment to the path of the Fourth Industrial Revolution. Her visionary appeal underscored the mutual benefits of a strong partnership between Bangladesh and South Africa, fostering shared growth and prosperity.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
