What deters NRBs from investing in Bangladesh     

Non-resident Bangladeshis (NRBs) living in the United Kingdom find corruption, the absence of rule of law in settling trade disputes, and non-professional behaviour of government officials as barriers to investing here.

Talking to The Business Post, several NRBs raised their concern about investing in Bangladesh. They also shared bitter experiences they had already faced.     

The government’s initiatives for economic development are fantastic and far-sighted, said MR Chowdhury Matab, managing director of MDH (UK).

“Bangladesh is very suitable for investment, but corruption, the lack of rule of law in resolving business disputes, and government officials’ misconduct are the main obstacles,” he said. 

“Investors did not get services from government agencies even after paying speed money. Rather, they faced unusual delays.”

He further said these barriers were discouraging aspiring investors from investing and building industries here. 

There is a positive vibe in economic indicators, and the government should remove the obstacles to cash in on investment opportunities, said Matab, also a director of the British Bangladesh Chamber of Commerce and Industry.   

“I wanted to invest more in Bangladesh but then lost interest as my experience was not good.

I invested in the banking sector, but the return was not good due to corruption,” said an expatriate preferring anonymity. He said nepotism and the presence of inept people on company boards lead to losses. “Why should I invest further then?”

“I faced problems but got no response from the regulatory body in that sector. Officials even demanded bribes,” he claimed.

Favourite sectors for investment

Agro-processing, education, health care, and small-scale manufacturing are the most attractive sectors to NRBs to invest in Bangladesh. The country also offers vast investment opportunities for NRBs in these sectors.

“Agriculture and agro-processing are the most attractive sectors, where there are huge opportunities both in local and export markets,” Md Rabbi Rahman, who has been residing in the UK for the last 20 years, told The Business Post.

There are a good number of Bangladeshis in the UK who prefer consuming vegetables and agro products imported from Bangladesh, he said.

In addition, British consumers also like vegetables imported from Bangladesh due to their taste and price, he said.      

“There will be a revolutionary growth in vegetable exports to the UK if we can invest in agriculture and agro-processing,” he added. 

Matab said the scope for investment in the health care sector is unlimited.   

“I have about 100 acres of land in Sylhet and would like to invest in the health care sector as there are huge opportunities to improve quality,” he said.

The necessity of quality and affordable health care services came under the spotlight during the ongoing Covid-19 pandemic, he explained.

Beyond this, there are a few small-scale manufacturing sectors, including leather, garment, and plastic, that are good for investment, he added.

“We have investable funds, and this is very crucial for the economic development of Bangladesh, which is on the way to graduate to a developing country,” said Dr Nesar Ahmed Chowdhury, former chairman of the Risk Management Committee of the NRB Bank.

“Beyond the financial sector, we can invest in others, but the government has to ensure an investment-friendly environment,” he said. Information and communication technology is another key area where NRBs are keen to invest.

“It is the Bangladesh government’s duty to bring expatriates to the country for investment. It should ensure a favourable business environment to establish industries in Bangladesh,” said Abdul Jabbar, a Labour Party councillor of Manchester. He made the comment on the sidelines of the Bangladesh Investment Summit 2021 held in Manchester on November 8.

Information and communication technology is a very lucrative sector for both British and NRB investors, he said. 

“I think British investors can be a part of Bangladesh’s economic development,” he said.      

After Singapore, the UK is the second largest foreign direct investor in Bangladesh, with $407 million invested in the fiscal year 2020-21.

Bilateral trade between Bangladesh and the UK stood at $4.11 billion in FY21. Bangladesh’s exports to the UK and vice versa were $3.75 billion and $360 million respectively during this period, according to the Bangladesh Bank data.