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Published on November 20, 2016
“We aim over the next three years basically to do long-term financing between 2 to 2.5 billion dollars,” new IFC country head Wendy Werner in Bangladesh said in an exclusive interview.
The financing will largely go to the manufacturing sector, infrastructure, power, logistics and financial sectors, she added.
IFC in the last fiscal ending June invested $635mn in Bangladesh, she further noted.
Bangladesh is already a powerhouse in at least one sector – apparels – and there is a need to diversify that base, deepen value addition in apparel and make available the opportunity for other sectors, she said.
Readymade-garment sector has access to bonded warehouse, fast-track approval facility and a number of other incentives, she said. “That works very well. So, why not take the example that works and apply it to other sectors?”
In her opinion, the potential sectors in Bangladesh are footwear and leather goods and light manufacturing.
While talking to the Bangla Tribune, IFC country head said the priority policy should be addressing business environment and making the procedure simple, access to quality infrastructure, and improved urban services and access to land.
About the challenges, she said the cost of doing business, including indirect costs and infrastructure costs, is growing in Bangladesh.
“Policy and firm levels need to continue to focus on improving skill and productivity,” she added.
Citing the Doing Business report recently published, she said the business environment would continue to be a big challenge.
In the latest Doing Business report, Bangladesh ranked 176 out of 190 countries.
Land is a big concern in Bangladesh and it needs to addressed and in her opinion, special economic zones are an excellent start.
“Those zones make available improved land for large investors, foreign investors and small and medium enterprises,” she said.
About the access to finance, she said it is definitely a challenge for the entire financial sector.
“The financial sector needs to increase the availability of finance and types of financial products that are offered to the business sectors,” she said.
About the development of the private sector, she said the firms need to invest to meet the higher quality standard to expand their product base.
“We continue to look further for partners that really have that kind of ambitious scale to address the development challenges,” she said.
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