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Bangladesh looks to grab export opportunities in untapped African countries, including tightening trade ties and increasing export earnings, with intent to address its LDC graduation challenges, officials say.
With this end in view, commerce ministry is working to explore the prospects across the continent.
It has already asked the Bangladesh Trade and Tariff Commission (BTTC) to submit a detailed report on the products having export potential in the African region.
"We want to increase the volume of export in the bloc. For this, we're working on the issue," says a senior official of the ministry.
"Bangladesh exports to only five to six African countries and high import tariffs are a major barrier, apart from infrastructure deficiencies there, to increase exports."
Service sector is a magnet for investment, he adds.
The official further says that renewed focus on Africa by local businesses and investors may help Bangladesh overcome challenges as a result of erosion of trade facilities in other continents.
The ministry has started negotiating with a number of African nations to sign bilateral free trade agreements (FTAs) to boost trade and investment, he cites.
The government will sign more FTAs and preferential trade agreements (PTAs) with different countries to offset potential losses of trade facilities in the European Union and America after LDC graduation.
"Trade with African nations will benefit Bangladesh if we increase trade ties further," says a high official of the ministry, adding that it has enormous untapped trade possibilities in African.
"Bangladesh's exports will boost significantly if we sign some PTAs and FTAs before graduation," maintains a source.
He estimates that Bangladesh's exports will rise by $6.0-6.50 billion a year if countries in Africa, Latin America and Southeast Asia offer duty-free access.
"Bangladeshi pharmaceutical items have a very good market in the region as we have seen a very positive growth in Africa."
Experts believe the signing of FTAs and PTAs will help address the challenges as Bangladesh graduates to the next level.
Currently, there is a common customs union in the African region of 54 countries.
African economy covers trade, industry, agriculture and human resources of the continent. As of 2019, approximately 1.3-billion people were living in Africa, according to Wikipedia.
Africa is a resource-rich continent. Recent growth has been due to increased sales in commodities, services, and manufacturing, it reveals.
West Africa, East Africa, Central Africa and Southern Africa in particular may reach a combined GDP of $29 trillion by 2050, says the online encyclopedia.
In fiscal year 2020-21, the volume of export was $396942717.67 million, including South Africa ($110401762.37 million) in African countries, discloses the Export Promotion Bureau.
Of the amount, more than one fourth of the earnings volume was achieved from South Africa.
"We've received a letter from commerce ministry for a report on Bangladeshi products having export potential in the African region. We are working on the issue", a BTTC official told the FE last week.