local-business
Lack of financing, policy support causes of weak startup growth in Bangladesh: Speakers
Speakers at a seminar said startups are doing relatively well but the success rate is not satisfactory due to various problems including regulatory issues like lack of access to finance, age-old valuation process, lack of private equity, and incubation.
The seminar on “Journey of CMSMEs from startup to scale up: prospects and challenges” was organised by Dhaka Chamber of Commerce & Industry (DCCI) on Saturday in the capital.
DCCI President Rizwan Rahman said startups can be a great economic enabler for Bangladesh but a start-up-friendly ecosystem in the country has not been substantially equipped.
In the Global Startup Ecosystem Index 2022, Bangladesh ranks 93 out of 100 countries.
He said that the Startup index also claimed dearth of financing and policy support are root causes of weak startup growth in developing economies including Bangladesh.
He also said Bangladesh currently has over 1200 active startups and around 200 new startups join the industry every year, which made around $800 million in investment and 1.5 million in formal and informal jobs in the last decade.
The government has meanwhile taken various initiatives to strengthen the startup ecosystem, including establishing a venture capital firm, 28 high-tech parks, data centers as well draft rules for small-cap company 2022 by BSEC.
Taking this urgency of a smooth ecosystem into account, the country needs to create International standard startup incubation centres, startup pioneers, expert consultation, startup exhibition, networking, mentor development, low-cost financing options with necessary regulatory reforms including Industrial policy, Export policy, Fiscal policy, Foreign Exchange Regulation and SME policy and others, said Rahman.
Fahim Ahmed, CEO, Pathao presented the keynote paper. He said that startups are enabling the digital transformation of Bangladesh.
“Startups are helping SMEs by creating market access, accelerating Fintech, adopting technology, and enabling mobility. The regulatory framework, policies, limited human capital, technology, finance, and accessing the international market are some of the challenges for this sector,” he said.
Senior Secretary to the ICT Division Zeaul Alam inaugurated the program as the chief guest, while Dr. Shaikh Shamsuddin Ahmed, Commissioner, BSEC, was present as special guest at the function.
Car importers still unable to open LCs from banks
Despite fulfilling the criteria of 100 percent margin, importers cannot open letters of credit (LCs) from the banks for importing cars, pushing this business to dire straits.
Businessmen said this during the second meeting of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) standing committee on automobile in Dhaka Thursday.
In Bangladesh, cars have long been considered luxury items, and the government has imposed a 100 percent LC margin on importing cars to deal with the dollar crisis. However, in the context of the country's current economic growth, cars have appeared as a necessary item, they said.
"There is no alternative to trucks and pickups for goods transport on the road. These vehicles kept the supply chain running during the height of the Covid-19 pandemic," the businessmen said.
They urged the government to keep cars out of the luxury list and called for incentives for hybrid cars like in other countries.
Read: Automobile industry lacks policy to grow in Bangladesh: FBCCI
In contrast to the global trend, in Bangladesh, the Bangladesh Road Transport Authority BRTA does not register electric vehicles. So, businessmen urged the government to introduce registration policies for electric vehicles.
FBCCI Vice-President and Director in-charge of the committee Md Habib Ullah Dawn said: "During this global crisis, we agreed with a 100 percent LC margin decision, but the banks do not want to open LCs and discourage us through continuously seeking different documents."
Also, the businessmen demanded amending the rule of mandatory driving licence while purchasing a motorcycle, harassment-free issuance of driving licence, specific HS code for an electric vehicle, registration for three-wheelers and sector-friendly policy support.
SWAP, Nagad bring up to Tk5,000 bonus offer
Mobile financial services provider Nagad and re-commerce brand SWAP have launched a new campaign – up to Tk5,000 bonus on sales proceeds.
Under the campaign "Nagad deal-e beshi laav" (a deal with Nagad guarantees higher profit), the customers will get up to a Tk5,000 bonus for receiving the proceeds of sales of old stuff to SWAP through the Nagad app.
The offer will remain valid till November 30, said a media statement Thursday.
As per the offer, the customers will be able to sell their old stuff such as mobile phones, laptops, tablets, and some other products.
The Nagad customers will also be able to benefit from the offer more than once.
Read: Nagad announces up to 22% cashback for electronics, restaurants, and lifestyle products purchase during WC
Tipu Munshi seeks more US investment
Commerce Minister Tipu Munshi on Thursday urged the United States to invest more in Bangladesh while the country could import more from the South Asian nation.
Munshi said Bangladesh has a strong trade relation with the US and there is scope to expand the bilateral bonding to a greater extent.
Munshi made the remarks in a bilateral meeting with a US team led by Arun Venkataraman, Assistant Secretary of Commerce for Global Markets and Director-general of the US Foreign Commercial Service, at the Pan-pacific Sonargaon Hotel.
He said that American investors could benefit enormously by investing at special economic zones Bangladesh is readying. Prime Minister Sheikh Hasina has asked the authorities to set up 100 special economic zones across the country to woo foreign investment.
The commerce minister said Bangladesh is giving special incentives to the foreign investors.
“Bangladesh gives special importance to the US investment. Safety has been ensured for the investors. Bangladesh is emphasising on the skill development in digital commerce,” he said.
Read: Time to invest in Bangladesh, Tipu Munshi tells Nordic countries
While the US is a major market of Bangladeshi garment products the country can be a good destination of Bangladeshi furniture and pharmaceutical products, he said.
Bangladesh needs support from the US in other sectors such as agro-food processing, technology and ICT, the minister said.
Arun Venkataraman said Bangladesh is a vital trade partner of the US. He appreciated Bangladesh’s development, saying that the US will continue to strengthen its relations with the country in the fields of investment, trade and technology.
Bangladesh Bank asks banks to stop ACU transactions with Sri Lanka
Bangladesh Bank has instructed banks to refrain from transactions with Sri Lanka through the ACU system.
The central bank’s Foreign Exchange Policy Department issued a circular today and sent it to top executives of banks.
The ACU is an arrangement through which participating countries settle import payments for intra-regional transactions.
Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka are members of ACU, which has headquarters in Tehran. The central banks of the countries have to make payments every two months.
If any Bangladeshi bank wants to settle a transaction with a Sri Lankan commercial bank, they can do it by ignoring the ACU system.
Nagad announces up to 22% cashback for electronics, restaurants, and lifestyle products purchase during WC
Nagad has come up with an instant cashback offer for the purchase of electronic goods, restaurants, and lifestyle products during the World Cup.
Nagad customers can avail of 22 percent cashback or discount facilities from different 50 brands in the three mentioned categories all across the country on the occasion of the world cup, said a press release issued on Sunday.
The offer under the campaign ‘Payment Cholbe, Bishwa Cup Jombe’ (Payment will continue as the world cup turns exciting) will be applicable for purchases from 20 merchants of electronic goods.
The merchants include Xiaomi Bangladesh, Butterfly Limited, Ryans Computers, Best Electronics, Vision Emporium, Transcom Digital, MK Electronics, Vision, Minister, Vista Electronics, Electro Mart, Electra International, Jamuna Electronics, Excl E-Store, Techland, Dasel, Computer Kitchen, Next Communication, Esquire, and Khan Electronics.
Any customer will be able to get the cashback as per the offer for payment through Nagad app or by dialing *167# (USSD). However, this offer can be availed for purchase from Excel E-Store via only Nagad online payment. The policy of each merchant will be applicable to the offer under this campaign.
In the lifestyle category Nagad customers can buy from Sailor, U-Turn, Qrius, Gentle Park, MS Range Fashion, Smartex, Sports World, Bell Outfitters, Isra Fashion, and Duranta. In this category, Nagad customers can get 20 percent instant cashback or discount.
PM to inaugurate factories, commercial operations in economic zones this week
Prime Minister Sheikh Hasina will inaugurate the commercial operations of 14 industrial units and lay the foundation stones for the infrastructures development of 29 more factories inside the economic zones on Wednesday.
Executive Chairman of the Bangladesh Economic Zones Authority (BEZA) Shaikh Yusuf Harun informed this while addressing a view-exchange meeting organized jointly by the BEZA and the Economic Reporters Forum (ERF) on Sunday.
Among them, commercial operations of four industries at the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) will open for commercial operation. These are Asian Paints of India, Nippon of Japan, McDonald of Bangladesh, and TK Group’s associate Samuda Construction Limited.
The BSMSN was constructed over an area of 30,000 acres of land in Mirsarai and Sitakunda Upazilas of Chattogram and Sonagazi upazila of Feni.
The factory of Double Glazing would also be inaugurated at Srihotto Economic Zone on the day.
Besides, the commercial operation of some nine industrial units in the private Economic Zones would also be inaugurated. Among them the country’s biggest PVC factory.
Read: EPZs saw all-time high export, investment, job growth in FY22: Bepza
In order to go into commercial operation, some $967.73 million has already been invested in some 14 factories while the concerned industry owners informed that they have plans to invest $331.27 million more in those factories.
Harun informed that the Prime Minister will lay the foundation stones of some 29 factories which have already attracted an investment of $610 million, while $1.9 billion more would be invested in those factories.
These industries have already created employment opportunities for some 6,407 people, while another 38,658 jobs would be created in those factories.
The Project Director of the BSMSN Abdullah Al Mahmud Faruk made a Powerpoint presentation on the overall operations and progress of its activities in the function.
Presided over by ERF President Sharmeen Rinvy, BEZA General Manager (Administration) Hasan Arif, and other high officials were present among others. ERF general secretary SM Rashidul Islam moderated the view-exchange meeting.
Evaly back in business: ‘Thank You’ campaign from Oct 28
Evaly is set to resume operation with a ‘Dhonnobad Utshob’ (‘Thank You Festival’) to express gratitude to millions of customers and merchants across Bangladesh.
The platform will start the campaign from October 28 at 10 pm, said a press release from the company.
Popular brands like Walton, Jamuna, Artisan, O'code, Viomi, Samsung, iPhone, One Plus, and Vivo will participate in the Evaly campaign.
Read: Evaly may start sales campaign from Oct 15, Shamima hints
For purchases from the secured platform, customers will have three options: pick and pay, cash on delivery and cash before delivery. Customers will also get a ‘star’ for each shipment from Evaly under the customer loyalty program. The loyalty points can be used for future shopping with the platform.
Regarding the campaign, Evaly co-founder Shamima Nasrin said the company strongly believes that it will be able to repay past debts through resuming operations.
“Evaly is now a brand infused with this nation’s passion. We now have two independent directors from e-CAB and commerce ministry. So now, there’s more responsibility and accountability than before,” she said.
Read Evaly files application to restart business
Shamima mentioned that Evaly will offer products at an attractive price, without counting losses. “Utilising the infrastructure of digital Bangladesh and selling products profitably using e-commerce, we can give customers the ‘best price’ compared to the traditional market. We will give utmost importance to quick delivery and customer service,” she added.
The entrepreneur has pledged to deliver all previous orders. “We are looking forward to the early release of our former CEO Mohammad Rassel to accelerate our momentum and strengthen Evaly,” Shamima said.
On September 16, last year, Evaly CEO Mohammad Rassel and his wife Shamima were arrested during a raid on their house in capital’s Mohammadpur area.
Read Evaly CEO, chairman sued again in Chattogram
The owners of Evaly were allegedly involved in embezzlement of several hundred crores of taka. They were arrested after a victim filed a case against them.
On April 6 this year, Shamima, co-founder of Evaly, was out on bail.
Cylinder gas for industries: CNG filling station owners to seek Petrobangla directives
CNG filling station owners will seek directives from Petrobangla to deal with the export-oriented apparel and ceramic manufacturers’ request to supply them natural gas through cylinders for their industries amid energy crisis.
“We’ll seek directives from Petrobangla to decide on the request of the export-oriented industries,” Farhan Noor, general secretary of the Bangladesh CNG Filling Station & Conversion Workshop Owners Association (briefly known as CNG Station owners association), told UNB.
Recently, three export-oriented business bodies—Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) — requested the Bangladesh CNG Filling Station & Conversion Workshop Owners Association to supply natural gas to their member industries through cylinders.
The presidents of BGMEA and BCMEA in two separate letters, and the BKMEA chief verbally requested the CNG station owners association to help the export-oriented industries to supply gas through cylinders.
The mentioned in the letter that their industries have been experiencing a severe gas crisis as the pressure in gas supply drops to a zero PSI level at 8 am and it slightly improves at 11 pm.
“As a result, the operation of the factories is seriously hampered. The workers and employees of the factories pass their times sitting idle that ultimately makes the industries unable to supply the readymade garments as per lead-time of the export order,” said BGMEA president Faruk Hasan in his letter.
“Despite repeated discussions with the authorities concerned and sending of letters repeatedly no effective solution is being received from them in this regard,” it added.
The BCMEA and the BKMEA narrated the similar sufferings of their industries and made the similar request to the CNG station owners association.
They also referred to their meeting with Prime Minister’s Advisor Dr Tawfiq-e-Elahi Chowdhury on September 12 where they sought uninterrupted gas supply to their industries.
About the request of the three business bodies, CNG Station Owners Association general secretary Farhan Noor said that entertaining such requests of the three organisations is not possible as the existing law does not permit them to supply CNG through cylinders.
“Safety and security issues are involved in the matter,” he said, adding that 4 people were killed on October 13 in Gazipur during such illegal supply of CNG from a filling station to a cylinder of an export-oriented industry.
“So, we’re going to seek directives from Petrobangla on the issue," he added.
ATPF delegation visits Walton headquarters
A delegation of the chief executive officers (CEOs) from the Asian Trade Promotion Forum (ATPF) – a gathering of Trade Promotion Organizations (TPOs) – member countries has visited Walton headquarters in Gazipur.
The delegation was impressed with the research and innovation centre, manufacturing plants, the advanced production process, progress of the domestic high-tech industry as well as the potential of Bangladesh in export-oriented industries, said a media statement Saturday.
Set up in 1987, the ATPF now has 23 members with the objective of enhancing trade in Asia through information sharing, implementation of cooperative projects and strengthening networks among member TPOs.
CEO meetings and working-level meetings are held once a year. From October 18 to 20, the 35th ATPF CEO meetings were held in Dhaka where representatives from 23 countries including host Bangladesh joined.
As a part of the industrial visit programme of the 35th CEO meetings, organised by the Bangladesh Export Promotion Bureau, the ATPF delegation visited Walton headquarters Thursday.
The delegation members included Japan External Trade Organization (JETRO) and ATPF Secretariat Industry and Business Development Support Division's Deputy Director Yuta Ichinose, JETRO and ATPF Secretariat's Representatives Ryo Takahama and Yu Kaneko, JETRO Dhaka Office's Assistant Manager Yuya Usuki, India Trade Promotion Organization's Senior Manager Krishan Kumar and Manager Praful Nair, Enterprise Singapore's Regional Director Eileen Lee.
Cambodia General Directorate of Trade Promotion's Director General Kosal Kao, Cambodia Trade Policy Department's Director Seychanly Tith, Malaysia's External Trade Development Corporation's Deputy Chief Executive Officer Sharimahton Mat Saleh, and Pakistan's Trade Development Authority's Secretary Ahsan Ali Mangi were also part of the ATPF delegation.
They visited Walton's product display centre as well as manufacturing plants of several products, including refrigerators, air conditioners, and solar power plants.
After that, Yuya Usuki said: "This is the first time I am seeing this kind of factory in Bangladesh. Manufacturing companies like Walton are very important to diversify the country's industrial sector."
Krishan Kumar said: "At Walton headquarters, I saw amazing facilities, technology advancement, vertical and backward integration. Walton is producing a wide range of products which are being exported to other countries. It's remarkable progress in terms of the advancements made by Walton."
Ahsan Ali said: "Walton is a big success story for not only Bangladesh but also other countries. Walton's initiative for making compressors is a very unique and important step in the basic engineering sector."
Eileen Lee said, "The scale, size and sophistication of Walton are very impressive. We saw that they have a strong product research and innovation team, all experts, continuously innovating."