Impact investment strategy for Bangladesh launched

Four years after establishing the National Advisory Board for Impact Investment in Bangladesh, an impact investment strategy and action plan was launched on Tuesday.

Planning Minister Muhammad Abdul Mannan launched the action plan ‘Bangladesh impact investment strategy and action plan’ at a conference held at Bangladesh Investment Development Authority (BIDA) auditorium.

Welcoming the dynamic activities to promote impact investment in the country, the planning minister Mannan said this is the high time for the country to have such an alternative investment strategy in place.

“The government is working hard. And all together success will come. All need to be patient,” he added.

Sirazul Islam, chairman of BIDA and also the Chair of NAB Bangladesh, said that impact investment offers more sustainable investment. “… Building awareness is critical to the success of impact investment in Bangladesh,” he said.

According to the Global Impact Investing Network’s 2020 Annual Impact Investor Survey, 68 per cent of respondents reported that in 2019 their investments met their financial expectations, and 20 per cent said they outperformed.

The latest estimate of the global market for impact investments by the International Finance Corporation (IFC) shows that $2.3 trillion was being invested for impact in 2020, of which $636 billion clearly have an impact management system in place.

BIISAP has identified nine strategic recommendations under five priority intervention areas including positioning and identity, collaboration and inclusivity, education and training, alternative financing instruments and tools and finally, the incentives and policy follow-up.

Impact investment is a form of alternative investment strategy that aims to generate specific beneficial social or environmental effects in addition to financial gains.

NAB Bangladesh is one of the 35 member countries of UK based Global Steering Group for Impact Investment (GSG).

However, the market inside Bangladesh has not been mentioned in the strategy document.

Among others, Private Industry and Investment Adviser to the Prime minister Salman F Rahman, Professor Shibley Rubayat-Ul-Islam, chairman of BSEC, GSG Chairman Sir Ronald Cohen, Ambassador of Switzerland to Bangladesh Nathalie Chuard, Turkish Ambassador to Bangladesh Mustafa Osman Turan, president of Turkiye NAB Safak Muderrisgi were also present at the press conference.