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6 years ago

The appetite for investing abroad isn't reflected within

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Earlier this year proposals for overseas investments by seven large businesses were approved. Until now, only DBL Group, fast becoming a conglomerate, has pumped in $ 100 million in Africa while others are grumbling at lengthy and tardy processes. All this in the midst of renewed calls by would-be-investors not to miss the investment bandwagon in Africa. China and India are leading that processes with Chinese thinking aeons ahead through a combination of aid and investments. As the Head of Bangladesh Africa Investment Forum has put it, the time is now to be a major player rather than an outsourcing partner.

DBL has a clear roadmap inclusive of professional management outside the claustrophobic and myopic vision of family-run enterprise. The others haven't found it easy to let go, more so after the famous burp of discontent involving the Tata set-up. The belch of an empire that size sounds louder than others. But it doesn't explain how investment appetites in Bangladeshi enterprises grow only in sight of overseas pastures. Apparently over a hundred such enterprises are eager to invest abroad suggesting the money is there. Yet banks and financial institutions aren't finding customers for big ventures.

If business is profitable, and the spectacular growth of small and medium enterprises (SMEs) suggest as much, why are these sand businesses not wanting to invest in country? Nitol Group Chairman Matlub Ahmed is on record as saying he wants to invest in farming in Africa. Given his success in industry, that he doesn't find prospects encouraging enough in Bangladesh isn't a good sign. It would make light of the investment friendliness of Bangladesh that the government is continuously trying to communicate and propagate. For years we have heard of trade bodies and government exploring alternative markets. Either everyone's gone to sleep or such statements are confined to the rings of smoke from the pipe dreams.

Recognition, through best tax payer awards and export awards, does not seem to have worked. Perhaps it is time policies are re-looked at and compared with those of countries that are of interest to investors. Aspiration towards middle-income nation status is more about changing views and perceptions and policies than just public statements based on a pile of statistics. The exposure of public and private sectors to business and society around the world, should be eye-openers.

The concept of Bangladesh-Africa Investment Forum as opposed to a joint chamber is in itself a new approach. As time goes on Bangladesh should ready itself for a progressive decline in remittance and drive more for investment returns. Groups such as DBL will require policy support to repatriate profits similar to that expected by foreign investors in Bangladesh. The statements of public representatives that massive sums are laundered under different guises merely point system failures that are man-devised. Inter-governmental agreements to prevent such incidents and loopholes work better than finger-pointing.

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