BANGLADESH 2019 2019 BANGLADESH PERSPECTIVE FINANCE MANUFactURING ENERGY agricUltURE WELFARE LEADING EDGE LEADING Shutterstock: Studi8Neosiam Shutterstock: 12 LEADING EDGE CONTENTS / 4 16 38 PERSPECTIVE / FINANCE / ENERGY / 6 The rise and rise of 18 The finances of efficiency 40 The new energy mix Bangladesh BRIEFING and inclusion BRIEFING BRIEFING 8 Sheikh Hasina, Prime 20 H.E. Abul Maal Abdul 42 H.E. Nasrul Hamid, Minister of Bangladesh Muhith, Minister of Finance Minister of Power, Energy PROFILE INTERVIEW and Mineral Resources INTERVIEW 10 Bangladesh at a glance 22 Economic Indicators PUBLISHER: FACTS & FIGURES FACTS & FIGURES 44 Rabiul Alam, Chairman SANTIAGO ORDIERES — Energypac INTERVIEW 12 Six reasons to invest 23 The Bangladeshi bank HEAD OF INSTITUTIONAL RELATIONS / in Bangladesh proving its commitment to ASSOCIATE PUBLISHER: FACTS & FIGURES serving the nation SOPHIA SHEPODD IN-DEPTH 14 A tale of two countries: 46 EDITOR: Bangladesh and the UK 24 Dr. Zaid Bakht, CARMEN MOURA IN-DEPTH Chairman — Agrani Bank AGRICULTURE / Sally CRAIL Limited INTERVIEW ART DIRECTOR: 15 Dr. A.K. Abdul Momen, STEVE FARDY Chairman — Chittagong 25 Mohammad Shams Ul- 48 Agriculture: Room to Stock Exchange, and Patron Islam, Managing Director grow BRIEFING PRODUCTION COORDINATOR: — British Bangladesh and CEO — Agrani Bank ARI BASTART Chamber of Commerce and Limited INTERVIEW 50 Developing sustainability PROJECT COORDINATOR: Industry INTERVIEW in farming IN-DEPTH ELENA SOLER 52 Shehzad Munim, EDITORIAL DIRECTOR: Managing Director — CARLOS SILVAN 26 British American Tobacco CONTRIBUTING EDITORS: Bangladesh INTERVIEW NATHALIE BOURGEOIS MANUFACTURING / STEPHANIE GOUGH DINFÍN KOYONJO MulupI 28 Making things happen BRIEFING 54 COVER IMAGE: 30 H.E. Tofail Ahmed, SHUTTERSTOCK: Minister of Commerce WELFARE / ARLO MagICMAN INTERVIEW 56 A turn in the road 32 M. Anis Ud Dowla, BRIEFING Chairman — Advanced Chemical Industries (ACI) 58 Shafiullah al Munir, INTERVIEW Chairman — Index Group INTERVIEW 34 The garments industry: All dressed up and with 59 Empowering individuals, places to go IN-DEPTH communities and the nation through CSR IN-DEPTH 36 The pharmaceutical industry: Healthy prospects 62 A leading business IN-DEPTH enhancing lives IN-DEPTH In collaboration with the British Bangladesh Chamber of Commerce and Industry (BBCCI) 2nd floor Berkeley Square House London W1J 6BD, United Kingdom T: +44 (0)20 7887 6105 E: [email protected] W: www.leadingedgeguides.com BANGLADESH 2019 3 Shutterstock: StevenK PERSPECTIVE / BRIEFING / FacTS & FIguRES / 06 10 THE RISE AND RISE BANgladESH OF BANgladESH AT A glaNCE High, consistent economic growth and 12 strong social policies SIX REASONS have made Bangladesh an TO INVEST IN unexpected success story BANgladESH PROFILE / IN-DEPTH / 08 14 SHEIKH HASINA, A TALE OF PRIME MINISTER OF TWO COUNTRIES BANgladESH Bangladesh-UK economic and political relations INTERVIEW / 15 DR A.K. ABDUL MOMEN, CHAIRMAN — CHITTagONG STOCK EXCHANGE, AND PATRON — BRITISH BANGLADESH CHAMBER OF COMMERCE AND INDUSTRY LEADING EDGE Azerbaijan 13 BRIEFING THE RISE AND RISE OF BANgladESH Over the last ten years, Bangladesh has engineered a spectacular turnaround in its development. High, consistent economic growth as well as strong social policies have made an unexpected success story of this Asian nation. Shutterstock: Lumenite Shutterstock: Bangladesh’s capital, Dhaka, is one of the world’s most populous and fastest-growing cities THIS MARCH, the United Nations Committee for Few developing countries have been able Development Policy announced that Bangladesh to maintain growth of this sort over such a had successfully met the criteria to graduate from prolonged period. Bangladesh has established Least Developed to Developing Country status. itself as one of Asia’s most unexpected success The decision was based on stories, and its trajectory is drawing increasing Bangladesh’s progress in three international interest. Not so long ago, it was one Though its early growth key areas: per capita gross of the poorest regions of Pakistan; it overtook owed much to the success of national income, education that country in economic growth in 2006 and and health index and its has since exceeded Pakistan’s annual growth by its garment manufacturing resilience to economic and some 2.5 percentage points per year. By 2020, industry, now other industries environmental shocks. When experts predict Bangladeshis will have a higher are flourishing, including the status is formally granted per capita income than Pakistanis. Bangladesh in 2024, Bangladesh will have even looks set to exceed India’s growth this year.2 aquaculture and online the same economic ranking The young nation accelerated its development services. as Mexico, Turkey and India. by embracing technology and the digital age. The This is a remarkable government’s Digital Bangladesh programme achievement for a country has extended internet access and government that gained independence only 47 years ago. Over services across the country, and 145 million of the past decade, Bangladesh has consistently an estimated 166 million population are mobile- ranked among the top 10 nations worldwide in phone subscribers. In just the past six years, economic growth, with GDP growth averaging there were nearly 59 million new subscribers, 6% since 2005 (reaching 7.1% in 2016). Between according to the CIA’s World Factbook. 2009 and 2017, the economy increased from In the meantime, recently released data from $100 billion to $250 billion, a staggering 150% the World Bank shows that among Bangladeshi expansion.1 adults with bank accounts, 34.1% made digital 146 LEADINGLEADING EDGEEDGE PERSPECTIVE THE RISE AND RISE OF BANGLADESH income status. By 2018, it had fulfilled all three eligibility criteria for graduation from the UN’s Least Developed Countries list for the first time and is on track for graduation in 2024. Throughout this period of economic expansion, Bangladesh stands out for its constant focus on progressive social policies. Access to healthcare, education and basic infrastructure has improved. Shutterstock: Tero Vesalainen Tero Shutterstock: Between 2000 and 2016, primary school enrolment increased from 80% to 99% and secondary school enrolment rose from 45% to 54%. Bangladesh has successfully achieved gender parity in primary education, with 99.4% of all girls attending school, and the country’s adult literacy rate hit a 12-year high in 2017.5 Prime Minister Sheikh Hasina has made empowering women a priority. Development programs by BRAC — an international development organisation based in Bangladesh and one of the largest non-governmental development Garment manufacture was key to Bangladesh’s economic success organisations in the world — as well as Grameen Bank have improved work opportunities for women living in rural areas. Under the prime transactions in 2017, compared to an average minister’s administration, women have assumed rate of 27.8% for South Asia. high positions in government, business and Bangladesh has also diversified its economy, labour organisations. Last year, the World reducing economic vulnerability. Though its Economic Forum ranked Bangladesh first in early growth owed much to the success of its gender equality among South Asian nations for garment manufacturing industry, now other the second consecutive year. industries are flourishing, In terms of GDP, this year, Bangladesh is including aquaculture and expected to grow by 7%, followed by an additional As it moves forward, online services. The garment 7.2% in 2019. Per capital growth is expected at Bangladesh will continue to industry, which represents 80% 5.7% in 2018 and 5.8% in 2019. The country’s of exports totalling $28 billion seventh Five-Year Plan, covering 2016-2020, aims address the new demands in 2017, is also diversifying; for Bangladesh to reach the middle-income level for energy, transport and today, high-end sportswear by 2021, the year that marks the 50th anniversary urbanisation brought about by produced in Bangladesh can of the country’s independence.6 be found in Europe’s trendiest As it moves forward, Bangladesh will continue economic expansion. stores. Additionally, recent to address the new demands for energy, transport improvements in energy and urbanisation brought about by economic infrastructure, including the expansion. In collaboration with the Asian start of liquefied natural gas imports in 2018, Development Bank, the government intends to are helping to eliminate a key bottleneck to continue to diversify the economy for industrial future growth. development, transform the rural economy and Furthermore, since independence Bangladesh develop better rural-urban linkages to ensure has reduced its incidence of poverty from over half inclusiveness. Strategic plans are in place for the of the population to less than a third, achieved development of economic corridors to position the Millennium Development Goals for maternal country well in regional and global value chains, and child health, increased life expectancy and including further development of the Dhaka- literacy rates, and made significant progress in Chittagong industrial artery, extending to Cox’s References food security. The World Bank states that average Bazar in the southeast, and the development of 1 The Diplomat, “Bangladesh life expectancy in the country is now 72 years, the southwest economic corridor from Dhaka. set to reach economic par compared to 68 years for Indians and 66 years The World Bank has identified job creation