Dhaka can offset potential losses of trade facilities in Europe and America after LDC graduation if Bangladeshi businesses explore ‘golden opportunities in an untapped African market’, observed an investment conference on Saturday.
With increasing trade, investment and higher connectivity, said DCCI President Rizwan Rahman, about four million Bangladeshis can be employed in different sectors in Africa.
Signing free trade agreements with African countries, investing in joint venture projecting, and initiating direct flights with a few business destinations were also recommended at the webinar on “Trade & Investment Cooperation of Africa and Bangladesh: Towards a new trajectory”, held on the day 5 of ‘Bangladesh Trade and Investment Summit 2021’.
Addressing as the chief guest, Planning Minister MA Mannan urged the Bangladeshi entrepreneurs to grab the untapped potentials in agriculture, food-processing, digital products and services in Africa.
He assured the businessmen that the government would provide all supports, including giving scope to make outbound investments in Africa and elsewhere.
Business leaders and trade diplomats have come up with a series of recommendations including ones for diversifying export items and markets, and creating higher investment opportunities at home and abroad, at the ongoing weeklong conference, organised by the Ministry of Commerce and Dhaka Chamber of Commerce & Industry (DCCI).
“Bangladeshi investors can invest in Africa to take advantage of African Growth and Opportunity Act (AGOA) and can expand exports to the US market for strategic market sustenance,” said Mr Rizwan Rahman.
He suggested that frequent exchange of business delegations and regional trade fairs could help identify areas of business cooperation and utilise potentials.
Bangladesh’s two-way trade with Africa is around US$1.5 billion a year, he said.
Bangladesh exports to only 5-6 countries of Africa and high import tariffs are a major obstacle, apart from infrastructure deficiencies there, to increase exports, said AHM Ahsan, Vice Chairman and CEO, Export Promotion Bureau (EPB).
However, he pointed that the service sector is a potential sector for investment.
The official also pointed out that renewed focus on Africa by Bangladeshi businesses and investors might help the country to overcome the challenges as a result of erosion of trade facilities in other continents.
“Africa is a rising continent. It is a resourceful one, both in terms of human capital and natural resources,” said Md. Tarikul Islam, Director General of Africa Wing at the Ministry of Foreign Affairs.
He explained that African investment flow to Bangladesh is not remarkable due to their restrictions on outbound investments. The diplomat still suggested that the Africans have the scope to invest in textiles, pharmaceuticals, footwear, RMG, leather, paper and pulp, ship breaking and agriculture while the government of Bangladesh would provide facilities.
Dhaka is also negotiating with a number of African countries to sign a bilateral free trade agreement to boost trade and investment, he said.
Muhammad Zahangir Alam, Director at Square Pharmaceuticals Ltd., said Africa largely depends on imported medicines. However, in the past 10 years, “We have seen a very positive growth in Africa”.
Bangladeshi pharmaceutical companies including Square are planning to invest in Africa, especially the Sub Saharan region. “Investment in Africa will increase our confidence in overseas investments as they are very welcoming and positive,” he said terming this a new window opening for Bangladesh.
M Mosaddek Hossain, Managing Director, UniMed UniHealth Pharmaceuticals Ltd, said generic pricing of generic pharmaceutical products is a challenge for Bangladesh and global multinational companies often dominate the trade. “We need increasing interactions to improve the situation,” he added.