ZCZC
BSS-42
SEMINAR-FINANCE
Long-term financing needed to attract FDI
DHAKA, Sept 24, 2019 (BSS) – Speakers at a seminar today underscored the need for long-term financing to attract more Foreign Direct Investment (FDI) in the country.
They said this at the seminar on “Foreign Direct Investment Promotion Project (FDIPP), Two Step Loan (TSL) Component” at the Lakeshore Hotel in the city.
Bangladesh Bank (BB) organised the seminar in association of PADECO Co Ltd, Japan and Young Consultants. Japan International Cooperation Agency (JICA) Bangladesh Office Representative Wataru Osawa attended the seminar as the chief guest while FDIPP Project Director and BB General Manager Md Nazrul Islam presided over the event.
Representatives from Bangladesh Economic Zones Authority (BEZA) and Bangladesh Investment Development Authority (BIDA), members of Japan Bangladesh Chamber of Commerce and Industry (JBCCI) and senior officials of the central bank attended the seminar.
Wataru Osawa said investment in Bangladesh will definitely expand as most foreign investors are discovering business opportunities in Bangladesh.
“However, I also observed that immature financial market is discouraging their eagerness to invest in Bangladesh. One of the biggest challenges for investors is the lack of long-term loan as well as its high interest rate,” he added.
He said huge amount of capital investment is required when investors start their business and usually it cannot be repaid in a short time, because naturally it will take time to make profits for a new business.
“We started our two step loan project to supplement the financial market of Bangladesh by offering long-term and low-interest rate loan, which current financial market cannot offer by them,” he added.
Among others, BEZA Manager (Planning and Development) Saleh Ahmed, JBCCI General Secretary and Director Tareq Rafi Bhuiyan (Jun) and Project Director and Financial Specialist of FDIPP (TSL) Teruki Takahashi delivered speeches at the seminar.
Saleh Ahmed said BEZA is setting up a special economic zone for the Japanese investors at Araihazar in Narayanganj on some 1,000 acres of land. “We have already acquired 500 acres of land. The acquisition of another 500 acres of land is under way,” he added.
He said the goal of the zone is to expand the facilities of diversifying industries to produce various commodities, to create a friendly environment for attracting Japanese and local investment.
Tareq Rafi Bhuiyan said many Japanese companies are showing their eagerness to set up their business entities in Bangladesh as there is an investment friendly environment in the country.
“The existing number of Japanese companies in Bangladesh is around 300. BEZA is establishing special economic zone for Japan. BEZA is also setting up a big economic zone on 30,000 acres land at Miresharai, Chattoggram. Establishment of the economic zones will help attract more FDI,” he added.
JICA has singed loan agreement with Bangladesh Bank for FDIPP in 2015. The project is designed to finance investors in Araihazar EZ, Japanese and Bangladeshi or other foreign joint venture enterprises and Bangladeshi companies who are expected to have more than US$1 million of deal with Japanese firms.
BSS/ASG/KUC/AS/2021 HRS