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The International Finance Corporation (IFC) is expected to double its investment in Bangladesh in next five years to promote job generation and resilient economic recovery and green growth.
IFC Regional Director for South Asia Hector Gomez Ang disclosed the plan of the private-sector-lending arm of the World Bank Group at the end of a five-day visit to Bangladesh-at a time when the country striving to turn around onto its growth trajectory after the pandemic-induced setback.
The areas of investment hinted at are energy diversification, health, education, climate, economic zones, and green and affordable housing.
"IFC promotes energy diversification and already supports more than 20 percent of the private power generation in Bangladesh. We are looking to do more in terms of the energy mix and transmission, and also to explore new opportunities in healthcare, education, climate and economic zones, and green, affordable housing," Gomez Ang was quoted as saying in a release issued by the IFC on Thursday.
The top official of the Washington-based investment agency held meetings with senior government officials, private-sector representatives, think-tanks, potential new clients and other key stakeholders. Country Manager for Bangladesh, Bhutan and Nepal Martin Holtmann and senior IFC industry experts accompanied Gomez Ang.
He said an upper-middle-income Bangladesh should start with a livable Dhaka, and the IFC is eager to develop the affordable housing sector as it is critical to inclusive growth.
Gomez Ang, after a meeting with Bangladesh Investment Development Authority (BIDA), stressed the need for more foreign direct investment in Bangladesh.
"Graduation from least-developed countries (LDC) to a developing-country status presents a challenge, so, it's imperative for Bangladesh to look to foreign direct investments and external commercial borrowing for sustainable growth and Bangladesh's transition," he said.
He termed the discussions with the government very promising, expecting forward to have closer collaboration.
Gomez Ang thinks this is a critical time for Bangladesh's development journey, and the private sector has a pivotal role to play in Bangladesh's sustained growth and to take it to the next stage of development.
IFC's past investments over the years have had a major impact on Bangladesh's private-sector development and the country's vision of a 'Digital Bangladesh', according to the release.
Examples include early equity investments in Bkash, Chaldal, Truck Lagbe, and City Bank, which has helped accelerate digitization during the pandemic. COVID-19 has also highlighted the critical need for infrastructure to improve the quality of healthcare in Bangladesh, which is another area that IFC is keen to invest in, the press release adds.
The country director said the IFC has invested US$470 million to help businesses and sustain jobs during the pandemic. Martin Holtmann said the investments help keep businesses afloat, resume exports, and preserve jobs.
"We intend to invest another further $250 million during the current fiscal year ending in June 2022."
The press release also said since 2010, the IFC has invested over $3.5 billion to help private sector grow in Bangladesh. Over the next five years, it has a target of a nearly $5 billion investment programme in diversified sectors such as light engineering, economic zones, financial and capital markets, and growth-enabling sustainable infrastructure.
This year, the World Bank Group celebrates 50-year partnership with Bangladesh. The IFC has been at the forefront of helping spur the private sector to create jobs and helping the economy grow.