TDS Desk:

At least 29% of the country’s total foreign direct investment (FDI) in the 2023-24 fiscal year was invested in Bangladesh Export Processing Zones Authority (Bepza), according to Bepza Member (Investment Promotion) Md Ashraful Kabir.

“The eight export processing zones (EPZs) under Bepza and the Bepza Economic Zone occupy only 3,445 acres, or 13.95 square kilometres, of the country’s total area. Despite their limited size, these zones played a crucial role in attracting $424.29 million in FDI out of the country’s total $1,468.17 million during the fiscal year,” he said.

He made the remarks during a press briefing held at the Bepza complex in Dhaka on Monday (27 January).

Ashraful also noted that Bepza accounted for 16% of the nation’s total exports in FY2023-24. Of the $48.84 billion in total exports, $7.07 billion worth of goods were exported from Bepza-operated zones.

Over the years, Bepza has consistently contributed between 15-20% of Bangladesh’s total exports, he said.

In response to journalists’ questions, Bepza Executive Chairman Maj Gen Abul Kalam Mohammad Ziaur Rahman provided a year-on-year comparison of exports and investments for the July-December period in 2023 and 2024.

EPZ industrial exports rose by 22.41%, increasing from $3,371 million in July-December 2023 to $4,126 million in the same period of 2024.

However, investments in EPZs declined by 22.33%, dropping from $162.66 million in July-December 2023 to $126.33 million in the corresponding period of 2024.

Commenting on the decline, the Bepza chairman said, “In the last six months, investment in Bepza has decreased slightly compared to before. The reason includes some global issues like the country’s overall situation and the dollar crisis.

“However, this picture will turn around in the future. Domestic and foreign investors are already approaching us. Some foreign companies have told us that with the new president in the USA, there will be challenges exporting goods from China to the USA.

“These companies are now considering relocating their establishments from China to Bangladesh. Recently, a foreign company proposed a $150 million investment, and investors are showing interest in manufacturing solar panel components and chemicals,” he said.

Ziaur reiterated the organisation’s commitment to driving investment and export growth in Bangladesh. He stressed the strategic importance of EPZs in supporting the country’s economic progress.

He said that uninterrupted energy remains a challenge, but if this can be overcome, there will be no issues with investment flow. “We currently have nearly 50 investment proposals.”

The EPZs produce a diverse array of goods, including tents, bicycles, cosmetics, Hollywood masks, camping furniture, golf shafts, wigs, mannequins, jute products, energy-saving bulbs, metal products, toys, eyeglasses, camera lenses, mobile parts, car seat heaters, bamboo coffins, PPE, face masks, bridal gowns, gift boxes, eyelashes, cartons, PVC aprons, safety shoes, bags, and luggage.

Since its inception, Bepza has attracted a total of $6.91 billion in investments and facilitated exports amounting to $114.91 billion up to 2024, according to authorities.