More British investment coming to Bangladesh
Desk Report: British businesses are increasingly optimistic about Bangladesh's investment climate and are planning to expand their footprint in the country in the coming years, said Baroness Rosie Winterton of Doncaster, the UK trade envoy for Bangladesh.
"What I'm hearing from companies is that they are certainly looking to increase investment and have future plans to do so," she told The Daily Star in an exclusive interview during her visit to Bangladesh last week. "It will take a lot of partnership work."
The envoy said the UK sees strong potential to expand trade in agro-processing, renewable energy, and the creative industries – areas that Bangladesh can capitalise on to reduce its dependence on readymade garments.
According to official data, UK-Bangladesh bilateral trade in the fiscal year 2024-25 totalled £3.9 billion, of which Bangladesh's exports stood at £3.4 billion and the UK's exports to Bangladesh at around £500 million.
The UK also remains one of the top foreign direct investors in Bangladesh, with a cumulative investment of about £3 billion by 2024.
Under the UK's Developing Countries Trading Scheme, Bangladesh continues to enjoy full duty-free access to the UK market until 2029, a support measure aimed at maintaining Bangladesh's export competitiveness as the country transitions from Least Developed Country status.
During the visit, Baroness Winterton met Chief Adviser Prof Muhammad Yunus, as well as advisers to the ministries of commerce and education, and the Chief Adviser's Special Envoy on International Affairs, Lutfey Siddiqi, to discuss the Bangladesh-UK partnership on economic reform, trade, and investment.
The trade envoy also held meetings with stakeholders from various sectors, including aviation, higher education, renewable energy, and defence industries. She visited UK-linked investment sites in Chattogram and met leaders of major political parties to discuss Britain's commitment as a long-term growth partner of Bangladesh.
"I am here to build on the strong partnerships that have existed for so many years. We've done good business together over the years, and I want to see that continuing and strengthening in partnership," said Baroness Winterton, who also attended an investment summit in Dhaka in April this year.
She noted that the UK government has been working closely with the commerce ministry, Bangladesh Bank, and the Bangladesh Investment Development Authority to simplify business regulations and make it easier for British companies to invest and operate.
"We feel there has been good progress, and that means there is now a very positive environment for us to take forward and further strengthen the partnerships that have already been created," she said. "I'm very hopeful that these partnerships will continue well beyond the transition period."
Baroness Winterton identified education as another area of rapid progress. "We have built a strong partnership between BRAC University and SOAS University of London to offer PhD programmes here in Bangladesh. That's a big move forward," she said, adding that more such collaborations are in the pipeline.
She also pointed to recent improvements in regulatory procedures, saying these have made it easier for British companies to invest.
"These are all very good signs, and the message we're getting back is that there is growing optimism from British businesses in terms of investing in Bangladesh and exporting to the UK," she said.
When asked about potential products beyond readymade garments that Bangladesh could export to the UK, she said British and Bangladeshi businesses are already exploring opportunities in agro-processed foods, mangoes, traditional arts, ceramics, leather goods, and other creative industries.
"These are areas that could be expanded in the future because that is the way the world is going," she explained.
British companies are also investing in garment factories to help the industry become more sustainable and resilient to climate change. British International Investment, the UK's development finance institution, is investing up to £450 million in Bangladesh between 2022 and 2026.
Speaking about aviation, Baroness Winterton said, "There are a range of opportunities that we will be exploring in the coming months and years."
She emphasised that historic ties and the contribution of the Bangladeshi diaspora form the backbone of the bilateral relationship.
"The diaspora is a very important part of UK society," she said. "So, there is naturally an interest in strengthening those partnerships, not only on the economic front but also through cultural links." News: The Daily Star.
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