Prime Minister Sheikh Hasina on Wednesday (August 23, 2023) invited South African entrepreneurs to make investments in Bangladesh that seeks to become a trillion-dollar economy and a fully developed smart nation by 2041.
“Bangladesh progresses toward prosperity. We want you to join our journey of development. Do invest in Bangladesh; we are confident that your investment will be primed for success, and we are fully prepared for a sustainable partnership,” she said.
The prime minister was speaking at the Bangladesh Trade & Business Summit in South Africa jointly organised by Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Investment Development Authority (BIDA) at the Radisson Blu Hotel and Convention Center.
“I have a dream; the 170 million people of Bangladesh have a dream. And that is to become a trillion-dollar economy and a fully developed smart nation by 2041,” she added.
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Hasina assured that investment in Bangladesh is secure due to consistently high returns.
“Moreover, our government ensures a business-friendly and stable atmosphere that guarantees your investment’s success," said the PM.
She confidently stated that Bangladesh promises a secure and prosperous future for global investors.
Currently, she mentioned, Bangladesh has the most open Foreign Direct Investment policies in South Asia which include a liberalised industrial policy, one-stop service, an allowance for 100 per cent foreign ownership, an easy exit policy, a 15-year tax exemption, a VAT exemption for imported machinery, streamlined services, and more.
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“We welcome investors worldwide, particularly from South Africa, to explore the numerous investment prospects within Bangladesh. This is the perfect time to acquaint yourselves with what Bangladesh offers. This is the time to know Bangladesh better and to invest in its future,” she said.
The prime minister said that over the last five decades, Bangladesh and South Africa have built a strong and friendly relationship based on mutual respect, shared values, cultural ties, and common beliefs.
She said that this bond has been strengthened by growing trade connections. Both countries have similar paths of development, making collaboration and growth feasible.
But, she mentioned that despite the significant potentials, the bilateral trade between Bangladesh and South Africa was only USD 316.83 million last year, falling short of its full potentials.
“This presents a promising opportunity for collaboration, given the export and import potential of both nations,” she said.
PM Hasina said that she is confident that ample collaboration opportunities exist for both nations, involving business communities and trade organisations.
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“Beyond existing bilateral mechanisms, we're enthusiastic about establishing a 'Joint Committee on Trade and Investment' and negotiating a 'Double Taxation Avoidance Agreement with South Africa'.”
She said that Bangladesh offers opportunities across sectors like ICT, electronics, infrastructure, textiles, tourism, heavy industry, and small industries.
“Our government is committed to facilitating smooth business operations. Bangladesh is ready to welcome prospective South African investors," she told the conference.
She said that organisations like the Bangladesh Investment Development Authority, Bangladesh Economic Zone Authority, Bangladesh Export Processing Zone Authority, Bangladesh High Tech Park Authority, and Bangladesh Securities and Exchange Commission, all support foreign investors for optimal returns.
She said that as the growing economy, Bangladesh is poised for substantial long-term financing. Amid the 4th Industrial Revolution, AI, and Venture Capital, Bangladesh is pursuing "Financial Connectivity" globally, prioritizing "Investment Banking" over traditional Consumer Banking.
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In this connection, she said that the Bangladesh Securities and Exchange Commission (BSEC) is elevating the capital market for essential long-term financing. In 2020, the stock markets outperformed regional peers, with USD 61 billion in market capitalisation, or 16.8 per cent of GDP.
For financial progress, Sheikh Hasina said, we have expanded our bond market, introducing Sukuk, Green Bonds, ETFs, Venture Capital, Private Equity, and Impact Funds, diversifying investment opportunities. Soon, we are going to include derivative products in our capital markets, which will help minimize investment risks through hedging.
Portfolio investments have also been made flawless through enhanced facilities for repatriation of the principal and returns without any kind of approval, she added.
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She said that the significant Bangladeshi population in South Africa forms a strong base.
“Thanks to expatriates for contributing to our economy. We urge you to invest more in our growth," she said.
She also said that a joint business forum between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the South African Chamber is also planned.
The prime minister said that the robust private sector of Bangladesh will keep providing a great range of opportunities for those who invest in country’s economy.
“We are confident that we are heading full speed forward on the path of the 4th industrial revolution.”
Terming people of the country as the heart of strength, she said that about 55 million youth with the requisite skills are committed to accomplishing the task ahead.
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“Our fortunate position is enhanced by connections on both regional and global levels. Additionally, a growing domestic market and an expanding consumer class further strengthen this demographic benefit," she said.
She said, with a population exceeding 1.5 billion, South Africa is currently experiencing rapid urbanisation and economic growth.
“This provides favorable opportunities for Bangladesh to expand its exports, particularly in sectors like textiles, ready-made garments (RMG), pharmaceuticals, and agricultural products.”
She mentioned that in the past decade, Bangladesh has shifted its focus towards untapped markets in Africa. Both government officials and business leaders in Bangladesh recognise the potential of African economies and the benefits of stronger trade relationships.
“With a growing middle class, an increasing population, and rising consumer demands, Africa becomes an attractive market for Bangladeshi exports," she stated.
Hasina said that to fortify its diplomatic connections and pave the way for future economic openings, Bangladesh has formally adopted the 'Look Africa' policy.
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“Simultaneously, Bangladesh is actively exploring avenues to procure essential natural resources and raw materials from African nations," she said.
This category includes the requisite raw materials for Bangladesh's growing industries, spanning minerals, petroleum products, cotton, agricultural products, and more, she said.
The Prime Minister said that the government is establishing 100 Special Economic Zones, 109 Hi-Tech and Software Technology Parks, and IT Training and Incubation Centres across the country to facilitate commerce and industrialisation.
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“The recent inauguration of the Padma Bridge and Matarbari Deep Sea port will further amplify both external connectivity and internal trade, thus acting as catalysts for growth.”
Minister of Public Works and Infrastructure, South Africa Sihle Zikalala spoke at the event.
Foreign Minister Dr AK Abdul Momen and Prime Minister's Private Investment and Industries Affairs Adviser Salman Fazlur Rahman were, among others, present at the venue.
BIDA Executive Chairman (Senior Secretary) Lokmn Hossain Miah was also present while Chairman (Senior Secretary) of Bangladesh Securities and Exchange Commission (BSEC) Professor Shibli Rubayat-Ul-Islam gave brief descriptions about Bangladesh's economy and the government's efforts to expedite foreign direct investment in Bangladesh.